Although the majority of elderly persons are, and perceive themselves to be, in good health, health status differs by residential location, with a higher proportion of nonmetro elders reporting their health as fair or poor (35 percent) than metro elders (29 percent). The nonmetro elderly are also more likely to have certain chronic conditions, such as arthritis, that are clearly associated with poorer physical functioning. Differences in elders’ self-assessments of health and physical functioning remain evident when other factors, such as age, race, social support networks, income, and education are accounted for. The nonmetro elderly use less health care (compared with metro residents) than is commensurate with their health status. This suggests that there is a gap between the nonmetro elderly's need for care, based on their poorer health status and lower socioeconomic standing, and the availability of services to meet this need. This report uses data from the 1984 Supplement on Aging to the National Health Interview Survey to describe the nature and magnitude of differences in health status and use of health care services by the older population, by place of residence.