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When demographic, human capital, and labor market factors were compared, young adults who were in poverty at the beginning of the observation period (age 25) were different from those who experienced poverty later during the observation period. The poverty exit rate estimates using the data with poverty duration information only from age 25 were different from those using the data with poverty duration information from pre-young adulthood (for those who were in poverty at age 25). Young adults living in rural areas had lower poverty exit rates than those living in urban areas; however, when other factors (described above) were controlled for, this difference disappeared. Using a two-way transit model that simultaneously assesses poverty exit and reentry rates, it was found that having had a health problem in a given year was associated with lower poverty exit rates and lower poverty reentry rates in that year. Lastly, poverty spells that involved rural-to-urban migration had lower exit rates than those that were experienced only in rural areas. In addition, after relocating to an urban area, the longer young adults remained in poverty, the less likely they were to exit from poverty. Public policy implications are discussed.