The community adjustment of 195 consumers of supported housing and residential housing programs were compared over a two year period. The housing stability and rates of psychiatric hospitalization for consumers of these programs were compared while controlling for consumers’ personal characteristics, social support, clinical conditions, environmental conditions of their homes, housing interruptions, and mental health services. The costs of program services were based on agencies’ reported per diem estimates for staffing. Rent and utilities were estimated by agencies that provided housing and imputed from census data when information was unavailable. Consumers in each of the programs achieved similar rates of housing stability and psychiatric hospitalization. Supported housing programs were less expensive than residential programs. This study demonstrates that consumers of supported housing model can maintain similar rates of community tenure and residential stability as other programs and for less cost.