What valuation multiples are used for assisted living facilities?
Direct answer
Assisted living facilities are valued mainly with cap rates: value equals net operating income divided by the cap rate. A cap rate works like an inverse multiple, so a 7% cap rate is about 14.3 times NOI. Buyers cross-check with price per unit or per bed, and sometimes with EBITDA multiples for the operating business.
What to know
Cap rates vary by care type and market: about 7.0% for core assisted living, 8.5% to 10% or more for rural assisted living, and 5.5% to 7.0% for CCRCs.
Lower cap rates mean higher multiples and higher value.
Per-unit comps, such as $120,000 to $200,000 or more per unit for Class A metro assisted living, are cross-checks, not the main method.
How Haven helps
Haven applies current cap rates and comparable sales to your community's actual income. See What's My Property Worth.