The global climate crisis necessitates urgent action to reduce greenhouse gas emissions and mitigate the impacts of climate change in high-impact sectors like construction. With demand for low-income housing rapidly rising in India, there exists a unique opportunity to integrate energy-efficient design and planning to significantly reduce energy consumption. The development of Net Zero Energy Communities (NZECs) within low-income housing is critical in this context. This study conducted a comprehensive investigation into the design of an NZEC within an existing low-income housing community in the warm-humid climate of Visakhapatnam, India. The research involved an intensive field study focused on qualitative aspects, including spatial attributes, and residents’ energy and resource use patterns, which were assessed through Post-Occupancy Evaluation (POE). Quantitative analysis was conducted through simulations, evaluating the performance of the built environment and testing various design iterations. The findings highlight significant shortcomings in the community’s baseline design, particularly in terms of thermal regulation and airflow. By adjusting layout, street, and building-level parameters, the optimized design achieved a 50% reduction in ambient temperature at the layout level and enhanced street-level air velocity by 25–30%, creating a more comfortable and energy-efficient environment. This research provides an alternative approach to current low-income housing typologies, offering a viable model for scaling NZECs in social housing projects across India. The study’s outcomes contribute to India’s sustainability targets and demonstrate the potential of NZECs to meet the housing sector’s rising energy demands.