Municipal councils all over Chile are increasingly adopting an unprecedented role in housing policy, challenging the country’s prevailing neoliberal model. In this article, we analyse the district of Recoleta, whose municipal council is pioneering a ‘fair rent’ strategy that seeks to transform the housing supply model and the subjectivities of residents. Through its hybrid municipal management model, Recoleta is disputing the ownership-centric approach and promoting housing as a common good. In this article, we use documentary analysis and interviews to explore how this experience has reconfigured common perceptions of housing and presented new opportunities for social justice and gender equity.