Type B Assisted Living Facility

Memory care & higher-acuity seniors — 24/7 awake staff required

State Licensed — Memory Care

To open a Type B Assisted Living Facility in Texas, you need a license from Texas HHSC. It serves up to 16 residents, and the exact government fees total about $762 (HHSC Type B License: $300 base + $15 per bed (26 TAC §553.47), 3-year cycle. Alzheimer's certification: additional $300 per cycle (26 TAC §553.47(c))). Below is every step, fee, and official link.

Reviewed by Erika Crossley, Texas senior care startup specialist · Information last verified June 2026

Path

Advanced path

Gov't fees (total)

$762

State license

Required

Max residents

Who this serves

Elderly adults who need nighttime staff assistance, cannot self-evacuate, or have dementia/Alzheimer's

Best fit: Someone targeting the memory care market — higher rates, larger demand, more operational complexity

Common questions about opening a Type B ALF in Texas

Do I need a license to open a Type B ALF in Texas?

HHSC Type B License: $300 base + $15 per bed (26 TAC §553.47), 3-year cycle. Alzheimer's certification: additional $300 per cycle (26 TAC §553.47(c)).

How much does it cost to open a Type B ALF in Texas?

The exact government fees total about $762. On top of that, variable startup costs (insurance, any required modifications, and similar) depend on your property and market. Government fees are fixed; variable costs are estimates.

How many residents can a Type B ALF in Texas have?

17+ requires Type B Large with NFPA 13 full commercial sprinklers

How much can a Type B ALF earn per resident in Texas?

Roughly $3,500–$7,500 per resident per month, depending on private pay vs. Medicaid, acuity, and your market.

Actual Costs

Government fees are exact. Variable costs are estimates — tips show how to minimize them.

EXACT

Government Fees — You Will Pay These

HHSC Type B License (8-bed facility)

$300 base + $15 × 8 beds (26 TAC §553.47). Alzheimer's certification: additional $300/cycle (26 TAC §553.47(c)).

$420

per 3 years

HHSC Type B License (16-bed facility)

$300 base + $15 × 16 beds (max $2,250)

$540

per 3 years

Texas LLC Formation (SOS filing)

$300

one time

DPS Background Check

Required for owner and all direct care staff ($11.50 IdentoGO + $15.00 DPS + $13.25 FBI = $39.75)

$39.75

per person

HHSC Life Safety Code Inspection

No state inspection fee

one time

HHSC Health Survey Inspection

No state inspection fee

one time

Local building permit (for renovations)

Only if making structural changes

$75–500

one time

Guaranteed minimum (gov't fees)

$762

VARIABLE

Costs That Depend on Your Property & Choices

Sprinkler system (per applicable NFPA standard)

$10,000–$22,000/one time

Coverage follows the applicable NFPA standard and the HHSC Life Safety Code checklist (PR-2389). We connect you with licensed contractors and pull quotes for you.

Fire alarm system

$2,500–$6,000/one time

Licensed fire alarm contractor required

General liability + E&O insurance (memory care)

$4,800–$9,600/annual

Memory care premiums are higher — Markel and Philadelphia Insurance specialize in this

Awake night staff labor

$24,000–$42,000/annual

This is your largest ongoing cost — must be awake, not on-call. Budget for 2 shifts minimum.

Bedroom & common area furnishings

$10,000–$25,000/one time

Larger bedrooms (100 sq ft) = more furnishing cost

Physical & Building Requirements

Stories allowed

Any with proper egress

Sq ft / resident (single room)

100 sq ft min

Sq ft / resident (shared room)

80 sq ft min

Bedroom min width

10 ft

Bathroom ratio

1 toilet + 1 sink per 6 residents; 1 tub or shower per 10 residents

Sprinklers

Sprinkler coverage per the applicable NFPA standard (a new small Type B may use NFPA 13, 13R, or 13D, like Type A) and the HHSC Life Safety Code checklist (PR-2389)

•Single bedroom: 100 sq ft minimum (larger than Type A)
•Shared bedrooms: 80 sq ft per resident (larger than Type A)
•Minimum bedroom width: 10 feet (vs 8 for Type A)
•Night staff MUST BE AWAKE — not on-call, not sleeping nearby
•Sprinkler coverage follows the applicable NFPA standard and the HHSC Life Safety Code checklist (PR-2389)
•Basements cannot be used for resident bedrooms or living space

Can I Use My Home?

✓

1-Story Home

✓

2-Story Home

3,000

sq ft minimum

bedrooms

→1-story preferred — simpler egress, easier overnight supervision
→2-story: requires full fire alarm + evacuation plans + more complex overnight staffing
→Needs more sq footage per resident than Type A (100 vs 80 sq ft)
→Memory care staff require annual dementia/Alzheimer's training (verify current required hours with HHSC)

Why operators choose this

+Can serve memory care / dementia residents — the fastest-growing care segment in Texas
+Higher revenue: up to $7,500/resident/month vs $5,500 for Type A
+Alzheimer's certification included at no extra licensing cost
+Same licensing timeline as Type A — no extra bureaucracy

Know before you start

–Awake night staff 24/7 is a significant ongoing labor cost
–More stringent sprinkler and bedroom sq footage requirements
–Higher insurance premiums for memory care
–Largest ongoing cost is labor, not facility — plan staffing budget carefully

Key Restrictions — Know These Before You Start

!Night staff MUST BE AWAKE at all times — cannot be sleeping on-call
!Cannot serve bedfast residents requiring daily nursing care
!Larger minimum bedroom size than Type A (100 vs 80 sq ft)
!Sprinkler coverage must meet the applicable NFPA standard and the HHSC Life Safety Code checklist (PR-2389)
!Dementia specialization requires annual dementia/Alzheimer's training for staff (verify current required hours with HHSC)

Apply Directly

Every link goes to the exact page — no searching.

We keep these links and fees current — regulations change, so we re-confirm yours when you start.

Revenue Potential

Per resident / month$3,500–$7,500

At capacity (16 residents)$120,000/mo

Guaranteed gov't fees total$762

License

State License Required

HHSC Type B License: $300 base + $15 per bed (26 TAC §553.47), 3-year cycle. Alzheimer's certification: additional $300 per cycle (26 TAC §553.47(c)).