In my case I could use a parbox or minipage instead of a tabular, since
I only have one column of text. But I don't want to specify the width,
I just want it wide enough to hold the lines of text.
Thanks.
\begin{center}
\begin{figure}[htb]
\subfigure[SubfigureA.]{\fbox{\begin{tabular}{l}Hi\\there\\how\\are\\you\end{tabular}}}
\hspace{2cm}
\subfigure[Subfigure B.]{\fbox{WOW}}
\caption{Why is the vertical spacing like this?}
\end{figure}
\end{center}
just a guess
\begin{tabular}[b]{...
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Thanks, that was it. That really helps me out.