Effect of substitution Dy by Ho on the magneto-electric behavior of the compound Dy0.8Ho0.2MnO3 was investigated by the different methods of polarized and classical neutron diffraction and macroscopic methods. It is shown that substitution by Ho of 20% on the position of Dy do not change overall crystal symmetry of compound. It remains of Pbnm type down to the very low temperatures. Magnetic ordering, its temperature and field evolution was determined by the use of single crystal neutron diffraction and magnetization measurements. Chiral type of magnetic structure on Mn subsystem is confirmed below Tc ≈ 16 K. Using polarized neutron diffraction the 3-component character of rare earth magnetic ordering in Dy0.8Ho0.2MnO3 in contrast to DyMnO3 could be revealed. It was shown that doping by 20% Ho suppresses the spontaneous rare-earth ordering with its own propagation vector and provides the situation when two magnetic subsystems, manganese and rare earth ones have a coherent incommensurate spatial propagation. The influence of the external electric field on the magnetic chirality could be directly evidenced, proving strong magneto-electric coupling in multiferroic phase. The study of the electric polarization under similar temperatures and fields on the same samples provides the direct correlation between the results of the microscopic and macroscopic investigations.