A dozen veterans fear they will be made homeless after they were threatened with eviction from their homes.
The former military and Navy personnel, who have conditions including post-traumatic stress disorder, have been told they will have to leave their one-bedroom flats in Bolton after the council decided to stop paying the landlord.
The veterans living in Constellation House said they felt they would be treated better if they were asylum seekers, after they were issued with eviction notices from the supported accommodation earlier this month.
The proposed evictions were triggered after Bolton council decided to stop paying housing benefit to Qualitas Housing because it concluded the supported accommodation did not meet requirements.
The eviction of the veterans, including former members of the Royal Signals, the tank regiment and the Navy, prompted speculation locally that the accommodation was being cleared to house asylum seekers.
While the housing association denied it was moving in migrants, saying it was effectively forced to make evictions because of the council, veterans claimed asylum seekers were prioritised over them.