This report presents a method for measuring the cost of foster family care in local areas through use of governmental and other available data on costs relating to non-foster children. The cost measurement procedures used, for which 32 pages of tables and worksheet forms are provided, are designed to measure average costs in a particular area (excluding social service and agency administration costs). Direct and indirect costs are defined and discussed at length. The source of direct cost data presented is a U. S. Department of Agriculture estimate of the direct costs of raising a child to age 18, at economy, low cost and moderate cost levels, for rural farm, rural non-farm and urban families in the four U. S. census regions: North Central, South, Northeast and West. This estimate, based on 1960-61 data, is adjusted through the government's Consumer Price Index (tables included). Average costs are given, per region and degree of urbanization, for: food, clothing, housing, medical care, education, transportation and other costs. Use of such existing data bases is strongly recommended for estimating direct costs, although local differences may necessitate some primary data-gathering. Local surveys may also be needed to determine the indirect costs (the dollar value of parental time). (BF)