Community-based breeding programs (CBBP) have been viewed as attractive breeding strategies, resulting in significant improvements in the performance of small ruminants and the income of producers in many parts of the world. As part of these interventions, a community-based breeding program was implemented on Abera sheep mostly reared in the region since 2013. An interview was conducted with 188 sheep producers (91 CBBP members) and 97 non-CBBP members) to know the contribution of CBBP in terms of sheep flock performance improvement and income of sheep producers in the Hula and Dara districts of Sidama region. Focused group discussions with 6–8 individuals in each breeder cooperative were separately made to complement the survey results. CBBP households owned significantly (p<0.05) larger sheep heads (7.28 versus 4.99) than non-CBBP members. CBBP households further had more market participation, sold significantly (p<0.05) higher average sheep (2.4 versus 1.3), and consequently earned significantly (p<0.05) higher annual income (ETB 3877) than non-participating (ETB 2007) households. The majority of CBBP households (85%) observed a better twining rate for their sheep flocks since they joined the breeding program. The average age of 8.63 months of a lambing interval, 7.9 months of ram maturity for breeding, and 10.42 months needed for a ram to achieve market age before implementation of the breeding program were significantly (p<0.05) reduced to 7.31 months, 6.2 months, and 7.69 months, respectively, after sheep producers started a selective breeding program. Low market integration (0.28), sheep mortality (0.21), feed shortage (0.20), low institutional support and coordination (0.17), and managerial problems of the committee (0.13) were major problems with the ranking index in parenthesis. Despite the significant contribution of the breeding program to sheep producers, the current study found weak and unsustainable institutional support for proper breeding ..........