The study compared available placements, related services, and teacher qualifications for severely handicapped students in rural and urban areas of 190 school districts in 46 states. The effects of two predictor variables, percentage of urban population and median family income, on the following dependent variables were examined: student placement, proportion of related services given to severely handicapped students, number of teachers serving severely handicapped students, degrees held, and certification of teachers serving this population. Among findings were these: that severely handicapped students in urban districts were more likely to be placed in self-contained classrooms or special schools; that rural schools did not have a full continuum of services available for their severely handicapped students; and that rural and urban teachers appeared to be equally qualified. Educational implications are drawn and include the need to design instructional programs specific to placements in both rural and urban settings and the need for state educational agencies to make available to rural students all needed services. (Twenty-eight references are listed.) (DB)