Optimal placement of controlled release fertilizers (CRF, polymer coated urea) will reduce N application rates by increasing crop uptake efficiency and reduce the risk of nitrate leaching and/or runoff. Treatments were arranged in a factorial design consisting of three N-rates (112, 168, and 224 kg ha-1) and four fertilizer placements (banded 5 cm above-seed, banded 5 cm below-seed, mixed homogeneously throughout the row, and side-dressed at early emergence on row shoulders i.e. grower practice). Both the fertilizer placement and N-rate main effects were significant for NO3-N sap concentration at full flowering (FF). The interaction was not significant. Below-seed fertilizer placement treatment produced significantly higher NO3-N sap concentration at FF (1388 ppm) than mixed (968 ppm), above-seed (503 ppm), and sidedressed (258 ppm). CRF at 224 kg ha-1 produced the highest NO3-N sap concentration of all rates. Dry matter accumulation at FF was not affected by N-rate. However, fertilizer banded below-seed and mixed homogeneously in the row produced significantly higher dry biomass than above-seed and sidedressed treatments. There was a significant interaction between placement and rate for both total and marketable yield. Plants in the below-seed and mixed placement at the high N-rate, and below-seed placement at the medium N-rate produced the highest marketable and total yields averaging 33.8 and 37.2 MT ha-1 respectively. There were no significant differences between other treatments. Lowest marketable yields were observed for the above-seed placement at the high N-rate and the side-dressed treatment at the medium rate averaging 23.8 MT ha-1 and 17.9 MT ha-1, respectively. The side-dressed treatment produced a significantly higher percentage of tuber rots and incidence of tuber internal heat necrosis and a lower tuber specific gravity compared to all other treatments. Placement of CRF below-seed is a promising option to increase N uptake in potato under seepage irrigation.