The appropriateness of the use of single room occupancy (SRO) housing for persons with a mental illness is examined, along with the financing and management of SROs, and the provision of mental health services to SRO residents. SROs allow residents personal freedom and privacy, and they offer a sense of community that is capable of meeting a variety of needs. Proper management of SROs is essential to their success. Overall, SROs are found to be a viable source of housing and should be considered as one of several alternatives available to persons with a chronic mental illness.