Nowadays, empowerment is being considered as one of the most applicable ways regarding development achievement. This is more applied to vulnerable rural peasants. It is argued that development without empowerment considerations in general namely as far as the rural settlers are concerned is an incomplete concept. Targeted subsidy could be very influential regarding empowerment of the rural settlers which is the main contribution of this paper. The research method has applied as well as analytical and descriptive nature. Data gathering was done through both survey and documentation procedure. It is followed by distributing questionnaire and conduction of personal interviews of household heads. As such, 10 villages (35%) out of 28 villages located in Jaider district of Poldokhtar were selected. Furthermore, 80 households were interviews via random stratified sampling technique. This is followed by application of SPSS and Wilcoxon non-parametric statistical test. This study suggests that there exists positive relationship between the received targeted subsidy and economic empowerment level of the rural settlers. That is one could observe relativity high purchasing power, increase in saving, reduction of poverty and increase in household welfare. However, the reductions in arable land, as well as decrease in agricultural investment level, high inflation and mortgages are among the main important negative impacts.