Demand response (DR) and flexible AC transmission system (FACTS) devices can be effectively used for congestion management in power transmission systems. However, demand response program (DRP) implementation can itself affect the optimum location of FACTS devices, which is one of the main issues in power system planning. This paper investigates the impact of DRPs on unified power flow controller (UPFC) placement. The harmony search algorithm is employed to determine the optimum locations and parameter setting of UPFC in a long-term framework. The optimization problem is solved with different objectives including generation and congestion cost reduction, as well as loss reduction. In this paper, the proposed approach is analyzed using 5 different cases, which are defined in such a way that they demonstrate the impact of DRPs on the UPFC placement problem. The IEEE reliability test system is used as an illustrative example to demonstrate the necessity of considering DRPs for UPFC placement.