Analyzes the relationship of the housing allowance program to more conventional federally subsidized housing programs in St. Joseph County, Indiana, and Brown County, Wisconsin. This study examines the effects that competition between the programs might have on the HUD-subsidized housing stock, and recommends adjustments in the present HASE policy toward potential allowance recipients living in federally subsidized housing. Significant competition is found to exist only between the allowance program and the public housing and rent supplement programs. The study recommends leaving subsidies for public housing and the housing allowance program as they are now. For rent supplement projects, the study proposes that tenants occupying units in Sec. 221(d)(3) Market Rate Rent Supplements projects be allowed to choose to receive allowances if they pay market rent for their units, and that tenants occupying 221(d)(3) Below Market Interest Rate projects have that option once HUD establishes market rents for those units.