The two major types of housing tenures that exist in Ethiopia are owner-occupied and rental occupations. Within the rental occupation, Kebele rented housing units have been created since the coming of the Derg to power and the issuance of proclamation No. 47/1975 which brought about government ownership of urban land and extra houses. Since then, all government owned houses in the country, which have less than 100 Birr rent per month, are administered by Kebeles. However, due to old age and lack of maintenance, these Kebele rented dwelling units are deteriorating from time-to-time. Hence, the main objectives of this study are, to compare and contrast the existing conditions of owner-occupied and Kebele administered dwelling units in Bahir Dar, the capital city of the Amhara National Regional state and to recommend some possible measures that would help in the formulation of the national housing policies and strategies. In order to obtain the primary data necessary for the study, stratified and systematic random sampling techniques were used to carry out the questionnaire survey in the town. A total of 689 heads of the households were selected for the sample survey. The methods used to process and interpret the data obtained were percentages, cross tabulations, and mean values.