With the aim of analysing more precisely the effects of LAPs on household livelihoods, the differences existing between rural and urban households and the use they make of their parcels should be considered. Although there is a tendency to associate rural households with the agricultural use of parcels and urban households with housing, the reality is more complex because there are frequently different types of parcel use regardless of housing. Regularization in rural areas consequently benefits not only agricultural property but also property where housing is located; these households are not always involved in farming production and in some cases carry out other economic activities. Similarly urban household parcels are not solely used for dwellings; in many cases they can house various economic and commercial activities.

To characterize households, twelve categories are proposed for evaluation related to their location (rural or urban) and parcel use (housing, business or mixed). For further information on the categorization of households, see the fact sheet on Diagnosis of households and characterization of the setting.