Is a nursing home a good investment?
Direct answer
A nursing home can be a good investment for experienced operators and investors who understand reimbursement and regulation. Most revenue comes from Medicare and Medicaid, so returns depend on state Medicaid rates, payor mix and survey performance. Higher cap rates, about 8% to 17% depending on the state, reflect that risk.
What to know
Opportunity: skilled nursing trades at lower prices per bed, about $30,000 to $80,000, which can mean higher yields.
Risk: changes in reimbursement, staffing costs and inspection results hit income directly.
Barriers: certificate-of-need rules limit new beds in many states, which can protect existing facilities.
Most investors partner with an experienced operator and a licensed nursing home administrator.
How Haven helps
Haven brokers skilled nursing facilities with 16 or more beds. Read our senior housing market outlook.