Accurate displacement estimates ate required to obtain high-quality strain estimates in elastography. In this paper the strain variance is derived from the statistical properties of the displacement field to define a point signal-to-noise ratio for elastography (SNR(0)). Displacements caused by compressional forces applied along the axis of the transducer beam are modeled by scaling and shifting the axial reflectivity profile of the tissue. The strain variance is given as a function of essential experimental parameters, such as the amount of tissue compression, echo waveform window length, and the amount of window overlap. SNR(0) is defined in terms of applied compression and strain variance and normalized by the input signal-to-noise ratio (SNR,) for echo signals, to formulate the performance metric SNR(0)/SNR(i). This quantity characterizes the noise properties, dynamic range, and sensitivity of strain images based on the spatial resolution requirements. The results indicate that low noise, high sensitivity, and limited dynamic range strain images are obtained for high-frequency bandpass signals when the applied strain is small. For large strains, however, one strategy for low-noise strain imaging employs base-band signals to obtain images with large dynamic range but limited peak sensitivity and noise figure. A better strategy includes companding, which eliminates the average strain in the echo signal before cross-correlation to reduce the dynamic range requirement and increase peak sensitivity for strain estimates. (C) 1997 Acoustical Society of America.