Population growth rate, urban migration, and natural disasters are making, the chronic shortage of housing in developing countries, more complicated and strenuous. The case of Bangladesh is no different. However, though the growth rate of Chittagong is high yet due to various infrastructural and socio-environmental issues, the people of Chittagong are facing a housing shortage. In most cases, the development of informal sector housing is makeshift and unplanned and the consideration of the geographical, environmental, and ecological matrix is minimal. People who are in the informal sector and economically disadvantaged, cannot get proper shelter due to the shortage of housing or housing ingredients for the poor. This paper attempts to find a way to mitigate the shortage of informal sector economically disadvantaged group housing within the current market scenario. A mixed-income group housing subsidized for the lower-income category by profit sharing from other categories is recommended to make it a win-win approach.