While it is recognised that diversity in housing tenure options is a key enabler for low-income families to enter and engage with the urban economy, public housing providers and policymakers claim there are several impediments to the provision of subsidised rental housing. What is the nature of these challenges? What will it take to trigger and sustain a rental housing market in Indian cities that is both public and social? Through an analysis of current public policy recommendations and relevant cases of public provision of rental housing, this paper unbundles these challenges, focusing on the management of social rental housing, tax and governance issues, and lastly, fiscal challenges and new opportunities in rental housing.