Is a Six-Bed Assisted Living Facility Profitable?

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Starting a six-bed assisted living facility sounds like a great way to break into the industry. But is it actually profitable? Will the numbers work in your favor, or will you struggle to make ends meet?

In this guide, we’ll break down the real costs, revenue potential, and key factors that determine whether a six-bed assisted living business can generate strong profits.

Let’s dive in! 🚀

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The Reality of a Six-Bed Assisted Living Facility

A six-bed residential assisted living facility is one of the most common entry points for new operators. The lower upfront costs and fewer regulatory hurdles make it attractive, but profitability depends on several factors:

✅ Resident Rates – How much can you charge per resident in your area?
✅ Operating Costs – Staffing, rent/mortgage, food, insurance, and more.
✅ Occupancy Rate – Can you keep all six beds filled consistently?
✅ State Regulations – Some states cap how much care you can provide in smaller facilities.

Now, let’s break down the numbers.

How Much Can You Make with a Six-Bed Facility?

Let’s say you’re charging $4,500 per resident per month (which is a reasonable rate in many areas).

📌 Revenue Calculation:

6 residents x $4,500 = $27,000 per month

That sounds great—but what about expenses?

📌 Estimated Monthly Costs:

Staffing (Caregivers & Admin): $12,000 - $15,000
Rent or Mortgage: $3,000 - $6,000
Utilities, Food, & Supplies: $2,000 - $3,500
Insurance & Licensing Fees: $1,000 - $2,000
Marketing & Miscellaneous Costs: $1,000 - $2,000

📌 Total Expenses: $19,000 - $28,500

This means your profit margin could range from negative (-$1,500) to around $8,000 per month—depending on your costs and occupancy.

So, is it profitable? Yes—but only if you manage costs wisely and maintain full occupancy.

Key Factors That Impact Profitability

If you want to succeed with a six-bed facility, here are the biggest factors to focus on:

1️⃣ Location & Market Rates

Your local market determines how much you can charge per resident. Research your area to find out:
✅ What’s the average cost of assisted living in your city?
✅ How many other facilities exist?
✅ Is there demand for senior care?

💡 Pro Tip: Use the Underwriting Calculator to analyze financial feasibility before you invest.

2️⃣ Staffing Costs

Staffing is your biggest expense—and you can’t cut corners here. To reduce costs:
✅ Consider a live-in caregiver model if your state allows it.
✅ Hire part-time caregivers during non-peak hours.
✅ Handle some administrative work yourself in the beginning.

💡 Need help structuring your team? The Business Plan Checklist walks you through staffing decisions.

3️⃣ Keeping Beds Full (Occupancy Rates)

Empty beds mean lost revenue. To maximize profitability:
✅ Build relationships with hospitals, social workers, and referral agencies.
✅ Invest in local marketing and an online presence.
✅ Offer competitive care and amenities to attract long-term residents.

4️⃣ Licensing & Compliance

Each state has different regulations for six-bed facilities. Some states limit the level of care you can provide, impacting your ability to charge premium rates.

Before you start:
✅ Research your state’s licensing requirements.
✅ Make sure your business model aligns with regulations.
✅ Plan for compliance costs (insurance, inspections, safety upgrades).

The Best Ways to Increase Profitability

Even with a small facility, you can maximize profits by:

✅ Offering premium services (memory care, transportation, specialized diets).
✅ Reducing unnecessary expenses without sacrificing quality care.
✅ Expanding to multiple locations once your first home is profitable.

🚀 Ready to Launch Your Assisted Living Business?

Take these next steps:

✅ Step 1: Download the Business Plan Checklist to map out your strategy.
✅ Step 2: Use the Underwriting Calculator to check financial viability.
✅ Step 3: Apply for the Assisted Living Mastermind Program for expert coaching and step-by-step guidance.

Your assisted living journey starts now—let’s make it profitable! 💡

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