The present study seeks to organize the observations made in the area of research on the adjustment and quality of life of the mentally ill in treatment oriented and personal care homes, and of the mentally ill living with their families. This study assesses their validity by contrasting, in a 16-state sample, the social and clinical characteristics of severely mentally ill adults across five residential settings: (1) living in a supervised setting that is professionally staff; (2) living in a supervised setting that is not professionally staffed; (3) living in a non-supervised setting apart from family; (4) living with members of the family of origin; and (5) living with members of the family of procreation.