The findings of multiple regression analysis indicated a conceptual model in which family violence and economic distress significantly contributed to behavior problems among homeless children, leading to social avoidance and isolation. As expected, homeless mothers were subjected to high rates of interpersonal violence, which were correlated with their children’s behavior problems and expressions of aggression within peer relationships. Data were obtained from interviews with 93 sets of mothers and children who were low-income or homeless and were recruited for the study through snowball sampling. Interviews were conducted with both mothers and children separately and focused on income and housing information, level of psychological functioning, quality of social support and relationships, maternal reports of violence, child behavior problems, friendship relationships, victimization experiences, child depression, and attitudes toward peers. Implications of the findings are discussed and include the need for homelessness intervention programs to address issues of violence. Figure, tables, references