Study objectives were to: derive a set of variables originating from background status attainments and proceeding through marital behavior via a literature search; develop models of marital happiness and family satisfaction by residence; delimit specific variables contributing to marital happiness and family satisfaction by residence within the three residence model specifications; and empirically construct a theory of marital happiness and family satisfaction by residence. Data were derived from the total adult noninstitutionalized population of the U.S. (survey respondents were categorized as follows: 135 rural nonfarm, 343 rural farm, and 1,023 urban residents). An attempt was made to interrelate bivariate relationships identified in the literature search in a causal sequence utilizing symbolic interactionism and Blau and Duncan's theory of intergenerational status transmission as the overall framework. The key variables reflecting model differences across residences were identified as: respondent's perceived financial situation at age sixteen, respondent's education, and respondent's general happiness for the rural nonfarm model; respondent's father's occupational prestige, respondent's general happiness and respondent's job satisfaction for the rural farm model; and respondent's education and general happiness for the urban model. (JC)