Is Owning an Assisted Living Facility Profitable? Here’s What You Should Know
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 26, 2025
- 2 min read
Owning an assisted living facility can be both rewarding and profitable, but it comes with unique challenges and costs. Understanding the financial landscape is essential for making informed decisions and running a sustainable operation.
This guide explores profitability, expenses, revenue potential, and risk management for facility owners.
Factors Affecting Profitability
Profitability varies depending on multiple factors:
1. Location
Facilities in high-demand areas or regions with a growing senior population generally see higher occupancy and revenue.
2. Facility Size and Capacity
Larger facilities can benefit from economies of scale, but also require higher upfront investment and operational costs.
3. Services Offered
Specialized services like memory care, rehabilitation, or luxury accommodations can increase revenue but may require additional staffing and certifications.
4. Operational Efficiency
Efficient staffing, streamlined administrative processes, and optimized scheduling reduce costs and improve profitability.
Revenue Potential
Revenue is generally generated through monthly resident fees, which vary based on services, room type, and level of care. Average monthly fees range from $3,000 to $7,000 per resident, with higher rates for specialized memory care or premium accommodations.
Maintaining high occupancy rates is critical. Even a few unfilled rooms can significantly impact profitability.
Optimize Occupancy – Use targeted marketing and referral networks to attract residents.
Diversify Services – Offer specialized programs to increase revenue streams.
Control Operational Costs – Monitor staffing efficiency, utility usage, and supply expenses.
Invest in Staff Training – Well-trained staff improve care quality, satisfaction, and retention.
Protect Your Investment – Mitigate financial risk through comprehensive insurance coverage.
Protect Your Assisted Living Facility with Wexford Insurance
Running an assisted living facility comes with risks including liability claims, employee injuries, and property damage. Wexford Insurance specializes in helping assisted living and senior care owners nationwide find insurance coverage tailored to their needs.
Key policies include:
General Liability – Protects against client or visitor claims
Commercial Property – Covers your building and assets
Workers’ Compensation – For employee injuries
Professional Liability – Covers errors or omissions in care
Commercial Auto – For vehicles used to transport residents or staff
Final Thoughts
Owning an assisted living facility can be profitable with the right planning, service offerings, and operational efficiency. Understanding costs, managing staff and occupancy, and protecting your business with Wexford Insurance are key steps toward long-term success.
Contact us today.
