Based on the panel data of low-income rural families in County A from 2014 to 2022, this study performs a difference-in-difference analysis using a two-way fixed effect model to examine the impact of the relocation program in ecological reserves on the vulnerability of low-income farmers. It is found that the relocation significantly reduces the rural families’ vulnerability in general, by 22%. Based on the decomposition of vulnerability and causal analysis, it is revealed that, compared with low-vulnerability farmers and low-volatility farmers, the positive impacts of relocation on high-vulnerability farmers and high-volatility farmers are reduced by 16. 3% and 13. 0% respectively. Lack of human capital makes it difficult for these families to adapt to the labor market after relocation, resulting in a slower livelihood transformation and thus a more gentle decline in vulnerability. This conclusion provides important insights for the government to formulate targeted post-relocation assistance policies.