The objectives of this study were to determine the direct effect of an apartment manager's leadership style and the direct and indirect effects of functional health, morale, and social activity on residential satisfaction using a path model probability sample of 210 elderly residents from 19 federally subsidized apartment complexes.The path model positioned functional health, morale, and social activity as exogenous variables with leadership style as the intervening variable. Residential satisfaction was the dependent variable. Separate analysis was conducted for respondents with less than nine years of education and for those with more education.The total effect of every bivariate relationship was greater for those with less education. The total effect of leadership style on residential satisfaction was .446 for those groups with less education and .267 for the group with more education; for social activity, .371 and .178; for functional health, -.093 and .014; and for morale, .134 and .019, respectively. The R 2 for the group with less education was .327 and .102 for the group with more education.The leadership style of the apartment manager had a significant direct effect on the residential satisfaction of the respondents in both groups. Social activity had a significant direct effect on the residential satisfaction of those respondents with eight years or less of education. Functional health had a negative total effect on residential satisfaction for both groups and morale had a positive, though minor, total effect for both groups on residential satisfaction. The residential satisfaction of those with less education was more strongly affected by both the direct and indirect effect of the independent variables than was the group with less education.