This study utilizes variation in the likelihood of living in a dormitory at a large, public university created by the school's rules regarding on-campus residency to investigate how much dormitory residence affects student outcomes during college. Using an instrumental variables methodology, it finds that, for the average student, dormitory residence during the first year has no effect on student retention but does have a positive effect on student grade point average. Further analysis suggests that dormitory residence is beneficial to more academically marginal students by reducing the likelihood that students have poor academic performance during their first year.