Many developing countries are undergoing rapid urbanization which often outpaces affordable housing development, aggravating housing shortages. To address this, some governments initiate affordable housing schemes, aiming to provide low-income households with access to affordable housing. This thesis examines the impact of government affordable housing schemes on housing affordability in Rwanda, focusing on their distributional impact and their targeted households. Using a mixed-methods approach, this study analyses data from the fifth Integrated Living Conditions Survey (EICV5) to investigate income distribution, housing expenditure patterns, and expenditure-to-income ratios across different population segments and geographical regions. Complemented by a review of government policies and institutional frameworks, the study contextualises its findings within consumer theory, New Institutional Economics (NIE), and Housing Supply Value Chain frameworks. The analysis reveals significant disparities in income and expenditure-to-income ratios (EIR) among households across different deciles and geographical regions. These variations are shaped by factors such as household economic capacity, institutional frameworks, housing supply value chain, and regional population density. The study emphasizes the importance of strict eligibility criteria for beneficiaries of affordable housing units set by the government of Rwanda to maintain long-term affordability and prevent speculation in government-supported projects. However, variations in target beneficiaries, income requirements, and housing costs across the ongoing affordable housing projects highlight the complexity of defining and implementing affordable housing in Rwanda. Some projects target displaced households, while others target higher-income brackets, challenging the local definition of affordable housing. This master’s thesis sheds light on the distributional impact of government affordable housing schemes in Rwanda, highlighting the challenges and opportunities in ensuring housing affordability for low-income households amidst rapid urbanization and evolving housing dynamics.