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How Much Profit Can Be Made From A Halfway House?



Is There a Current Need for More Halfway Homes?

Do you own sizable property that can be converted to a halfway house? Do you currently make at least 100 thousand dollars per year? Do you have a passion for helping recovering addicts become independent after rehabilitation discharge?


Did you know that the opioid epidemic is rising? COVID-19 may be part of the problem.

A halfway house can be created for another reason, to help the incarcerated discharged from prison or jail for nonviolent crimes transition back into society.


Often, individuals addicted to drugs and or alcohol have completed their rehabilitation and are discharged back into the mainstream public. It is to their benefit that they move into a halfway house. The facility helps the recovering addict towards gradual and more complete independence and lowers the relapse risk.


Quality halfway homes are in demand, and we need more quality homes. We can help you established yourself in this industry. The financial benefits of owning a halfway house are great. However, the economic benefits are not the sole purpose of owning and operating a facility.


The most important service is to help individuals become more robust with a gradual increase in independence away from drugs, alcohol, or both. We believe you must have a desire and devotion to helping people recover. Even though a halfway house creates a financial benefit for you, this reason sits low on your priority list of creating a safe haven for recovering addicts. The economic benefit must be recognized later and not as your sole purpose in life.


We find that there are too many facilities that are less than appropriate. These owners do not have the well-being of their clients at the top of their priority list. Quality, sober-living homes are in demand to provide the addict, under supervision, a safe transition to independent living without substance abuse.


What does a safe house do for recovering addicts?

You offer a safe haven and 24/7 supervision in a substance-free setting. Your staff is highly trained, certified, or licensed and share your passion for helping addicts transition back into healthy and independent living. If a client needs counseling, they get counseling. Your home provides mandatory and frequent drug testing. Your home follows your state's rules and regulations, including random yearly inspections and an accreditation process.





How Much Money Can Be Made with a Halfway House?

It would be unfair not to consider the money made in a halfway house. You must profit to pay the bills and yourself. Your halfway house is a business. Your business must meet its financial obligations and provide to your clients what is promised to them when they move into your home.


It all depends if you recognize your business as a profit or not-for-profit. Either way, you must file the proper paperwork with your state and Internal Revenue Service. If you file as a nonprofit, it means you do not pay taxes. However, your profits cannot benefit you, and all profits made must be reinvested back into the business. You cannot pocket any profits.

The state rules and regulations are becoming stricter related to licensing standards, trained and certified staff—most states require in-house professionals and structured programs for the clients. There are still unlicensed homes in operation. However, the rules and regulations are becoming tighter for the good of the clients living in any facility.


There are many considerations if you register your halfway house as a for-profit business, such as your location, the number of residents living in your home, the cost of property and furnishings, food, utilities, and how much your clients can pay or are willing to pay.


Sober homes are indeed a lucrative business. Unfortunately, there are a few homes in it for the money and nothing else. Some reported homes have no running water, no heat, or air, no electricity, and one bathroom, maybe, to serve over a dozen people. These homes are supposed to help the addict get back on their feet and enter society as a productive citizen. Homes of this type do not fill the bill.


A quality halfway house has lots of bedrooms, situated away from the city life's hustle and bustle. A rural setting is perfect. A quality facility can net the owner at least $40,000 per client per year or up to $10,000 a month. Never lose the reason why you want to run a halfway house. Yes, money is naturally in the equation, but it is never, ever the priority. There are too many facilities just trying to make a fast buck.


Give Back to Your Community by Opening a Halfway House

We need more quality halfway houses to help addicts transition. Some cities across America are trying to close up quality halfway houses. These houses serve as an important reminder that bad things do happen to good people. Due to the recent COVID-19 pandemic, more people turn to drugs and alcohol and need immediate help. Treatment centers are closed or are operating at half capacity. Where do people go to transition from rehabilitation into society again? The closing of excellent facilities is a big problem that you can help with by opening up a halfway house for recovering addicts. We can help you create a quality halfway house, and you can give back to your community a needed service.

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