Sober Living Home
A residential recovery house that earns $8K–$20K/month per property — and serves a genuine need
Sober living homes (also called recovery residences or halfway houses) are shared housing environments for people in recovery from addiction, typically following inpatient treatment or incarceration. Residents pay weekly or monthly rent — usually $600–$1,500/month per bed — and follow house rules (sobriety, meetings, curfews) in exchange for structured, supportive housing. A 6–12 bed house generates $4K–$18K/month in gross revenue at 70–80% occupancy. Operating margins of 20–35% are typical at stabilization. Unlike residential rentals, sober living is treated as shared housing under the Fair Housing Act, reducing regulatory burden — most states require no clinical license for a basic sober living home. The US addiction recovery market is estimated at $42B and growing, and housing is one of the most critical bottlenecks.
Avg Revenue
$150K
Profit Margin
25%
Acquisition Multiple
2x - 4x
Startup Cost
$30K - $150K
Difficulty
3/5
How It Works
An operator leases or purchases a single-family home or duplex in a residential neighborhood and converts it into a structured recovery residence. Residents are referred by treatment centers, courts, parole officers, and online platforms like Sober Living Network and Addiction.com. Each resident pays weekly or monthly rent, with rates varying by market ($600–$1,500/month). Operators hire a house manager (often a person in recovery) to enforce house rules, manage intake, and handle daily operations. Revenue scales by adding properties. Well-run multi-property operators build referral pipelines with local treatment centers and court systems, creating reliable census flow and stable occupancy. State-level certification (NARR, Oxford House affiliation) unlocks additional referral channels.
Revenue Range
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 623220 · Residential Mental Health and Substance Abuse Facilities
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal | Jobs | Franchise |
|---|---|---|---|---|---|
| Dec 2025 | FL | $1.5M | $1.8M | 25 | — |
| Jul 2025 | MI | $1.2M | $1.4M | 8 | — |
| Jun 2025 | CA | $506K | $595K | 5 | — |
| Feb 2025 | CO | $350K | $412K | 35 | — |
| Feb 2025 | CO | $4.7M | $5.5M | 35 | — |
| Apr 2024 | NJ | $75K | $88K | 23 | — |
| Apr 2024 | NJ | $2.4M | $2.8M | 23 | — |
| Mar 2024 | MN | $3.1M | $3.6M | 90 | — |
| Mar 2024 | MN | $200K | $235K | 90 | — |
| Oct 2022 | CA | $3.6M | $4.2M | 15 | — |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Pros
- +Evergreen demand: 21 million Americans struggle with substance use disorders — demand for recovery housing is chronic and structural
- +Recession-resistant: addiction does not follow economic cycles; court and treatment center referrals continue through downturns
- +FHA protections: sober living residents are protected as a class under the Fair Housing Act — municipalities cannot zone out recovery residences with the same tools used for commercial facilities
- +Strong cash yield: a 10-bed house at $900/month per bed and 80% occupancy generates $86K/year gross on a property that may cost $1,500–$2,500/month to lease
Cons
- -Community opposition: NIMBY resistance can be intense in some neighborhoods, requiring careful site selection and proactive community engagement
- -Operational intensity: house management requires 24/7 availability for crises, rule violations, and emergency situations — not truly passive
- -Relapse risk: resident relapses create disruptions and turnover, requiring constant intake pipeline and a strong house manager
- -Regulatory patchwork: state-level certification requirements, insurance needs, and local zoning vary significantly by market
Best For
Mission-driven operators with real estate access or community connections; also viable as a portfolio play for landlords willing to accept operational complexity in exchange for 2–3x the rent of a standard residential lease
Operating Costs
Primary costs: lease or mortgage on the property, house manager salary ($1,500–$3,000/month), utilities, food (if included), insurance, and certification/compliance costs. A well-run 10-bed home typically runs $8K–$12K/month in operating costs against $12K–$18K/month in revenue at 80% occupancy, producing $4K–$6K/month in operating cash flow per house.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Directory of certified sober living homes and operator resources — also a primary referral platform for census building
Franchise-style operator network with detailed state-by-state profitability breakdowns for sober living operators
Recovery home and healthcare service businesses for sale — occasional sober living acquisitions listed here
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- service
- Difficulty
- 3/5
- Buy price
- $300K–$600K
Buyer's Toolkit
Essential tools to get started
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Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
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