The market-based approach of delivering affordable housing has led to a net loss of traditional public housing and an increase in alternative subsidized housing options. For poor, physically frail older adult residents, subsidized housing and its associated services and support provide an important safety net. This article explores the implications and consequences of this movement for low-income seniors. Specifically, we look at the past and current housing policies, the focus on public-private partnerships, and the transition toward mixed-income communities. The article ends with suggestions for protecting vulnerable older adult populations in a market-driven arena.