In a residential furnace having a layered insulation material on the inner walls of the heat exchanger compartment, the inner aluminum foil layer has a plurality of holes formed therein in order to allow for the outer layer to absorb the sound within the heat exchanger compartment and thereby reduce the noise emanating from the furnace. Both the density and size of the holes are optimized to maximize the sound absorption performance over the particular frequency ranges that are characteristic of the furnace.