One of the biggest challenges that face the development in developing countries now a day is Informal settlements. The phenomena of informal settlements urban sprawl is increasing each day, destroying cities, degrading quality of life, and eradicating urban fabrics. Which created a vital need to find new sustainable solutions for upgrading informal settlements in developing countries. One of the different approaches is affordable housing. Affordable housing is rarely discussed in relation to informal settlements upgrading. Although affordable housing introduces many new strategies in order to grantee low priced housing and upgrading techniques. Also, it is applicable for developing countries, since developing countries’ governments cannot afford to fund all informal settlements upgrading projects.