Virtually nothing is known about the characteristics used to select foster families. This study examined if and how psychosocial problems, income, education, race and the supply of and demand for foster families are related to the approval of families to foster and the placement of children. Families who were approved and who had a child placed had fewer problems and higher incomes than families who were not approved and who did not have a child placed. Income moderated the effect of problems on placement. Race, education, and supply/demand were not related to approval or placement. In many respects results support the efficacy of the selection process.