A Dissertation Submitted in Partial/Fulfilment of the Requirements for Award of the Degree of Master of Business Administration in Corporate Management (MBA.CM) of Mzumbe University.Tanzania like other developing nations in the world has weak housing finance mechanism and property market. Nearly the entire urban housing stock has been constructed by individual households through their own savings and loan arrangements from their friends and relatives as the majority do not have access to formal finance. Therefore, this study intended to explore the sustainability of the low cost housing projects under PSPF. Specifically, the study aimed to; examine how sustainable is the low cost housing project under PSPF; identify the factors that are affecting low cost housing projects under PSPF, and establish ways of addressing challenges facing low cost housing projects under PSPF. The study used a case study research design with both qualitative and quantitative approaches. The target population of this study includes 50 employees from investment and estate departments who have information on the houses constructed by the PSPF in the outskirt of Dar es Salaam city in an area called Buyuni, Chanika, within Ilala Municipality. The purposive random sampling was used to select a sample size of 44 respondents working with PSPF. Findings revealed that the low cost housing project under PSPF was not affordable to the targeted market. Findings also revealed that building materials, infrastructure and housing, cost of land, and availability of land were the common factors affecting sustainability of the low cost housing project under PSPF. Furthermore, findings show that the rising of the cost of land, lack of government incentives, complex land acquisition process, and high building materials cost were the major challenges facing the low cost housing project under PSPF. The study concludes that the low affordability of the low cost housing project under PSPF to the targeted market was attributed by the housing reform that make houses more expensive to low-income earners. The study recommended that the government should assist the development of off-site infrastructures, elimination of cultural barriers, use of locally available construction ix materials and the adoption of new technology. The financial sector also should offer low-interest rates for building development to enable both building developers to increase supply of low cost housing and the low-income earners to gain access to mortgages.