How much does it cost to start a sober living home?

One-time opening costs

These are the example numbers our planning model starts with for an 8-bed leased house, with the certification line updated to TROHN's currently listed fee:

Item	What it covers	Example
Lease deposit and first month	Security deposit and the first month's rent before anyone moves in	$5,000
Beds, furniture and linens	Bed, mattress, linens, dresser and storage for each bed (about $750 a bed here), plus common-room furniture	$6,000
Fire safety	Smoke and carbon monoxide alarms, extinguishers, posted exit routes, safety lighting	$800
Certification	In Texas, TROHN listed $1,000 plus $15 per bed for its self-guided online application as of October 2026 (8 beds: $1,120). Check the current fee.	$1,120
Insurance down payment	First payment on property or renter's and general liability coverage written for recovery residences	$1,500
Subtotal	Before attorney, consulting and the items below	$14,420

Then add what the model doesn't price, because it varies too much to guess:

• Attorney review of the lease (the owner's written OK for sober-living use) and the resident agreement. Get a flat quote.
• Household and kitchen supplies, drug test cups and breathalyzer, naloxone, a first aid kit, locking storage and a lockbox for each resident's medications.
• Rent software or a ledger for fees, receipts and balances.
• Forming the business. In Texas, these are the state fees on our roadmap:

Step	Fee and who charges it
File the certificate of formation with the Texas Secretary of State	$300 filing fee (Texas Secretary of State)
File an assumed name certificate if you'll use another name	$25 filing fee (Texas Secretary of State) (changes; we check the current fee)
Get an EIN from the IRS	Free

• Consulting, if you want help: our Recovery Residence Launch is $3,500 flat, half at signing and half when the house opens.

Monthly costs

Item	What to count	Example a month
Lease	Rent or mortgage, plus property tax and HOA if you own	$3,200
Utilities and internet	Electric, water, gas, trash, internet; usually included in residents' fees	$600
House manager	Pay, stipend or rent credit (see paying a house manager)	$800
Insurance	Monthly share of every policy	$350
Drug test supplies	Cups, breath tests, lab confirmations	$150
Household supplies and repairs	Cleaning and paper goods, maintenance, pest control, lawn, replacement furniture	$300
Total		$5,400

The lease is 59% of the monthly cost in this example, which is why the house you choose decides whether the business works. Also budget a share of certification renewal, software, accounting and a repair reserve.

Revenue: the rent math

The formula from our budget template:

Monthly revenue = beds × occupancy × weekly rent × 52 ÷ 12 × percent collected

For the example: 8 beds × 85% × $175 × 52 ÷ 12 × 92% = about $4,744 a month. Each input is a decision:

• Beds: set by bedrooms that meet fire and occupancy rules, and by your city's rules. Ask the city in writing before you sign (see state and city rules).
• Weekly rent: what residents in your market actually pay for what you include. Call other homes and ask.
• Occupancy: no house is full every week. Residents leave, move up, return to treatment. Plan below 100%.
• Collected: fees written in the resident agreement, a receipt every time, and a conversation before a due date is missed keep this high. The model starts at 92%.

Break-even, and why 8 beds is tight

Break-even filled beds = monthly costs ÷ (weekly rent × 52 ÷ 12 × percent collected). For the example: $5,400 ÷ ($175 × 4.33 × 92%) = 7.7 filled beds, or 97% of an 8-bed house. Here's what moves the monthly result, run through our model with everything else unchanged:

Scenario	Collected a month	Net a month
The example: 8 beds, $175 a week, 85% full	$4,744	−$656
Occupancy up to 95%	$5,302	−$98
Rent up to $200 a week	$5,422	+$22
10 beds at the same costs	$5,930	+$530
10 beds at $200 a week	$6,777	+$1,377

The takeaway: a small house with a full-price lease has almost no margin for an empty bed. A house that fits two more beds within the occupancy rules, at similar rent, changes the picture. A bigger house usually costs more to lease, so re-run the numbers with the real quote.

Run your own numbers

Change any number; the results update as you type. Nothing you enter is sent or saved.

Beds Weekly rent per bed ($) Occupancy (%) Rent collected (%) Monthly costs ($) One-time opening costs ($) Months to fill the house

Same method as our planning model: revenue ramps up evenly over the months to fill the house; rent is collected the month it's due; cash needed is the deepest point of the running total, opening costs included. An estimate, not a promise.

Cash you need before it pays

Opening costs are only part of the cash. The house also runs at a loss while it fills. In the 10-bed scenario above, with $14,420 of opening costs and three months to fill, the running total bottoms out at about $19,300 in month two before the house starts covering its costs; at about $530 a month after that, it takes roughly three more years to earn that back. Plan for:

• Opening costs, plus attorney and any consulting.
• Losses while the house fills. Our model assumes three months; use your own estimate.
• A reserve for a slow month, a major repair, or a resident who leaves owing fees.

Improving the math, legally

• Choose the house for the numbers: beds the city and fire code allow, at a lease the rent can carry.
• Keep beds full by being a house people want: clean, safe, fair rules, a good house manager, and relationships with courts, community groups and programs built on how residents do. Certification helps families and referral sources trust you; in Texas it's also required for state money (see what TROHN certification unlocks).
• Collect what's owed: fees in writing, receipts every time, a written late policy within your state's limits, and an early conversation when someone falls behind.
• Never fill beds with money. Paying for referrals, giving free or discounted rent to residents of a particular program, or taking anything from a lab for your drug tests is a federal crime under EKRA (18 U.S.C. 220), whoever pays for the care. Texas adds the Patient Solicitation Act.
• Apply for funding that fits. Public money comes with standards; in Texas, a house must be accredited to receive state money under Health and Safety Code chapter 469 (HB 299). Ask your state's behavioral health agency what's open.

Lease or buy?

	Lease	Buy
Cash to start	Deposit and first month	Down payment and closing costs, usually far more
The owner's OK	Required in writing for sober-living use; without it the owner can end the lease	Yours, but check HOA rules, deed restrictions and your lender's terms
Insurance	Renter's and liability; the owner may require you to name them	Property and liability; the lender will require coverage
Risk	Easier to walk away if the house doesn't work	Equity if it works; a property to sell if it doesn't

Either way, get the city's written answer on zoning and occupancy first, and have an attorney read the lease or purchase contract. The first thing our Recovery Residence Launch builds is this budget and break-even, for the actual house you're considering, before you sign.

Or book a free 30-minute call with the house you're considering and we'll run the numbers with you.

Questions

How much does it cost to open a sober living home?

In our planning model's example 8-bed leased house, opening costs are about $14,400 before attorney and consulting fees, and monthly costs about $5,400. Your numbers depend on the lease or purchase, the bed count and your market. Plan for losses while the house fills, and a reserve.

How much do sober living homes charge?

It varies by market and by what's included. Our model's example uses $175 a week per bed, but use what residents in your area actually pay for similar houses: call other homes and ask what's included.

Are sober living homes profitable?

They can cover their costs and pay the owner when the lease fits the rent, beds stay filled and fees are collected, but it's tight. In our example, an 8-bed house at $175 a week and 85% full loses about $650 a month; 10 beds at the same costs makes about $530. Never try to fill beds by paying for referrals.

Does insurance pay for sober living?

Usually residents or their families pay the fees. Some public programs and grants help with recovery housing, and they usually require standards such as certification. A house that isn't a licensed treatment provider doesn't bill health insurance for rent.

How many beds does a sober living home need?

Enough that the house covers its costs with a bed or two empty. Divide monthly costs by what one filled bed collects in a month; then add room for vacancies. Your city's occupancy rules and fire code set the ceiling.

Sources

• Cima Consulting planning model (example starting numbers for a recovery residence, 2026) and budget template; replace every figure with your own quotes
• Texas Recovery Oriented Housing Network, Certification packages and pricing (listed fee as of October 2026)
• Texas Legislature, HB 299 (2023), enrolled text; Texas Secretary of State, sos.texas.gov
• 18 U.S.C. 220 (EKRA); Texas Occupations Code chapter 102
• SAMHSA, Best Practices for Recovery Housing (2023)

Cima Consulting isn't an accounting firm or a law firm. Have your CPA check your budget and your attorney review your lease.