In an early definition of environmental quality, satisfaction is one of the key criteria by which the extent of environmental quality may be determined - an environment of high quality conveys a sense of well-being and satisfaction to its population through characteristics that may be physical, social, or symbolic. Assessment of the factors leading to satisfaction and dissatisfaction from the residents’ point of view can be used as criterion for the planning and design of urban development projects. This research was undertaken in the Navab neighborhood of Tehran. Data collection was conducted through a field study using a questionnaire filled in by a sample of 270 residents. Data analysis was also conducted using SPSS software. Analysis of the results shows the residents’satisfaction with their houses to be at a mid-level; in the theoretical mode it was estimated to be 3. Factors including the satisfaction with residential units felt by their residents show that full satisfaction was only expressed on the level of security of the residential complex. The factor of "relationships among neighbors" was estimated at a mid-level. Other factors such as the facilities of the residential complex, landscape and view, and the physical significance of the complex were rated with dissatisfaction. The results of factor analysis support this experimental model by high level (89%). This was concluded from a literature review of similar subjects. On a factor analysis of personal and family variables and their impact on satisfaction levels expressed by the residents, none of these variables had any effect.