Abstract: The rural homestead is an important part of rural construction land, and it is legitimate property rights of rural households. By employing the household survey data of 4 districts and 4 counties in Wuhu City, this paper analyzed the farmer awareness and satisfaction of homestead policy, ways informed of policy information, the acquisition and transfer of farmers homestead and effect on farmers'welfare, and the residential land Market governance, et al. The results showed that, farmers had low awareness of policies and property rights, and there was a large deviation in it. The farmers with higher satisfaction with current policies, but attentions also should be paid to the rural homestead farmers differentiated management and protection of property rights. The inheritance and application for homestead were the main ways, there were relatively small amounts of homestead circulation being taken in the market. An appropriate transferring price formation mechanism was absent in the reality. And utilization and circulation of the rural homesteads into market should be promoted actively by the government, because of the importance and reality. Finally, some suggestions were put forward in the paper. The publicity and training of rural land management laws, regulations and policies should be strengthened. More attentions should be paid to the interests and demands of farmers in rural homestead policies. The policies should be responded positively to the implementation of various problems. Some attentions must be paid to the role of rural collective organizations in rural homestead management. The government should openly commitment to the full protection of the homestead property rights, and establish a sound mechanism residential land, provide public policy support and transaction services.