In this paper, we have investigated the impact of the public rental housing, which has been provided for the housing welfare, on the housing market in surrounding areas. Existing-unit- sing public rental housing, such as purchased rental housing and Jeon-se rental housing, as well as construction public rental housing, such as permanent rental housing and national rental housing, has significant impact on the private housing market. Therefore it was analyzed how the public rental housing in each region had impacts on the purchase price and Jeon-se price by using the fixed-effect model of Seoul panel data. As the result of analysis, public rental housing is effective in lowering the Jeon-se price of the surrounding area, but is found to have rather raised the purchase price. Broken down by category, construction public rental housing's effect on the charter price is relatively great. On the other hand, existing- nit-using public rental housing is found not to be statistically significant for the Jeon-se price. In conclusion, the public rental housing, which let down directly resident's burden through low rent, stabilizes the Jeon-se price. Therefore it is necessary to try to expand the government's public rental housing inventory. In particular, there is a need to increase the supply of construction public rental housing to enhance the effect of stabilizing the market.