jats:pAffordable housing for the low-income population, who mostly live in slums, is an endemic challenge for cities in developing countries. As a remedy for the slum-free city, most of the major metropolis are resorting to slum rehabilitation housing. Rehabilitation connotes the improved quality of life that provides contentment, yet what entails residential satisfaction in such low-income situations remains a blind spot in literature. The study aims to examine the factors affecting residential satisfaction of slum rehabilitation housing in Mumbai, India. Here, the moderation effects of sociodemographic characteristics between residential satisfaction and its predictors are elaborated using a causal model. Data on residents’ perception of the residential environment were collected from 981 households in three different slum rehabilitation housing areas spatially spread across Mumbai. The causal model indicated that residential satisfaction was significantly determined by internal conditions of dwelling resulting from design, community environment and access to facilities. Gender, age, mother tongue, presence of children, senior citizens in the family, and education moderate the relationship between residential satisfaction and its predictors. The need for design and planning with the user’s perspective is highlighted to improve the quality of life.</jats:p>