An adequate comfortable shelter is a significant human right and need. In Kuala Lumpur, the high demand for affordable quality housing for the urban poor has yet to be fulfilled. In order to meet the demand for adequate affordable housing for low-income households, the government has introduced numerous housing programs. However, anecdotal evidence suggests that most of this typical type of affordable housing may have design deficiencies that could affect occupants’ housing satisfaction. This paper critically reviews on housing policy, typology, and design issues for low-income housing in the context of Kuala Lumpur, Malaysia. This paper argues that there is a direct relationship between housing design and occupants’ satisfaction. Based on the review, it can be recommended that housing design for low-income people should consider factors such as safety, local climate, privacy, sufficient space, layout planning, culture, and social integration. Implications for the design of future housing for low-income people are raised and the need for the improvement of the ongoing research is identified.