This article examines the financial feasibility of developing housing for the mentally ill. It reviews the financial profile of 153 properties developed for persons with mental illness by five nonprofit housing organizations that participated in the Robert Wood Johnson Program on Chronic Mental Illness. The findings indicate that while this type of development requires greater management attention than conventional housing, there is little that separates the financial profile of housing for persons with mental illness and that of market-rate housing for low-income tenants. The 153 properties, developed between 1988 and 1992, continue to operate and serve individuals with mental illness. The nonprofit housing developers, none of whom had previous experience with housing developed for the mentally ill, continue to operate and thrive. Housing for mentally ill persons can be financed, developed, and managed successfully. The primary challenges in developing and managing housing for the mentally ill appear to be securing sufficient funding and capable staff and creating effective partnerships with service organizations to assess and meet tenant needs.