There is a general consensus that Chilean's housing policies have succeed in decreasing the lack of housing due to a mass construction of social housing within the last few years, especially due to a significant number of subsidies from the government. However, due to the impact of rising land costs on the final build value, along with erratic urban policies, these housing developments have been located on the periphery of the cities and are socially detached from the rest of the city. This paper intends to present the Differential Subsidy to the Locations, which gives a reward to the best-located plots to help potential buyers finance their acquisition. It is not clear yet that this measure will succeed on it’s own, and it is necessary to analyze complementary measures such as management tools and urban planning.