Research has documented that foster children have high rates of school mobility, and it is widely believed that this contributes to their poor educational outcomes. Recent US policies address this by attempting to minimize schools transfers for foster children; however, these policies have largely ignored the issue of school quality. The current study uses descriptive statistics and mixed factor analysis of variance to assess (i) the quality of schools attended by elementary‐aged US foster children living in a large, urban school district (n = 683); (ii) their rates of school mobility; and (iii) differences between the quality of schools located in their birth parent vs. foster placement neighbourhoods. Results indicate that these foster children were attending poor performing schools and had high rates of school transfers. For the sample as a whole and specifically for African‐Americans and Hispanics, schools located in placement neighbourhoods were higher performing than schools in birth parent neighbourhoods. For white children, however, birth parent schools outperformed placement schools. These findings highlight the importance of considering school quality, not just continuity, when making educational decisions for children in out‐of‐home care.