Fractional investment provider DomaCom has partnered with a community housing provider to deliver affordable housing for essential workers and returns for its investors.

DomaCom and BlueCHP have agreed to the $250 million affordable housing project which will allow teachers, nurses, firefighters and police housing with a 25% lower rental price than the market pricing.

Investors will be able to invest through DomaCom's Affordable Property Accelerator, with the discount obtained from developers to deliver a price discount.

The tenants will also receive 5% equity in the property over the first five years.

DomaCom chief executive Arthur Naoumidis said one of the hurdles for investors to help deliver affordable housing is having to sacrifice investment returns.

"This is particularly important to superannuation funds as they are required to comply with the Sole Purpose Test when investing and are not able to accept discounted investment returns even if it is for a good social purpose," he said.

"This project will both deliver attractive investment returns whilst also providing affordable housing to essential workers."

BlueCHP is a tier one community housing provider and can access low-cost government housing loans via the National Housing Finance and Investment Corporation.

BlueCHP chief executive Charles Northcote said community housing providers have had issues accessing capital but allowing private investors to complement the low cost loans solves the problem.