Different Types of Care Homes

assisted living assisted living licensing business plan checklist care home business financial planning sober living sober living home requirements starting a care home Jun 19, 2025

Starting a care home can be an exciting business venture, but it’s important to understand the different types of care homes available. Two common types you’ll hear about are sober living and assisted living homes. Both serve unique needs, and understanding the differences will help you determine which one is right for you.

Let’s break it down! 🚀

Check out this video, too;  

Why Understanding Care Home Types Matters

Knowing the differences between sober living and assisted living is crucial before diving into this industry. It will help you:

✅ Choose the right care model for your business
✅ Align your services with the needs of your community
✅ Understand the legal, financial, and operational requirements for each type

The goal is to make sure your care home business is set up for success from the start.


What’s the Difference Between Sober Living and Assisted Living?

Let’s take a closer look at the two types of care homes:

1. Sober Living Homes

A sober living home is a safe, supportive environment for individuals recovering from addiction. These homes provide:

🛏️ A drug- and alcohol-free living space
👥 Peer support and a sense of community
🏠 A structured environment with rules and guidelines

Sober living homes don’t offer medical care, but they do focus on helping residents maintain sobriety through social support, accountability, and a stable living environment.

2. Assisted Living Homes

An assisted living home is designed for seniors or individuals who need help with daily activities but don’t require 24-hour medical care. These homes offer:

🛏️ Help with basic daily activities (e.g., dressing, eating, bathing)
💉 Some healthcare services like medication management
🍽️ Meal preparation and housekeeping

Assisted living homes are perfect for individuals who need some support but still want to live independently.


Step 1: Understand the Needs of Your Target Audience

Before you make any decisions, think about your target audience:

Sober Living: Ideal for individuals recovering from addiction who need a safe, sober environment
Assisted Living: Best for seniors or individuals who need some help with daily tasks but want to maintain their independence

Understanding the needs of your residents will guide your decision in choosing the right care home type.


Step 2: Learn the Legal & Regulatory Differences

Each type of care home has its own set of regulations and licensing requirements. Be sure to research:

📜 Sober Living Homes: These homes may not require the same level of licensing as assisted living homes, but you’ll still need to adhere to zoning laws, safety regulations, and local ordinances.

📜 Assisted Living Homes: These require specific licensing and are regulated by state agencies. You'll need to meet staffing, safety, and health regulations, which can vary by state.


Step 3: Consider the Financial Investment

The financial investment for both types of care homes will vary based on location, size, and the services you plan to provide:

💰 Sober Living Homes: Typically lower overhead costs since they don’t offer medical services, but you’ll need to invest in a safe and supportive environment for your residents.

💰 Assisted Living Homes: Higher operational costs due to the medical care and support services you’ll need to offer, but they often have higher reimbursement rates from insurance, government programs, or private pay residents.


Step 4: Set Up a Sustainable Business Model

No matter what type of care home you choose, you’ll need to establish a sustainable business model:

📌 Sober Living Homes: Focus on providing a safe, supportive environment with structured programs for residents.
📌 Assisted Living Homes: Provide a mix of healthcare and personal support services.

Use this Business Plan Checklist to make sure your plan is solid and aligned with your vision!


Next Steps: Take Action Now!

Ready to start your care home business?

Step 1: Download the Business Plan Checklist and start your planning.
Step 2: Apply to the Assisted Living Investing Mastermind for expert coaching.
Step 3: Follow the steps, take action, and make your vision a reality!

Got questions? Drop them in the comments below! ⬇️

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