DURING AN INST TRAINING FLT IN A BEECH KING AIR 90 (BE90) THE TRAINEE FLEW LOW OVER HOUSES DURING BASE LEG AND FINAL CAUSING AN UNNECESSARY NOISE PROB TO THE RESIDENCES BELOW.

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I WAS GIVING INST TRAINING TO THE COMPANY AND ACFT OWNER. WE WERE ON AN IFR FLT PLAN TO AN UNCTLED ARPT WHICH HAS AN ILS. WE WERE VECTORED FOR AN ILS AND WOULD CANCEL AND CIRCLE TO LAND ON THE RWY IN THE OPPOSITE DIRECTION. IT WAS CLR SKIES; UNLIMITED VISIBILITY. I CANCELED IFR AND TOLD THE STUDENT TO TAKE OVER VISUALLY AT CIRCLING MINIMUMS. HE DID AND ENTERED L DOWNWIND. I TOLD HIM TO KEEP IT IN TIGHT. I ALSO TOLD HIM NOT TO BE TOO STEEP ON FINAL AND HE CARRIED THE DOWNWIND OUT A BIT FAR. HE TURNED BASE LEG OVER A SMALL GROUP OF HOUSES. I DIDN'T NOTICE THE HOUSES BECAUSE I WAS DISTR LOOKING FOR TFC. I EXPLAINED TO HIM IN ACTUAL IFR CONDITIONS HE SHOULD HAVE TURNED PRIOR TO THE HOUSES. WE WERE IN GOOD VFR AND BECAUSE OF THIS HE SHOULD HAVE FLOWN BEYOND THE HOUSES TO AVOID OVERFLYING THEM. I SHOULD HAVE TOLD HIM EARLIER ON DOWNWIND THAT IF HE COULDN'T KEEP IT TIGHT HE SHOULD GO PAST THE HOUSES BEFORE TURNING BASE. WE AS FLT INSTRUCTORS MUST CONSTANTLY BE AWARE OF AND CONSTANTLY REMIND OUR STUDENTS TO FLY NEIGHBORLY -- FLYING NEIGHBORLY RESULTS IN ADDED SAFETY; NOISE ABATEMENT AND BETTER RELATIONS WITH SURROUNDING COMMUNITIES.