The University of Tennessee residence halls have been considered a central component of the total university educational program. Although they play an important role in the socialization and development of students, the residence halls also have a considerable economic impact on the Knoxville community. Statistics from a study of the university's influence on the economic growth of Knoxville showed that in 1970 the university accounted for eight percent of the area's total personal income and over four percent of the area's employment. The residence halls and auxiliary enterprises accounted for 24% of the university's income in 1974. Approximately 95% of the Residence Halls Department budget was spent locally, while 93% of the revenue originated outside the Knoxville area. The impact of resident students' personal spending in the community was also found to be substantial. Although geographically specific, this study could be used as a model for conducting similiar research on the economic effect of college housing on a local community. (JAC)