This study evaluates the energy consumption in houses for low-income families during the heating seasons, and estimates the savings associated with upgrading the heating systems. The study tests the effectiveness of using air-source heat pumps for space heating in eastern North Carolina. Economic evaluation of the heating system is performed based on the collected data which includes surveys, actual energy consumption. Results show that houses with heat pumps as the main source of heating have the lowest energy consumption and the lowest energy intensity. Heat pumps are found to reduce the heating cost in low-income mobile homes by up to 52% when integrated in an electric strip heat system and at the same time improves the thermal comfort. Moreover, results from the economic and sensitivity analyses support an economic justification for using heat pumps as their benefits exceed the initial cost of installation as evident by the positive NPV and the greater than one PI ratios especially after the second year of installation and throughout the 15 years - life of the heat pump retrofits. (C) 2013 Elsevier B.V. All rights reserved.