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What is the Cost Per Person to Live in a Group Home?

The cost per person to live in a group home will surely vary depending on many other factors but the annual cost will range somewhere around $60,000 to $120,000, with an average cost of $77,750 a year for a full-time help facility, with adequately skilled nursing homes being very expensive, especially when compared to both assisted living or personal care.

However, a good number of government programs are available to help cover some—if not all—costs for these individuals if they meet the qualifications for financial assistance. Nonetheless, regardless of how much it costs, the popular opinion is that these facilities are worth every penny.

Have it in mind that these homes are most times established in typical residential neighborhoods and tend to have the typical features of a household. But instead of traditional families, they are made up of a group of unrelated individuals who seek support services while residing at the house.

Various sorts of residents can stay at group homes at a time, including those who are physically, chronically, or mentally disabled or in drug or alcohol rehabilitation programs. Note that these homes may also house children in foster care, juvenile offenders, or troubled teens.

Ideally, when residing at the group home, individuals receive support, therapy, and training to enable them to acclimate back into the community, earn a degree, or simply maintain a stable quality of life.

Although most group homes offer long-term care, a good number of residents eventually acquire the required knowledge or skills to move to more independent life. Group homes for children are always temporary placements, offering care maybe until a foster family can come by.

Some might also return to their natural families. In some situations, halfway homes for people recently released from prison or discharged from a substance abuse program may also be referred to as group homes. These types of group homes are also transitory and not permanent.

Factors that Influence the Cost Per Person to Live in a Group Home

Just like it was stated above, the cost per person to live in a group home facility can be costly, averaging around $65,000-$120,000 annually.

However, this cost covers the entire cost per person living in the facility, including food, utilities, and the payment to the caregivers who help the residence daily. However, there are various factors that influence the cost per person to live in a group, and they include.

  1. Facility Characteristics

Have it in mind that the cost per person to live in a group home will vary significantly based on the size of the facility. Note that small facilities (between 4 and 10 beds) will cost less than medium-sized facilities, large-sized facilities (26-100 beds), and also extra-large facilities (101 or more beds).

This is primarily because larger facilities may have more costly amenities and higher administrative costs. Also note that the cost per person to live in a group home will vary by chain status: chain facilities tend to charge significantly more on a monthly basis than independent facilities.

Also note that group homes with no special focus on special cases, like dementia, will more or less charge lower monthly than facilities that offer special services for people with dementia.

  1. Location

Also, have it in mind that the location of the group home can influence the cost charged per resident. Facilities located in urban cities and towns will charge significantly more than facilities in rural areas. These facilities in urban areas may face greater costs of fuel, taxes, and other public services.

Note that most group homes in the United States are freestanding, while some are located on the same grounds as a nursing home, rehabilitation facility, or a hospital.

Co-located facilities will always charge higher than freestanding facilities because co-located facilities are more or less part of multi-facility chains, need additional fees at the time of admission, offer a greater number of benefits to employees, and be more likely to offer a dementia care unit, and all these factors are associated with higher charges.

  1. Rate Structure

Note that the average cost per person to live in a group home facility may differ based on how the home structure their rates, including other factors as the types of services included, the amounts of staffing, and whether rates are adjusted by the anticipated care needs of the person.

According to reports, a good number of group homes in the United States charge a flat base rate, unaffected by the anticipated level of care needed by the individual. Meanwhile, about two-thirds of group homes require a fee at admission (entrance fee or a deposit) coupled with the base rate charged each month.

Have it in mind that group homes that charge an entrance fee or require a deposit at the time of admission always have a significantly higher average charge when compared with those that did not. According to reports, this higher average monthly charge is in addition to the needed admission fees.

Group homes are known to offer residents a certain number of services, either as part of the base rate or by offering them for purchase. These services include things like assistance with ADLs, incontinence care, or transportation to appointments, or even more medically oriented services such as skilled nursing and physical or occupational therapy.

Generally, the average cost per person to live in a group home will increase with the number of services included in the base rate, but these differences are barely statistically significant. Average monthly charges will also increase with the number of services available for purchase, and these differences will indeed be statistically significant.

  1. Staffing Level

Indeed the cost per person to live in a group home will vary based on the facility’s staffing level. Note that the greater the number of hours of direct care offered to residents, the higher the average facility charge. Direct care hours included time provided by PCAs, together with nursing staff (registered nurses/licensed practical nurses [RNs/LPNs]) and any direct care time provided by the group home director.

In addition, since group homes are expected to offer certain benefits to employees, the cost per person to live in a group home will increase with the number of employment benefits offered to workers.

Employment benefits include health and life insurance, pension, and paid time off offered to employees in these facilities. Notably, paid time off remains the most common fringe benefit offered to employees in these facilities, followed in descending order by health insurance, life insurance, and pension.

  1. Type of Group Home

There are many types of group homes, including homes for the elderly, children and teens, those with disabilities, and those who need supervision and care during the day. They also vary in type and size and offer different types of living arrangements to residents, including apartments, one-person rooms, and rooms designed for more than one person.

Note that another feature that makes these facilities feel more like home and enable residents to enjoy independence is the provision of cooking amenities in the room or apartment.

In a good number of group homes, you may find cooking amenities like microwaves, ovens, and cooktops, in their living quarters. However, note that the more these amenities available in a group home, the most expensive the cost per person to live in that home.

  1. Admission and Discharge Policies

Note that group homes are quite limited in the types of needs that they are able or willing to offer. These facilities may leverage a combination of admission and discharge policies to restrict residents to those whose needs they can meet exponentially.

Most times, these restrictions are stipulated by state licensure requirements, but other restrictions are the choice of facilities and may influence the level and type of staffing available.

These policies concern note whether individuals are able to leave the facility in an emergency without help, whether skilled nursing or check up is required on a steady basis, whether daily monitoring of health conditions is vital, whether the individuals are incontinent, whether individuals have a moderate or severe cognitive impairment, and other similar needs.

Howbeit, note that the cost per person to live in a group home will be higher in facilities that admit residents with certain specific care needs compared with those that did not, and also were significantly greater in facilities that did not discharge residents who developed the care need.

  1. Demographics

In the United States, certain resident-specific demographic and health characteristics also  influence the cost per person to live in a group home.

Residents who received any Medicaid-paid LTC in the last month will also have much lower monthly charges than individuals who did not receive any Medicaid-paid LTC, a difference of more than $730 per month. Other demographic characteristics of the facilities’ residents included gender and race.

Have it in mind that female residents tend to significantly pay higher average monthly charges when compared with male residents. Also, note that group home residents who are White and not Hispanic will pay higher monthly charges. Residents who are younger than age 65 will meanwhile pay lower monthly charges.


A good number of factors like the facility characteristics, rate structure, staffing levels, living quarters, and types of residents served, will surely influence the cost per person to live in a group home. Finding the ideal option for every situation and budget is necessary to make a reasonable decision. Fortunately, there are many options for you to choose from, so you can choose the right solution for your family.