Rural-urban migration is considered one of the main reasons for rural decline, but the links between out-migration and rural settlement change are not well understood. This study explores the microimpact of out-migration on rural livelihoods and housing strategies in Southwest China. It is based on the results of a survey with 411 respondents. A cluster analysis revealed five distinct types of rural households considering their ways of migration and livelihoods. Only one of them depends on agriculture, whereas the others are characterized by different kinds of migration and off-farm activities. This study provides in-depth insights into the microimpact, thus informing future rural development policy.