It is the purpose of this paper to give an exact solution for the stress distribution resulting from loading a perforated strip in tension through a rigid pin filling the hole. The strip is regarded as of an infinite length and having a single axial hole. Stress distributions are found by an alternating approximation method and the stresses are tabulated in the form of stress-concentration factors for different values of diameter of the hole. The influence of size of the hole on the stress concentration in the strip is investigated and the optimum diameter of the hole is evaluated.