The analysis reported here suggests that the presence of a college is associated with house prices that are about 2.7 percent higher. However, the effect is caused only by 4-year colleges, and the primary source of the effect is the degree to which the college is residential. Interestingly, the size of the college as measured by enrollment has no effect on house prices. While the results indicate that municipalities with a community college have a tax base that is 11.6 percent higher, evidence to support the claim that colleges cause the tax base increase is weak. Finally, neither the size of the college (measured by enrollment) nor the degree to which the college is residential has an impact on the tax base.