Public rental housing is the social security housing which is used to meet the basic housing needs of the urban lower-middle income families. The issue of funding sources is an important problem in the operation of public rental housing, which will be studied in this paper. In the research process, the authors create game model, analyze the interest relationship between the actors involved in public rental housing, find the optimal balance, and then design the incentive and restrictive mechanism according to the conditions by which the optimal balance can be achieved, lead the actors’ rational decisions to a direction on which it is beneficial to the people’s livelihood.