A CFI WITH A LOW TIME STUDENT LET THE STUDENT DSND BELOW 1000 AGL OVER A VILLAGE.

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I WAS INSTRUCTING A 3 HR PRIMARY STUDENT IN THE PRACTICE AREA. WE WERE PRACTICING SETTING UP A LNDG PATTERN WITH A ROAD AS IMAGINARY RWY. MY INTENT WAS FOR HIM TO DSND TO NO LOWER THAN 1000 FT AGL; THE TO 'GAR' AND CLB. THAT WOULD HAVE LEFT US PLENTY OF ALT 'CUSHION;' SINCE WE WERE IN A RURAL AREA. 2 THINGS HAPPENED THAT I DIDN'T ANTICIPATE. ONE WAS THAT MY STUDENT'S REACTIONS WERE MUCH SLOWER THAN I WAS EXPECTING. THE OTHER WAS THAT BY THE TIME HE BEGAN TO LEVEL OFF; WE WERE ENCROACHING ON A VILLAGE; XING OVER THE HIGH SCHOOL PARKING LOT (WHICH WAS EMPTY -- IT WAS FRI EVENING). AT ABOUT 850 FT AGL I TOOK OVER THE CTLS; BANKED AWAY FROM THE VILLAGE; AND WHEN ABOUT 1/2 MI AWAY ADDED PWR TO CLB. THERE WAS NEVER ANY SERIOUS QUESTION OF SAFETY. I MADE 2 MISTAKES. I SHOULD HAVE BEEN MORE AWARE OF OUR POS NEAR THE VILLAGE (WHOSE RESIDENTS HAVE A HISTORY OF COMPLAINTS ABOUT LOW FLYING ACFT!) AND I SHOULD HAVE TAKEN THE CTLS RATHER THAN ALLOW AN ALT VIOLATION. AS A CFI; MOST OF MY INSTRUCTING HAS BEEN BFR'S. I DID NOT APPRECIATE HOW SLOWLY A LOW TIME STUDENT WOULD RESPOND; NOT THAT HE WOULD HAVE NO IDEA HOW LOW TO GO. PERHAPS CFI TRAINING SHOULD STRESS BUILDING IN MUCH GREATER MARGINS FOR LOW TIME STUDENTS DURING TRAINING. AND FOR LOW TIME CFI'S!