AbstractMany have argued that problems with housing contribute to the high relapse rate among chronic mentally ill patients. Evidence that homelessness is associated with rehospitalization suggests that interventions for housing can reduce relapse rates. In this study, the relative importance of housing services versus psychiatric factors as determinants of rehospitalization, emergency room use, and aftercare compliance is examined. The analysis investigates the relative importance of housing within a community that has high rates of homelessness versus a comparison community with low homelessness rates. Results indicate that when patients need both housing and psychiatric care, services for housing make the critical difference for community tenure.