Nationwide efforts to protect the public against the health effects of secondhand smoke have prompted college and university administrators to adopt more restrictive smoking policies. Some campus officials are concerned that new policies will lead to student backlash, increased staff workloads, and an increased economic burden. To understand the impact of smoke-free residence hall policies, we conducted key informant interviews and gathered archival data at 3 large state universities. The implementation of smoke-free residence hall policies imposed little economic burden. We noted positive impacts in several key areas, including decreased damage to residence hall buildings, increased student retention, and improved enforcement of marijuana policies. Increased costs, such as the purchase of outdoor cigarette receptacles, were outweighed by the benefits. Findings from this study should encourage college and university administrators to enact smoke-free residence hall policies. (Contains 2 notes.)