top of page

Open Up a Halfway House
in California 

If you are looking for unique investment opportunities, there are many ways to find them. Gambling and playing the stock market may not be your thing, but there are other ways to increase your real estate investments, while helping others transition.



How to Open a Halfway House in California:

Some invest in residential and commercial properties. However, there is a new California Real Estate investment opportunity, investing in a halfway house.


If you are opening a facility in California, you will need to determine what type of individual you will be housing. Troubled teens, single mothers, former inmates, abused women, veterans etc.

Determine which licenses and zoning permits are required, develop a business plan, register your business, and meet with experts to make sure that all requirements are being met.

How to Start a Halfway House:

After finding the right property, you will have to get all the permits and licenses required. You will need to determine how many people the home can house, then begin renovations.

From there, many things must happen:

  • Purchase insurance

  • Hire a staff

  • Prepare an operating manual

  • Set up accounting

  • Coordinate schedules and programs 


Real Estate Investment Through Halfway Homes:

A unique real estate investment is investing in sober living homes and halfway houses. There are both risks and rewards, but here are some tips on getting rewards.

  • Home should have at least 3 bedrooms, two for residents the other for the house manager.

  • Find properties in turn-key condition or needing very few, minor repairs.

  • Close to public transportation.


Halfway House Business Plans:

Writing a business plan is critical. Here are some of the components you will be required to include in the business plan:

  • Overview

  • Summary

  • Services Offered

  • Mission

  • Job Roles/Responsibilities

  • Sales/Marketing Strategy

  • Sales/Income Forecast/Budget

  • Publicity and Advertising Strategy

  • Sustainability/Expansion Strategy


Halfway House Grants:

There are several different grants available for those running transitional housing. Some of the options below may be able to help with grants, others may refer you to different organizations that may help finance through grants.

Benefits of Halfway Houses:

There are many benefits to investing in a halfway house. The first is knowing that it is helping people move from a controlled environment like a jail or rehab.

The other is financial. According to, “sober homes have become lucrative business” ventures. A single bed can earn the owner up to $500. Other programs that help subsidize those in recovery can pay even more.

Helpful Resources in California:

Those considering opening one in California, have many resources available to them, including:

California Department of Reentry and Integration:

The State of California has a wide range of different programs for those in the reentry and integration programs.

Programs include:

  • Live-in programs

  • Residential programs

  • Outpatient/drop-in programs

California Business Licenses:

In California, the Department of Health Care Services (DHCS) has sole responsibility to license facilities that provide care to those in recovery.  They must meet certain parameters regarding programming, certifications, and licensing. All the information you need on opening up a halfway house in California can be found here.


SAMHSA (Substance Abuse and Mental Health Services Administration):

Those opening a substance abuse, sober home or transition home have numerous financial resources available to them. One such resource in the SANHSA grant.  More information is available at their website .


Are you looking for help opening a halfway house for passive income and help those in need in California?

Investors looking to open California-based housing can make a difference in someone’s life, while making an income. It is crucial for those people leaving rehab or jail have a strong support system. This can be a win/win for the owner and the residents.


Halfway House FAQs:

Here are some common questions that those considering investing in a halfway house in California frequently ask.


Do I need to Own Property to Start a Halfway House?

According to investment expert Keith Humes, starting a halfway house is possible for those that have a zero-down payment. He said you can open up your facility with zero out of pocket expenses. More information from Keith can be found here.

Can I get Federal Funding to Help with Starting?

Yes, there are many ways to seek funding for your venture. There are many different grants that owners of the home can apply for including, SAMHSA, United Way and Community Grants. You can visit this site for more detailed information.

Open Up A Halfway House - Video Overlay - 0 (3).png
bottom of page