There is growing interest in the role of remittances on livelihoods of households in developing countries including those in Sub-Saharan Africa. We estimate the remittance elasticity for a number of macro- and micronutrients using a sample of rural households in Tanzania. Due to endogeneity of net income and remittances, special focus is placed on econometric analysis. One major finding is that remittances seem to be used as an investment in higher quality nutrients like proteins, vitamin A, vitamin C and calcium that lead to better development of especially the young population while net income is used for mere consumption. Remittances do not have any significant effect on calories, carbohydrates, and fats.