Based on the 1979 Annual Housing Survey, the elderly--especially the rural elderly--are more likely than other groups to live in inadequate housing. Housing was defined as inadequate if it had one or more of the following flaws: incomplete plumbing facilities, incomplete kitchen facilities, leaking roof, holes in walls or ceilings, and exposed wiring. Fifteen percent of rural heads of household lived in inadequate housing compared with eight percent of the urban elderly. Most elderly heads of household were white, married males aged 65-75 years old with less than a ninth grade education. Of the inadequate housing units of the rural elderly, 45% had two or more structural flaws and were classified as severely inadequate. Comparing four regions (West, North Central, Northeast, and South), the rural South had the highest percentage (10%) of severely inadequate housing, especially among renters. A major factor contributing to housing problems of the elderly was low incomes. Twenty-nine percent of the rural elderly had incomes below the poverty level compared with 10% of the rural nonelderly. Housing affordability was a problem for many rural elderly including those with inadequate housing, who spent more than 30% of their incomes for housing in one case out of every five. (JHZ)