A request to develop instruments for assessing local foster care costs provided the impetus to examine family foster care in depth. Based on data from original studies done in Delaware and nationally during 1974-75 and on review of other research available, the study examined the history and connection of foster care to rural areas in the United States, the current situation for foster care in rural America, and the adaptations necessary to use current data in estimating the costs of foster care in rural areas. Comparison to other child and family services in rural areas and issues relating to the quality of life in rural settings were also examined. In order to check the usefulness of available data and to get a current perspective on costs for foster families, a random sample of 200 Delaware foster parents was interviewed. An analysis comparing rural, rural non-farm, suburban, and urban foster family views was conducted. Among the findings were: most parents felt that Delaware's standard payment system for foster care did not cover all areas of direct costs, especially food, clothing, and housing expenses; many felt none of the schooling and recreation expenses were covered; these perceptions were similar regardless of location; foster parents, in general, stated that their perception of costs for foster children were more similar to natural children than different; national cost studies did show rural-urban differences in costs by region of the country. (NQ)