Kwadungan Permai housing is subsidized housing in the industrial zone of Kediri Regency aimed at helping low-income people. This phenomenon has an impact on socio-economic conditions and increases the potential for environmental problems that can determine settlement environmental quality. The high demand for settlements supported by rapid population growth without being accompanied by land expansion will cause environmental and social problems. Therefore, a study on the settlement environmental quality that includes socio-economic conditions is needed to formulate regional policies on settlements. This study aims to (1) assess the settlement environmental quality, (2) analyze the relationship between socio-economic conditions and the settlement environmental quality. Data obtained from structured interviews with respondents selected by stratified random sampling. Data were processed by scoring method and analyzed by mixed method. The results showed that Kwadungan Permai Housing was dominated by a moderate class 37%. All parameters of socio-economic conditions have a significant relationship with the settlement environmental quality. Then the bad quality class reached 32.9% and the good quality class reached 30.1%. The variables of the last education level and the level of income have a positive relationship, while the number of family dependents has a negative relationship.