This study performed a panel logit analysis to explore factors on the poverty status of households with the mentally disabled using the Korean Welfare Panel Data waves 1~7. The analysis shows that, in the fixed effect model, the employment status of the mentally disabled members, the number of employed members, and the amount of public assistance are statistically significant, while that, in the random effect model, the employment status of the mentally disabled members, the number of household members, the number of employed members, and the amount of social insurance benefits are. In addition, the Hausman test shows that the fixed effect model is more appropriate than the random effect model. Therefore, the policies which support the mentally disabled with supportive and non-discriminant jobs and expand the National Basic Livelihood Security beneficiaries by considering medical expenses are needed to move the poor households with the mentally disabled out of the poverty.