Context and background               Residing in areas of flood risk informal settlements is more or less normal among low-income households in most cities of the developing countries. While living in such settlements present challenge to quality of life, many among the urban poor offer these areas.Goal and objectives:This paper analyses factors that drive urban residents to acquire land and build houses in flood prone areas. Msasani Bonde la Mpunga in the city of Dar es Salaam was selected as a case study area.Methodology:Data were collected using household questionnaires, key informant interviews, focus group discussion (FGD) and field observations.Reasons for opting land in marginal areas including flood prone sites include; proximity to workplaces, easy and cheap land access, convenient access to social services, high Proximity to low rental prices, and connections to neighbours and friends. Other reasons include; stringent procedures such as urban planning and house construction standards to acquire planned plots, poverty and little awareness about flood risks areas.Results:Whilst the findings, reveal that home builders’ decisions are shaped by multiple factors, the paper calls for rethinking the strategies and opportunities for housing land delivery for low-income households in urban areas.Key words-Risk, flood risk, informal settlements, Land acquisition, residence, risky decisions.