The Big Housing Build initiative aims to create more than 150 affordable homes across regional Victoria, with homelessness service provider Haven Home Safe awarded a $47 million contract for the project.

Of the 31 new units in Horsham, 11 are planned to be two-bedroom and 20 are planned to be single bedroom units.

Ballarat-based Elmstone Property Group was awarded the project and has been working to find a suitable Horsham site.

The project will create up to 150 jobs for the region.

Haven Home Safe chief executive Andrew Cairns said a supply of affordable housing in regional towns such as Horsham will be key for future economic development.

"The Big Housing Build will change many lives for the better, now and into the future. It will significantly increase the supply of affordable rental housing and support employment and economic growth in many regional towns and cities," he said.

"As a key delivery partner of Homes Victoria, we will work closely with government, industry and communities to maximise social and economic benefits.

"Getting a job, studying and actively participating in your community is more achievable with a safe, secure, affordable place to call home."

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More than 290 people in Horsham are registered with the Victorian Housing Register for social and affordable housing.

According to rental data, the median rent for a two-bedroom property in Horsham is $268 per week, with a single person on Job Keeper receiving $620.80 per fortnight.

The 31 new homes in Horsham will best suit single renters, couples and small families.

Haven Home Safe already has eight affordable rental properties in Horsham, four of which have been rented by the same tenants since 2012.

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