The Rent Choice Assist program will provide tenants with financial support on their rental repayments for up to three years.
Tenants will need to demonstrate their capacity to find a job or study opportunities that support their private rental accommodation.
Rent Choice Assist trials will take place in four locations: Blacktown, Campbelltown, Hurstville and Newcastle/Lake Macquarie, for up to 200 participants in September.
Tenants must have the capacity to afford private rental accommodation at the end of the subsidy period.
The NSW Government has committed $1 billion for homelessness services over the next four years.
Minister for Social Housing Pru Goward said Rent Choice Assist was the latest private rental assistance support to help people keep a roof over their heads.
“Unforeseen events such as illness or retrenchment can put people at risk of homelessness but Rent Choice Assist can support them while they get back on their feet,” Ms Goward said.