As school quality improves, does the housing market reflect buyers' perception of that change? In 1993, Texas implemented Senate Bill 7 (S.B. 7), commonly known as the Robin Hood financing of local schools, wherein some of the property tax revenues from wealthy school districts are redistributed to less wealthy districts. Data from Dallas County indicate that resources for school districts were equalized as a result. This study relied on hedonic price models before and after S.B. 7 to determine whether convergence in housing prices occurred between property-rich and property-poor neighborhoods. We found that state aid, based on changes in school finance reform, is associated with a reduction in the difference in hedonic house prices. However, the convergence results from a reduction of the hedonic price in wealthy districts, coupled with some price change in poorer districts. These findings confirm the existence of school-based premiums in housing markets when funding is unequal and demonstrate that the housing market appears to reflect changes in buyer perceptions of school quality. (Contains 2 figures, 5 tables, and 38 footnotes.)