How much money do you need to open an assisted living facility?
Direct answer
This answer is for investors and operators, not families. Building new costs $300,000 to $400,000 or more per unit, so a mid-size community runs into the millions. Buying an existing community is usually cheaper, and financing shapes the cash you actually need.
What to know
Construction is the expensive route. At $300,000 to $400,000 or more per unit, even a 40-unit community implies $12 million or more before land, soft costs and lease-up losses. That is one reason existing communities often trade below replacement cost, and why many entrants buy rather than build.
On the financing side, SBA 7(a) loans go up to $5 million with as little as 10% down, conventional bank loans typically require 25% to 35% equity, and HUD 232/223(f) loans offer long non-recourse terms but take six months or more to close. Budget for closing costs, licensing and working capital on top of the purchase price.
First-time owner-operators typically buy communities of 16 to 50 beds, where total capital needs stay within reach of SBA and bank financing.
How Haven helps
Haven helps buyers find existing communities that fit their capital, and connects borrowers with lenders. Haven is not a lender. Read our 2026–2027 senior housing market outlook.