How Much Money Can Be Made Starting A Group Home

15 Jan 2014 by ">Admin

Is there any money to be made with group homes, transitional homes, sober homes, halfway houses or MHMR homes? Don’t let them fool you!

Let’s get into the high-level details.  A 30,000-foot level – of the financials behind running group homes.

Businesses come in all shapes and sizes. Whether it is a developer of land who purchases large tracts of land, entitles it and sells it off piece by piece. Or an owner of a Thai restaurant who buys 1000 eggrolls and then sells them 1 at a time. or it is a local bar that purchases beer by the kegs and then sells them by the individual glass – they all have one thing in common. All these businesses are buying in bulk and selling in smaller pieces. Renting out an apartment is the same thing. And the more apartment units you have in a building, the more rent you will take in.


Understanding The Money

The group home, assisted living, halfway house or transitional home business is the same from a generic standpoint.  Let’s take a normal property, for example, a four bed, two bath home. In a typical Texas neighborhood, this property will rent for anywhere from $1000 – $1350 per month. Unfortunately, most properties of this nature will cost between $115,000 – $155,000. Without a substantial down payment, this property will eventually be a money loser on a monthly basis before any potential appreciation or capital gain. However, let’s assume that you decide to start up an assisted living company, group home company or something of that nature and rent out the property by the room? What if the rent you collect is $600 per month? BINGO – Hopefully you are getting the point. The property now brings in over $2400 per month.



Understanding The Landlord

This type of landlord is not new. In fact, many refer to it as the second oldest profession in the world! Now, take a minute and think about some of the world’s greatest fortunes that initially started from this simple concept. Let me give you a hint; you probably have stayed at one of their hotels…and you may have seen one of their great grand-daughters acting as they worked in the world’s oldest profession. Conrad Hilton started out with a small rooming house in San Antonio, New Mexico and perfected his craft from there. The family has since built it into one of the largest hotel chains in the world because of his efforts.

But Hilton is just one example of how a small boarding home, rooming home or transitional house can give you the seed money you need to continue scaling up. There are tens of thousands of group homes throughout the country…and they wouldn’t be around if they weren’t profitable. And then there are the larger players…companies that are owned by private equity. Do you think Steven Schwarzman and Blackstone Group would have purchased Southern Cross, the biggest care home provider in Europe, of this was not a profitable industry? Remember, Private Equity’s job is to MAKE MONEY.

Jerry McGuire SHOW ME THE MONEY representing your need to make money.


The Opportunity is There for You to Take

Although we are only touching on the high-level financial aspects of care homes, nursing homes, group homes and MHMR homes; it should be fairly clear and obvious that even the owner of a small group home with six residents can make a lot of money with minimal hours. I will let you do the math on seven clients because at $600 per month and a small $950 per month rent or mortgage payment.

Now you must also remember that a “group home” is simply a generic name. Within the “group home” industry are literally hundreds of difference “sub-niches”.  Also, consider that “group homes” are simply a sub-niche of the real estate sector. That said, each “sub-niche” will have its different problems and solutions as well as differing amounts of work required to make the operation run. Student “group-home” living is going to be relatively passive, as will be elderly group home housing in the 50 – 65 age range; while housing violent ex-offenders in a group home would potentially be more lucrative but would require more staff and therefore management time. These are all things to take into consideration when determining how much money can be made operating a group 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.

If you think this was helpful… check out our membership site! The information here has helped many to earn more than $10,000 per month. 

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27 responses to “How Much Money Can Be Made Starting A Group Home”

  1. My wife And I are therapeutic Foster parents For the last pass 3 years in The state of Florida we would like to start a group home But we don’t know what we have to do can’t someone out there point us in the right direction Thanks

  2. My wife And I are therapeutic Foster parents For the last pass 3 years The state o Floridaf we would like to start a group home Butwe don’t know what we Have to have or do can’t someone out there point us in the right direction thanks

  3. I’m strongly considering opening a group home/transition home. In the state of Texas one must attend an informational class first, free of charge. Thanks for more clarity. I will like to read more on your site.

    • Sure. Keep reading. My blog is free – lots of great content. I have been doing this 20+ yrs and No, you do not need to attend any free workshops. Just get started

  4. I was told by my girlfriends mother her Clint makes $20,000.00 a month off of two children with autism
    Can someone tell me if this is possible it sounds great if it is true.

    • You can make $20,000 per month with group homes. If you want to learn how to make money with group homes – whether $2,000 per month or $20,000 the first thing you should do is read up on my blog. It is free. Then sign up for my free 10-part course. If you need more help after that, I have a course that shows you step by step everything you need to get started. Just know that the course doesnt do the work for you! You need to work it!

  5. Finally some good news on the topic. I often read that there is no money or profit from the position of ownership of a halfway house . I couldn’t agree with that because even in the intent of non profit people do earn salaries. I think I need more information on how an owner can be put on the payroll. If anyone has an example of this please do share .

    • I also agree, seems like you have thought of making one or investing in a halfway house before. Just curious are you still interested? If so, can we compare notes?

      • Whether you are talking about halfway homes, sober homes, care homes, assisted living homes or group homes – they are all basically the same thing. Get a house and rent the rooms out individually. For better profit, rent beds out individually.

    • OK, look. It is really quite simple. Non profits bring in money through donations. In fact, did you know that non profit capital raising is one of the most lucrative jobs out there? They routinely pay people 20% just to raise money. Then normally, 50 – 70% of this money goes to overhead! Salaries are just one area. I put a posting up a while back of a non profit director making many MILLIONS per year running group homes…..

    • I have a link to a guy running a non-profit who was making for himself over $6,000,000 per year. Dont kid yourself. CEO’s of non profits live in Multi-Million mansions

    • Depends on how you plan to run it! I advocate and show my students how to run profitable group homes, care homes etc using my strategy that involves the FAIR HOUSING ACT. No licensing is needed! We outsource all out medical to the professionals

      Here is a link to my GOLD COURSE

  6. I am going to start a transitional house and I am in the process of inquiring information getting started.

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