diff --git a/cmd/helm/helm.go b/cmd/helm/helm.go
index 41ea6a3b4..c395d1f55 100644
--- a/cmd/helm/helm.go
+++ b/cmd/helm/helm.go
@@ -19,7 +19,6 @@ package main // import "k8s.io/helm/cmd/helm"
 import (
 	"errors"
 	"fmt"
-	"io"
 	"io/ioutil"
 	"log"
 	"os"
@@ -45,9 +44,7 @@ var (
 	tlsKeyFile    string // path to TLS key file
 	tlsVerify     bool   // enable TLS and verify remote certificates
 	tlsEnable     bool   // enable TLS
-)
 
-var (
 	kubeContext  string
 	tillerTunnel *kube.Tunnel
 	settings     helm_env.EnvSettings
@@ -114,7 +111,7 @@ func initRootFlags(cmd *cobra.Command) {
 	tlsKeyFile = os.ExpandEnv(tlsKeyFile)
 }
 
-func newRootCmd(out io.Writer) *cobra.Command {
+func newRootCmd() *cobra.Command {
 	cmd := &cobra.Command{
 		Use:          "helm",
 		Short:        "The Helm package manager for Kubernetes.",
@@ -123,11 +120,12 @@ func newRootCmd(out io.Writer) *cobra.Command {
 		PersistentPreRun: func(cmd *cobra.Command, _ []string) {
 			initRootFlags(cmd)
 		},
-		PersistentPostRun: func(_ *cobra.Command, _ []string) {
+		PersistentPostRun: func(*cobra.Command, []string) {
 			teardown()
 		},
 	}
 	addRootFlags(cmd)
+	out := cmd.OutOrStdout()
 
 	cmd.AddCommand(
 		// chart commands
@@ -157,7 +155,7 @@ func newRootCmd(out io.Writer) *cobra.Command {
 		addFlagsTLS(newVersionCmd(nil, out)),
 
 		newCompletionCmd(out),
-		newHomeCmd(out),
+		newHomeCmd(),
 		newInitCmd(out),
 		newPluginCmd(out),
 
@@ -180,7 +178,7 @@ func init() {
 }
 
 func main() {
-	cmd := newRootCmd(os.Stdout)
+	cmd := newRootCmd()
 	if err := cmd.Execute(); err != nil {
 		os.Exit(1)
 	}
diff --git a/cmd/helm/helm_test.go b/cmd/helm/helm_test.go
index 8789ffd1f..910daa22a 100644
--- a/cmd/helm/helm_test.go
+++ b/cmd/helm/helm_test.go
@@ -23,6 +23,7 @@ import (
 	"io/ioutil"
 	"math/rand"
 	"os"
+	"path/filepath"
 	"regexp"
 	"sync"
 	"testing"
@@ -337,3 +338,77 @@ func ensureTestHome(home helmpath.Home, t *testing.T) error {
 	t.Logf("$HELM_HOME has been configured at %s.\n", settings.Home.String())
 	return nil
 }
+
+func TestRootCmd(t *testing.T) {
+	oldhome := os.Getenv("HELM_HOME")
+	defer os.Setenv("HELM_HOME", oldhome)
+
+	tests := []struct {
+		name   string
+		args   []string
+		envars map[string]string
+		home   string
+	}{
+		{
+			name: "defaults",
+			home: filepath.Join(os.Getenv("HOME"), "/.helm"),
+		},
+		{
+			name: "with --home set",
+			args: []string{"--home", "/foo"},
+			home: "/foo",
+		},
+		{
+			name: "subcommands with --home set",
+			args: []string{"home", "--home", "/foo"},
+			home: "/foo",
+		},
+		{
+			name:   "with $HELM_HOME set",
+			envars: map[string]string{"HELM_HOME": "/bar"},
+			home:   "/bar",
+		},
+		{
+			name:   "subcommands with $HELM_HOME set",
+			args:   []string{"home"},
+			envars: map[string]string{"HELM_HOME": "/bar"},
+			home:   "/bar",
+		},
+		{
+			name:   "with $HELM_HOME and --home set",
+			args:   []string{"home", "--home", "/foo"},
+			envars: map[string]string{"HELM_HOME": "/bar"},
+			home:   "/foo",
+		},
+	}
+
+	// ensure not set locally
+	os.Unsetenv("HELM_HOME")
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			defer os.Unsetenv("HELM_HOME")
+
+			for k, v := range tt.envars {
+				os.Setenv(k, v)
+			}
+
+			cmd := newRootCmd()
+			cmd.SetOutput(ioutil.Discard)
+			cmd.SetArgs(tt.args)
+			cmd.Run = func(*cobra.Command, []string) {}
+			if err := cmd.Execute(); err != nil {
+				t.Errorf("unexpected error: %s", err)
+			}
+
+			if settings.Home.String() != tt.home {
+				t.Errorf("expected home %q, got %q", tt.home, settings.Home)
+			}
+			homeFlag := cmd.Flag("home").Value.String()
+			homeFlag = os.ExpandEnv(homeFlag)
+			if homeFlag != tt.home {
+				t.Errorf("expected home %q, got %q", tt.home, homeFlag)
+			}
+		})
+	}
+}
diff --git a/cmd/helm/home.go b/cmd/helm/home.go
index 25809b521..abd7fb101 100644
--- a/cmd/helm/home.go
+++ b/cmd/helm/home.go
@@ -17,9 +17,6 @@ limitations under the License.
 package main
 
 import (
-	"fmt"
-	"io"
-
 	"github.com/spf13/cobra"
 )
 
@@ -28,25 +25,24 @@ This command displays the location of HELM_HOME. This is where
 any helm configuration files live.
 `
 
-func newHomeCmd(out io.Writer) *cobra.Command {
+func newHomeCmd() *cobra.Command {
 	cmd := &cobra.Command{
 		Use:   "home",
 		Short: "displays the location of HELM_HOME",
 		Long:  longHomeHelp,
 		Run: func(cmd *cobra.Command, args []string) {
 			h := settings.Home
-			fmt.Fprintf(out, "%s\n", h)
+			cmd.Println(h)
 			if settings.Debug {
-				fmt.Fprintf(out, "Repository: %s\n", h.Repository())
-				fmt.Fprintf(out, "RepositoryFile: %s\n", h.RepositoryFile())
-				fmt.Fprintf(out, "Cache: %s\n", h.Cache())
-				fmt.Fprintf(out, "Stable CacheIndex: %s\n", h.CacheIndex("stable"))
-				fmt.Fprintf(out, "Starters: %s\n", h.Starters())
-				fmt.Fprintf(out, "LocalRepository: %s\n", h.LocalRepository())
-				fmt.Fprintf(out, "Plugins: %s\n", h.Plugins())
+				cmd.Printf("Repository: %s\n", h.Repository())
+				cmd.Printf("RepositoryFile: %s\n", h.RepositoryFile())
+				cmd.Printf("Cache: %s\n", h.Cache())
+				cmd.Printf("Stable CacheIndex: %s\n", h.CacheIndex("stable"))
+				cmd.Printf("Starters: %s\n", h.Starters())
+				cmd.Printf("LocalRepository: %s\n", h.LocalRepository())
+				cmd.Printf("Plugins: %s\n", h.Plugins())
 			}
 		},
 	}
-
 	return cmd
 }