Straight answers
The real questions people ask about opening a care home in Texas — answered to the dollar, verified, no coach.
Cost
How much does it cost to start a care home in Texas?
The exact government fees to start a Texas care home are small: a $300 LLC, $39.75 per background check, and — only for licensed assisted living — a $300 base license fee plus $15 per bed (capped at $2,250 for 3 years). The bigger numbers are variable: the property, any required modifications, and insurance.
Licensing
Do I need a license to open a care home in Texas?
In Texas, you do not need a state assisted living license to care for 3 or fewer residents — you simply enroll with HHSC as Adult Foster Care. The 4th unrelated resident is the line: at four or more, you need a Type A or Type B assisted living license (Texas no longer issues the old Type C).
Licensing
Type A vs Type B assisted living in Texas: what is the difference?
The difference between a Type A and Type B assisted living facility in Texas is the residents they can serve. Type A residents must be able to evacuate without staff help and need no nighttime attendance. Type B residents may need evacuation assistance or overnight care — so Type B requires awake night staff and stricter building standards.
How to start
How to start an assisted living facility in Texas
To start an assisted living facility in Texas: form a Texas LLC ($300), pick the right license (Adult Foster Care for 1–3 residents needs none; 4+ needs a Type A or Type B ALF license at $300 + $15/bed), ready a property that meets HHSC physical standards, complete the pre-licensure training, then pass the Life Safety Code and Health surveys to get licensed.
Group homes
How to start a group home in Texas
How you start a group home in Texas depends on who you serve. For seniors, a 1–3 resident home needs no license (Adult Foster Care); 4+ needs an assisted living license. For adults with intellectual or developmental disabilities, you become an HCS provider (up to 4 residents per home) or open a licensed ICF/IID.
Cost
Is a Texas care home profitable? What owners actually make
A Texas care home can be profitable, but it is a real operating business, not passive income. Private-pay assisted living in Texas averages around $5,250 per resident per month, with memory care 10–30% higher. Margin comes down to occupancy, your payer mix (private pay vs. Medicaid), and labor — staffing is the biggest cost.
Funding
How do you get paid to run a care home in Texas?
A Texas care home gets paid from far more than private pay and Medicaid. Veterans can bring VA Aid & Attendance — about $2,424 a month for a single veteran in 2026. Other payers include SSI-based Residential Care, HUD housing subsidies, PACE, long-term care insurance, behavioral-health (HCBS-AMH) contracts, and re-entry housing — most operators leave several of these on the table.