Informal land rental markets were emerged in the form of share cropping during the past times. Currently, it was expanded in to three types of payment arrangements, which are payment in cash, payment in kind and share cropping. However, the socio economic implications of these markets were not well studied and known. Due to this reason the communities in the study area were faced different socio economic challenges due to the expansion of informal land rental markets. Therefore, this research was conduct to investigate the socioeconomic implication of informal land rental market in Dangur Woreda. By using qualitative and quantitative data collection methods, the data was collected from primary and secondary sources and it was analyzed by using SPSS20 software and excel word sheet. The result shows that informal land rental markets have both positive and negative socio-economic implication in the study area. It’s some of negative socioeconomic implications were expansion of thief, transportation crowded, competition for water, shortage of medicine, forest resource destruction, conflicts arose between ethnics, clans and farmers and soon. These negative implications were the result of informality of land rental market while informality of land rental market arises from governments restriction on the amount of land to leased, cost incurred during process of formality and lack of awareness about how to formalize it. Having negative socioeconomic implication informal land rental market expansion have been supported by the lesser and lessee due to the economic benefit gained from it. Even though informal land rental markets have positive economic benefit, their socio economic and environmental implications were serious and affect the society negatively. Therefore strengthening land administration system and avoiding restrictions on the size of land and minimizing the cost incurred during formality would help the community to formalize their land rental market interaction, so as the negative socio economic implications could be managed easily and positive implications would be promoted to achieve economic growth in the study area. Keywords: informal land rental market, socio-economic implication, contractual agreement, lesser,lessee.