The seismic risk for an informal settlement in Merida (“La Milagrosa”) is qualitatively assessed and retrofit strategies are proposed. The buildings in the settlement are thoroughly examined and four prototype buildings are chosen to represent the vast majority of houses in “La Milagrosa”. The structural behavior of these buildings under gravity loads and seismic actions is deeply analyzed; this study shows that the prototype buildings are unsafe for gravity loads, and that the seismic demands largely exceed their capacity. Based on these conclusions, feasible retrofit strategies are proposed, together with draft recommendations for new similar constructions. Earlier quantitative estimative appraisals show that the proposed seismic strengthening measures can be very effective in reducing fatalities and economical losses, and are significantly more cost-efficient than reconstruction-based approaches. These conclusions might be generalized to many non-engineered urban areas in earthquake-prone regions of the developing world.