Problem of inadequate housing faced by low income earners in urban areas is alarming. This has been attributed to poor implementation of public sector housing policies across the globe especially in developing economies. The study assessed the issues and challenges in the implementation of sustainable public sector housing policies in Port Harcourt metropolis. Objectives of the study are to identify public sector housing policies in Port Harcourt metropolis; identify government agencies implementing public sector housing policies; identify issues and challenges of implementing public sector housing policies; identify interventions by government in public sector housing policies and provision; and recommend appropriate physical planning and policy measures for efficient implementation of public sector housing policies in the study area. The study adopted qualitative approach and case study research design. The study employed purposive sampling technique and a total of 34 key informants comprises officials of government agencies both federal and state levels and experts in the built environment were interviewed for collection of data. The study found there are public sector housing policies existing that have been used to implement public sector housing in the study area. The study also identified both federal and state governments agencies are responsible for the implementation of public sector housing policies including Federal Ministry of Lands, Housing and Urban Development, Rivers State Ministry of Housing, Rivers State Property Development Authority and the Federal Mortgage Bank of Nigeria. The study revealed land tenure system, political system, institutional and personnel, policy guidelines, bureaucratic bottlenecks from political office holders, government unwillingness, corruption, embezzlement of public funds, lack of continuity and lack of unified framework. Some of the interventions made by government to implement public sector housing policies are acquisition of land for easy access, provision of housing schemes for low cost housing, and public private partnership introduction. These interventions have produced public sector housing schemes (estates) amount to 17 housing estates in the study area by the federal and state governments. The study has suggested the following recommendations including government should review the extant policies on public sector housing in Nigeria and Rivers State Government should domesticate these policies, so as to meet the current realities and situation confronting policy implementation and delivery of public sector housing; sincerity of purpose in the government intervention efforts to do away with the challenges inherent in the implementation of the public sector housing policies; strengthening and coordinating of synergy between the government and the private sector in housing development; planning schemes of new public sector housing should be prepared at strategic locations; and adoption of policy measures outlined in the study should be practically carried out to ensure the smooth implementation of the public sector housing policies.