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Those looking for passive income should consider opening up a halfway house. It not only should pay for itself and reap the owner a good income, but it also is a critical part of recovery for many people struggling with drug or alcohol abuse or those that have been incarcerated.

A halfway house offers support, job assistance, training programs,12-step programs, and the opportunity for a clean life.


How to Open a Halfway House in Arizona:
Those that are considering opening up a halfway house in Arizona should seek assistance from the legal community. They will guide them as to what is required from a legal standpoint. You will need to learn about the local zoning ordinances, insurance requirements, and other city and state guidelines.

You may also want to speak to those that have or currently own a halfway house or sober living home, so you can get real-life insight.













How to Start a Halfway House:
Once you have all the legal requirements in place, you will be ready to create a checklist for the next stage of planning your new venture.
Your checklist should include the following:

  • Search for an appropriate home with at least 3-4 bedrooms

  • Complete renovations as needed

  • Get all city and state licenses 

  • Purchase the proper insurance

  • Hire knowledgeable staff

  • Create an operations’ manual

  • Hire an experienced accountant

  • Make sure the house stays up to date on all guidelines

Real Estate Investment Through Halfway Homes:
Most of those looking to invest in a halfway house purchase the property as the liability is usually cost preventative to rent a property.

We are seeing that during and after COVID-19, many have turned to alcohol and drugs as a way to cope. The homeless rate has also increased, so the need for housing for those in need has increased.

One thing is certain, there is a serious need for halfway homes in Arizona. They provide guidance to those in need, so chances are you will rarely have open rooms. The more rooms and beds occupied, the better your real estate investment. The goal is to keep the house full so that it pays for itself.

Halfway House Grants:
There are a variety of different sources for grants that are available to those that are running a halfway house or sober living home. These include:


Benefits of Halfway Houses:
A well-run halfway house can be a great investment for the owner, but is a much-needed resource for those in need. Many are not yet ready to live on their own.
As long as the halfway house is full and earning enough to be profitable and pay for itself, it is a solid financial venture.

Helpful Resources in Arizona:
There is a wide range of helpful resources for those considering opening a halfway house in the state of Arizona. These include:


Arizona Department of Reentry and Integration:
The goal of the reentry and integration program in Arizona is to provide a second chance to those that have had problems with the law and been incarcerated. Many times, those people cannot go back to their previous homes or need new environments to maintain their sobriety and get back on the right road. 

The state of Arizona created Second Chance Centers which offers inmates a 10-week program to help them get ready to rejoin the community and find viable jobs when they are released.


Arizona Business Licenses:
Just like all states and municipalities, Arizona has a very clear-cut set of rules and guidelines when it comes to business licenses. All the information a prospective halfway owner needs to do is look at their fact sheet, which is online.


SAMHSA (Substance Abuse and Mental Health Services Administration):
SAMHSA Offers several grant options through three channels: The Center for Substance Abuse Prevention, the Center for Substance Abuse Treatment, and the Center for Mental Health Services. It is worth looking into this particular grant.


Are You Looking for Help Opening a Halfway House for Passive Income and Help Those in Need in Arizona?
Most owners leave the day-to-day running of the halfway house to the administrator and have little to do other than keep the property well-maintained and licenses current. Other than that, owning a halfway house can be a fantastic source of passive income.


Halfway House FAQs:
Do I need to Own Property to Start a Halfway House?
Most people find it advantageous to own the property as liability for renting would be awfully expensive. For more information, Keith Humes is an expert in this field and all you need to learn to get started is just a click away.

Can I get Federal Funding to Help with Starting?
There are many federal funding resources available to those that are starting a halfway house so make sure you know what they are and apply for them.

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