Following a critical review of halfway house outcomes studies, the authors concluded that the effectiveness of halfway houses in facilitating the independent functioning of psychiatric clients in the community is open to question. It appears that because major deficiencies in the areas of autonomous atmospheres, employment training and community adjustment are often concealed by limitations in statistical indices of success. Further research is necessary before more definitive conclusions can be drawn related to the effectiveness of psychiatric halfway houses. Specific, suggested requirements for future research efforts are presented.