How Much Does It Cost to Run a Sober Living Home?
Real numbers on sober living home costs. Covers startup expenses, monthly operating costs, revenue per bed, and when you can expect to break even.
Before you open a sober living home, you need to know the numbers. Not the inspirational stuff — the actual dollars. What does it cost to get started? What are the monthly expenses? How many beds do you need to fill to break even?
Here are the real numbers based on what operators actually spend.
Startup Costs
Getting a sober living home off the ground typically costs $10,000 to $50,000, depending on whether you're leasing or buying and how much work the property needs.
Property — If leasing, expect first month, last month, and security deposit ($3,000-$8,000 for a typical house). If buying, that's a down payment and mortgage discussion.
Furnishing — Beds, dressers, common area furniture, kitchen supplies. Budget $3,000-$8,000 for a 6-8 bed house. Buy used where possible — residents don't need new furniture.
Insurance — Liability insurance for a group home runs $2,000-$5,000/year. This is not optional.
Business formation — LLC registration, business license, EIN. $200-$500 depending on your state.
Certification — If pursuing NARR-affiliate certification, $200-$1,000 in application and inspection fees.
Technology — Sober living management software starts at $29/month. A website domain is $12/year. These are small costs that save hours of work.
Repairs and prep — Paint, cleaning, locks, safety equipment (smoke detectors, fire extinguishers, Narcan). Budget $1,000-$3,000.
Monthly Operating Costs
Once you're up and running, monthly costs for a 6-8 bed house typically look like this:
Total monthly operating cost: $2,500-$7,500
The biggest variable is your property cost. In a low cost-of-living area, you might run a home for $3,000/month. In a major metro, $7,000+.
Revenue Per Bed
Sober living rent varies by market:
For a 6-bed house charging $700/month per bed at full occupancy:
Monthly revenue: $4,200
But you won't be at 100% occupancy all the time. Realistic occupancy for a well-run home is 80-90%. So:
Realistic monthly revenue: $3,360-$3,780
Break-Even Analysis
Let's use a realistic example:
In this scenario, you need 85-90% occupancy just to break even. This is why:
2. Collecting rent consistently matters. If residents pay late or skip payments, your revenue drops below your costs. Automated rent collection with automatic late fees keeps cash flow predictable.
3. Scaling to 2-3 homes matters. A single home is tight on margins. Two homes share overhead (your time, software, insurance negotiating power) and double revenue.
When Do You Start Making Money?
Most sober living operators start seeing profit after:
The key factors:
Sober living is not a get-rich-quick business. It's a stable, meaningful business with modest margins that improve with scale. Most operators who fail don't fail because the model doesn't work — they fail because they underestimate how long it takes to fill beds and how important it is to collect rent consistently.
How RecoveryOS Reduces Your Costs
RecoveryOS replaces multiple tools and manual processes:
Starting at $29/month for a single property, it's one of the lowest costs in your operating budget — and it saves hours of administrative work every week. If you're starting a sober living home, build the right systems from day one.
Stop doing this by hand.
RecoveryOS automates rent, screening, chores, and documents. Try every feature for $1 your first month.
Start for $1 →
