Tiebout proposed his famous hypothesis that status of local finance may influence residential choice decision making of the population. This argument has laid the foundations of local finance theory. The purpose of our study is to analyze the effect of local expenditures and taxations on human housing location choice. In this paper, at first look back to the relative literatures of fiscal mobility behavior for a review. After that, we utilize microeconomic utility theory to establish theoretical models, with the purpose of defining clearly the reciprocal relationship among many variables of interest to us. Finally, we conclude with many important factors and results accordingly.