The average weekly rent will now increase by £0.71, from £70.26 to £70.97.
In a statement, the local authority confirmed the increase will also apply to hostel rents, gypsy/traveller site pitches, garage and garage site rentals, and caretaking and CCTV services.
For the year 2014/15, the national average for council rent increases was 3.77%.
Meanwhile, sheltered housing tenants remain subject to a weekly charge for sheltered warden services and these have been frozen for the fifth consecutive year.
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Last year (2014/15), the Highland Council spent £15.5m on repairs and maintenance, while investing £17.5m in improvements to meet the Scottish Housing Quality Standard for existing houses. A further £23m was also used to build new council houses.
William Gilfillan, Director of Community Services, explained: "In order to provide best value for tenants, we will continue to identify annual efficiency savings aimed at reducing unit management and maintenance costs without compromising service quality. The increase is lower than the Retail Prices Index (RPI) which was 1.6% in December."
The news has been welcomed by the Chair of the Community Services Committee, Graham Mackenzie, who said: "Most welfare benefits for the coming year will increase by 1.2% and council rents increases must remain affordable. The 1% increase will be welcome news for council tenants."
(JP/IT)
