Are you talking about in the coop? or in the run? My run has sand in it and it was the best thing I ever did (well, I've only had the chickens since May.
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Our 11 x 11' run has a chicken wire roof and is also covered with a tarp. It started out in June as grass. That lasted about two weeks, and we were down to bare dirt. Around the first of July, I sprinkled the area with garden lime, then I put down six bags of regular play sand from
Walmart ($3.49/40 lbs). It worked out to be about an 1.5" deep. At the end of August, we added three more bags. It could probably use three more to fill in some low spots along the edge where I guess rain has washed it away, but it's really fine right now. It stays nice and dry and odor free. I actually got three bags of what I thought was sand at a good price...It was paver base and way too rough to put in there! Penny wise, dollar foolish! I'll use it around the outside perimeter one of these days. It would probably be less expensive if I went to the building supply place and got a truckload but didn't really want to have to shovel it.
I also put a bushel basket in the center with a mixture of a bag of sand, peat moss, pine shavings, and DE. It was supposed to be for dust baths, but they usually mess around in it so much that in about 2 weeks I have to refill it. About every two weeks, I take a rake to it although it is really not necessary. I also throw some scratch or BOSS in there everyday and they keep it pretty stirred up. As long as it stays dry it's great. We had no problem with flies this summer either.
Sorry I can't speak to the use of it in the coop. I live in Maryland and although our winters are generally not too harsh I wanted to use the deep litter method for added warmth since it isn't insulated. The pine shavings in there also stay stirred up and pretty much odor free.
Good luck! There are lots of people on here who swear by sand on the floor of their coop. Do a search and you will probably find a ton. Good luck!