Hurricane Katrina overwhelmed the government's capacity to provide adequate long-term housing to disaster victims. In response, Congress created a pilot program to test the efficacy of permanent disaster housing prototypes known as "Katrina Cottages." However, implementation was hindered by a lack of planning and local opposition. In Mississippi, residents feared adverse impacts to property values, citing poor design quality resembling manufactured mobile homes as a primary concern. Using standardized local tax appraisals, this study finds that Katrina Cottages are valued significantly higher than manufactured homes. It further reveals no significant difference between Katrina Cottages and single-family homes. It also suggests a strong relationship between value and smart growth design metrics, including density, walkability, and urban context. However, it shows that Mississippi Katrina Cottages are valued lower than those in Alabama and Louisiana. Furthermore, analysis of community demographics suggests Katrina Cottages may be less valuable in wealthy communities.