How To Start A Halfway Home

Are you interested in helping out those in need while at the same time helping yourself out financially? Would you like to feel great about what you do on a daily basis, via your ability to positively impact others? If that is the case, then starting a halfway home may just be the right business for you.

The first question, on your journey to starting a halfway home and working for yourself is what niche you specifically want to target. Remember, a halfway home is simply a name. What we mean by that, is that a halfway home can be a number of things….it could be a sober home for individuals with sobriety issues or it could be a home for people transitioning out of jail. Similarly, one could start a halfway home for people with chronic mental illness where there is a larger need for residential support services and possibly staff. Again, as you have heard us mention in all of our articles, the most (or at least one of the most important) things that you can do is decide who you want to be when you grow up! What we mean by that, is what demographic do you want to serve?

Let’s assume that you want to target the ex-offender population and that you are looking for state contracts. If that is the case, and you are located in New Jersey, then you must be a non-profit. Why you ask? Well, under New Jersey law, in order to receive government contracts to run halfway homes, you must be designated as a 501 c 3 non-profit. But don’t be discouraged! Just because you are a non-profit doesn’t mean you can’t start a halfway home and make a tremendous fortune doing so. Just ask the folks at the Kintock Group, which according to the New York Times is one of the largest operators of halfway homes in New Jersey. This company was able to pay the CEO over $800,000 per year along with hundreds of thousands more being paid to various other family members. Yet another non-profit halfway home operator has paid out over $1.3 Million to their CEO. The point is that you need to determine what market you wish to target, and once you target it, you need to determine how you should set it up – and in the case of New Jersey halfway home contracts, you would need to be set up as a non-profit.

But again, this is just one of many possibilities to explore in starting your own halfway home. You may decide that you would simply like to set up a halfway home for people with alcohol related issues. Yet again, you need to determine your target audience. Are you wanting to target the uber-affluent who are looking to send their children to high-end rehabs in exclusive locations? If so, you can easily charge $10,000 –  $15,000 per month per client. You will need to have a larger staff on board and potentially provide nutritional counseling, equine therapy, daily (in-house) 12 step meetings amongst a number of other things. On the flip side, you may decide to start up a simple sober home which is also known as a halfway home whereby you could target clients from the local DA’s office. Most of these clients need a halfway home to live, but one that will be more affordable. In this case, you may simply decide to charge $750 per month in your 4 bedroom home that you have recently rented. Fortunately, after doing the math, you realize that the $6,000 per month in income you will generate running your halfway home will more than cover your $850 – $1250 per month in rent. In the case of targeting the affluent audience, you realize that your rent and expenses will be higher, but so will your revenue. In this case, you may only have 6 clients per month which would be roughly $60,000 per month however your rent maybe $2,000 – $3,000 and your staff salaries maybe another $6,000. In both cases, there is plenty of margin for an intelligent operator.

This is just one way to look at starting your halfway home. If you are looking for additional information on how to start a group home, halfway home, transitional living home, sober home, foster home, ICF/MR home, DADS Home or other type of care home for people with disabilities; check out our free course on starting your very own income-generating group home by clicking here or going to and clicking on the free wealth building course.