The aim of this study is to describe the living conditions of homeless people in the cities of Gothenburg and Karlskrona in Sweden and to analyse their level of social inclusion and social exclusion. The empirical basis of the study was interview responses from 1 148 individuals in connection with initial contact with municipal housing programmes. The study clarifies that people in these programmes are a heterogeneous group in terms of gender, background and current living situation. A majority of the homeless people are living in difficult conditions and are in extremely exposed positions. Three different groups emerged in the analysis of the study population: individuals who are socially included (15%), marginalised (65%) or socially excluded (19%). The article also discusses the various groups’ discrete needs and their implications for preventive as well as more interventional actions on the political and practical levels.