How to Open a Sober House

Recovery Housing Financial Calculator

Recovery Housing & Sober Living Financial Calculator Image

Property Feasibility

Can This Home Work as Recovery Housing?

Before you buy, lease, renovate, or partner with an operator, get a first look at the numbers that matter.

If you’re evaluating a property for recovery housing, also known as sober living, the first question is simple: Can this home work, and what might the numbers look like?

1

Capacity

2

Rent

3

Expenses

4

Income

Our Recovery Housing Financial Calculator gives you a fast, practical first-pass projection so you can estimate bed capacity, rent revenue, operating expenses, and net income without building a spreadsheet from scratch.

Use the calculator to sanity-check a property, compare neighborhoods, and decide whether to lease, buy, or partner with an operator.

Start Your Recovery Housing Financial Projection

Complete the short form to access the calculator and begin estimating bed capacity, rent revenue, operating expenses, and projected income for your property.

About the RHFC

What the Calculator Helps You Estimate

When you complete the short form embedded on this page, you’ll receive a custom financial projection sent to your inbox. The projection is designed to help you sanity-check a recovery residence concept and understand what may be possible for a specific address.

Your Estimate Will Include:

  • Estimated bed capacity based on square footage or an exact bed count you provide.
  • Estimated rent revenue based on median rent for your area or your chosen weekly rent.
  • Typical operating expenses based on size and capacity, with optional overrides you can provide.
  • Projected net income showing a simple view of what’s left after expenses.

Who This Is For

The calculator is especially useful if you’re:

  • Exploring a conversion and want a realistic first-pass projection.
  • Comparing multiple properties or neighborhoods.
  • Deciding whether to lease, purchase, or partner with an operator.
  • Trying to align a real estate plan with real recovery impact.

You don’t need to have everything figured out. The form supports rough-draft inputs, and if you leave certain cost fields blank, the projection will still come back complete using standard assumptions.

What You’re Asked, and Why

The form takes about five minutes and covers three simple areas:

  1. A few details about you.
    This helps us deliver your projection and understand where you are in the process, so the estimate matches the kind of decision you’re trying to make.
  2. Property basics.
    You’ll enter the property address and state so the estimate can reflect local rent assumptions and the specifics of the home you’re evaluating.
  3. Capacity, rent, and optional cost inputs.
    You can choose the approach that fits your situation. Enter total square footage or an exact bed count. Provide median monthly rent for your area or override with an exact weekly rent you plan to charge. Add any monthly utilities or operating costs you already know, or skip them.

What Happens After You Submit

After you click Get My Financial Projection, your results will be emailed to you within minutes. If you don’t see it, check spam or promotions, and feel free to bookmark this page to run additional scenarios for other properties.

Frequently Asked Questions About Sober Living Financial Projections

Can a sober living home be profitable?

It can be. Recovery housing earns rent per bed rather than per unit, so a well-run home with steady occupancy can produce strong gross income. Results depend on bed capacity, local rent levels, operating costs, insurance, and how consistently beds stay filled, which is why a property-specific projection matters before you commit.

How do you estimate revenue for a recovery home?

Multiply the number of beds by the weekly rent per bed, then by an expected occupancy rate, then by 52 weeks. Use a conservative occupancy rate for planning: VSL’s Rent and Startup Cost Index models a 14-bed home at 82 percent occupancy. Then compare that revenue against realistic monthly expenses.

What expenses belong in a sober living financial projection?

Include rent or mortgage, utilities, insurance, maintenance and repairs, household supplies, cleaning, technology, and turnover costs such as linens and deep cleans. Plan for house mentor coverage, fire and life safety compliance, inspections, and a reserve for major repairs. Leaving these out makes a projection look stronger than the home will perform.

How is weekly rent per bed set for a sober living home?

Weekly rent usually tracks local housing costs. VSL’s Rent and Startup Cost Index models each state’s weekly bed rate from median gross rent in Census Bureau American Community Survey data, calibrated against a market survey of 180 recovery residences. Operators then adjust for the home’s level of support, location, and amenities.

What is a good profit margin for sober living?

There is no single benchmark, because homes differ in services, staffing, market rents, and property type. A healthy margin is one that holds after funding reserves, compliance, and the house mentor support the home needs. If a model only works at full occupancy or ignores maintenance and safety costs, the margin is fragile.

Research & Sources

  1. Foote, H. T. (2026). Vanderburgh Sober Living Rent & Startup Cost Index, 2026 edition. Vanderburgh Sober Living. https://www.vanderburghhouse.com/research/rent-startup-cost-index-2026/
  2. Lo Sasso, A. T., Byro, E., Jason, L. A., Ferrari, J. R., & Olson, B. (2012). Benefits and costs associated with mutual-help community-based recovery homes: The Oxford House model. Evaluation and Program Planning, 35(1), 47–53. https://doi.org/10.1016/j.evalprogplan.2011.06.006
  3. National Alliance for Recovery Residences. (2018). NARR standard 3.0. https://narronline.org/wp-content/uploads/2024/05/NARR-Standard-3.0.pdf
  4. Substance Abuse and Mental Health Services Administration. (2023). Best practices for recovery housing. https://www.samhsa.gov/resource/ebp/best-practices-recovery-housing
  5. U.S. Census Bureau. (n.d.). American Community Survey (ACS). https://www.census.gov/programs-surveys/acs