How To Choose the Perfect Location for Your Assisted Living Facility

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Choosing the right location for your assisted living facility is about finding a nice house AND setting yourself up for long-term success.

The truth is, location can make or break your business. From demographics to zoning laws, each factor plays a big role in whether your facility thrives or struggles.

Good news—you don’t have to figure it out on your own! This guide will walk you through the 7 key things you need to research before you buy or lease a property.

Let’s get started! 🚀

Check out this video, too:

Why Location Matters More Than You Think

Before signing, ensure your area can support an assisted living business.

Many new owners fall in love with a property first and then try to make the numbers work. That’s a dangerous path. A better approach? Do the research first.

Here’s what to look for:
✅ Strong demand from seniors in the area
✅ Families who can afford your rates
✅ Local rules that allow assisted living
✅ A competitive landscape where you can succeed

When you get the location right, filling beds becomes easier, staff are happier, and your margins are stronger.

Step 1: Check the Demographics (Is There Enough Demand?)

Before you invest, study the local population.

📌 Key questions to ask:
✅ Is the senior population growing in this area?
✅ Are people moving here to retire?
✅ How many assisted living facilities already exist nearby?

💡 Tip: Some states share occupancy rate reports—use them to spot areas where beds are in short supply.

Step 2: Look at Income & Affordability

Even if there’s a need, families must be able to pay your rates.

📌 What to check:
✅ Median household income
✅ Percentage of homeowners vs. renters
✅ Cost of living (so you know what families have left after expenses)

💡 Pro tip: Match the “feel” of your facility to the market. If you serve Medicaid residents, avoid placing your home in an ultra-luxury neighborhood where families may feel out of place.

Step 3: Verify Zoning & Permitted Use

You can’t operate legally if your property isn’t zoned for assisted living.

📌 Your to-do list:
✅ Check city zoning rules for “permitted use”
✅ Confirm whether you can open without a special permit
✅ Get any approvals or variances in writing from your planning department

💡 This step saves you from buying a property you can’t use for your business.

Step 4: Understand the Political & Regulatory Climate

Some states and cities are more business-friendly than others.

📌 Look into:
✅ State licensing requirements
✅ Medicaid policies
✅ Frequency and intensity of inspections

💡 You can succeed in both conservative and liberal states—just know the rules and how often they change.

Step 5: Factor in Wages, Taxes, and Costs

Operating costs vary widely by location.

📌 Compare:
✅ Minimum wage laws
✅ Payroll taxes
✅ Property taxes
✅ Local utility costs

💡 Use our FREE underwriting calculator to make sure the numbers work before you commit.

Step 6: Map the Competition

Don’t just search “assisted living near me” on Google—dig deeper.

📌 How to research:
✅ Use your state’s list of licensed facilities
✅ Check occupancy rates if available
✅ See if there’s a specific need you can fill (like memory care or small-home living)

💡 Big-box facilities in the area aren’t always a sign the market is good for you. Do your own homework.

Step 7: Measure Search Interest & Local Buzz

Online interest can give you a clue about demand.

📌 Check:
✅ Google search trends for “assisted living” in your area
✅ What local discharge planners and social workers are saying
✅ Senior center requests and community needs

💡 If people are already searching for the kind of care you offer, you’ll fill rooms faster.

Next Steps: Putting It All Together

Here’s your mini plan to find the perfect location:
1️⃣ Shortlist three cities or neighborhoods.
2️⃣ Pull the demographic, affordability, zoning, and wage data for each.
3️⃣ Score them and pick your top one.
4️⃣ Visit in person (or use Street View) to get a feel for the area.
5️⃣ Run the numbers with an underwriting calculator to confirm it works.

Take Action Today 🚀

If you want to launch your assisted living business in the next 12 months:
✅ Step 1: Download the Business Plan Checklist to start planning.
✅ Step 2: Apply to join the Assisted Living Investing Mastermind for expert coaching.
✅ Step 3: Follow this guide, take action, and bring your vision to life!

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