A National Assembly committee is calling on the Welsh Government to abolish the concept of 'priority need' for housing if it wants to reduce the number of people sleeping rough in Wales.
It says this will give all homeless households, including rough sleepers, the right to housing.
The Committee recommends that all rough sleepers should be automatically assessed as being in priority need until the system changes.
Many rough sleepers who have poor physical or mental health are not currently classed as priority need.
Figures show there has been a steady rise in the number of rough sleepers in Wales, although the precise scale of the increase is unknown.
A homelessness charity has urged Welsh Government to act on the report.
The Committee's recommendations will now be considered by the Welsh Government.
The Welsh Government said they are focused on preventing homelessness