The goal of this study was to estimate the prevalence of low functional capacity and associated factors in Joaçaba, Santa Catarina State, Brazil, in 2003-2004, using a household survey (n = 345). Subjects who demonstrated difficulty in performing 6 or more activities or inability to conduct 3 of the activities according to the scale proposed by Rikli & Jones were defined as having low functional capacity. A questionnaire covering socioeconomic, demographic, housing, and self-perceived socioeconomic variables was applied. The study included distribution of the target variables' simple frequency, chi-square association tests, and multiple logistic regression analysis. The response rate was 92.7%, with a low functional prevalence of 37.1% (95%CI: 32.0-42.2). Mean age was 69.5 years. After adjusting for confounding variables, the factors associated with low functional capacity were: age > 70 years, female gender, and negative self-perceived socioeconomic status. A high percentage of elderly citizens in Joaçaba show low functional capacity, leading to dependency. Health programs that delay the onset of such disabilities could contribute to healthier aging.