Abstract: Development of housing is essential source of improved livelihoods and well-being of rapid population growth. Data collected from a sample population of 186 respondents and that gathered through documentary analysis revealed that urban housing in Dar es Salaam is facing a challenge in accumulation for the population to improve their livelihood and well-being. The challenge is attributed to low capability level of the population in taping financial resource from micro institutions to expand housing. The conclusion made in the paper is enhancing capability of the population in accessing finance form micro institutions is crucial for them to expand housing which is the main source for improving their livelihood and well-being. The following are suggested to enhance the capability of the population: There is a need to provide training to the population on the use of the NGOs to get housing finance and also encourage them to become members of SACCOS. These will enable to access finance from the institutions another policy consideration is that there is a need for the officials of the finance institutions to visit the population in order to identify their needs related to housing improvement. Also there is a need to raise accountability in institutions involved in supplying water, electricity and land so as the population can acquire the facilities adequately as part in the housing development. Keywords: urban housing, low-income population, livelihood