This study tested the feasibility of on-site resettlement based housing project where it applied rnaffordability as an indicator. For the purpose of applying the test it used a slum locality around rnAbinet area in Addis Ababa, Ethiopia as a study case in point. Abinet is located in Addis Ketema rnSub city (among the 10 Sub Cities of Addis Ababa) of Wereda 01 (among the 116 Woredas in Addis rnAbaba where a Woreda is the smallest administrative unit). Abinet is one of the old inner-city rnneighborhoods of Addis Ababa. The study employed housing expenditure-to-income ratio to rndetermine housing affordability and discounted pay-back period method as a financial tool to testrnthe feasibility of the project. A to scientific sampling scheme was applied to select representative rnsamples from which data was collected by using mixed instruments including site visit, semi rnstructured questionnaire, key informant interview checklist, literature review schedules and other rntechniques. Accordingly, these instruments were administered on 113 randomly selected rnrespondents and 10 key informants in addition to an adequate mix of literature or appropriate rnreferences as secondary data sources. Processing and analysis of data was made by using SPSS rnwhere generated statistics like frequency and percentages were made use of. Additionally,rnethnography and narrative approaches were also applied. rnThe findings of the study indicated that, on-site resettlement is a successful scheme. Broadlyrnspeaking, given the findings and analyses of this study, on-site resettlement is seen as an important rnpart of inner-city slum renewal strategy that it maintains socioeconomic wellbeing of the residents rnwhile providing affordable housing for all income levels, improving the physical condition of slum rnareas in addition to changing the image of the city thus fostering livability and better times. rnAccording to the analysis of sampled respondents data, discounted pay-back period of the project rnis three years and four months where it is found that residents have the motivation/willingness and rnthe ability to finance their own resettlement.