Acute housing poverty and low housing affordability among low-to-medium income households have become challenges in the pursuit of a harmonious society in China. Promoting housing subsidies and stimulating investment on affordable housing have been at the center of China’s housing policy. This paper analyzes the correlation of affordable housing program in Beijing with household affordability of adequate housing and accessibility to public services, which include elementary and middle schools, hospitals and public transportation. Economic and Comfortable Housing is studied based on unique database of eligible household and affordable housing projects. We find that the program fails to make housing affordable and accessible for eligible households. The implications of housing policy design in the context of the economic and social well-being of targeted households are highlighted in the study. Housing means more than just shelter, it also represents long-term wealth through which household’s economic and social well-being can be strengthened. For the low- and medium-income households in the subsidized housing, housing is not only a solution to their habitation problems, but also a solution for improving their life through its conjunction with public services, which impact on their opportunities in education, health and employment—the means to function effectively in society. Social function of affordable housing is very important because poverty of people is not simply due to the absence of financial resources; it is also because of a lack of the ability to function effectively in society (Sen 1992, 2001). Social support of affordable housing not only helps household get by in life, but also more importantly it helps them get ahead in life to improve their economic and social status (Curley 2005).