The gap in median household income increased between metro and nonmetro households between 1979 and 1999. At the same time, inequality in metro household income distributions increased faster than among nonmetro households, resulting in nonmetro income inequality essentially identical to that in suburban areas and lower than in central cities. The continuing disparity in income levels by race/ethnicity and residence may reflect the local and race/ethnic-specific consequences of industrial restructuring, globalization, and changing household structures.