The method lines() returns an iterator over the lines of a file.

File::open expects a generic, AsRef<Path>. That's what read_lines() expects as input.

use std::fs::File;
use std::io::{self, BufRead};
use std::path::Path;

fn main() {
    // File hosts must exist in current path before this produces output
    if let Ok(lines) = read_lines("./hosts") {
        // Consumes the iterator, returns an (Optional) String
        for line in lines {
            if let Ok(ip) = line {
                println!("{}", ip);
            }      
        }   
    }
}

// The output is wrapped in a Result to allow matching on errors
// Returns an Iterator to the Reader of the lines of the file.
fn read_lines<P>(filename: P) -> io::Result<io::Lines<io::BufReader<File>>>
where P: AsRef<Path>, {
    let file = File::open(filename)?;
    Ok(io::BufReader::new(file).lines())
}

Running this program simply prints the lines individually.

$ echo -e "127.0.0.1\n192.168.0.1\n" > hosts
$ rustc read_lines.rs && ./read_lines
127.0.0.1
192.168.0.1

This process is more efficient than creating a String in memory especially working with larger files.