How much does a Sober Living Home cost to buy?

A typical Sober Living Home sells for 2x to 4x annual revenue. With average revenue of $150K, expect to pay $300K to $600K.

How much does it cost to start a Sober Living Home?

Startup costs range from $30K to $150K depending on location, equipment, and scale.

Service

Sober Living Home

Q: What are the profit margins for a Sober Living Home?

The average profit margin for a Sober Living Home is around 25%. 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.

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.

Share on X Share on LinkedIn

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

Low End

$60K

Typical

$150K

High End

$350K

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.