I know a guy in Miami that invested in 4 sober living homes and this is everything I learned:
– Rent is $190/week per bed. 12 beds per home, on average. 100% occupied.
– Heroin addicts make the toughest residents, and are most likely to relapse. Evictions are as frequent as you’d expect.
– The whole model is designed to stuff a house with as many beds as legally allowed.
– Cash flow potential is higher than a normal rental, but not without headaches.
– Every home needs a live in manager that gets free rent. They oversee discharges, accountability, chores, etc.
– Properties must be zoned accordingly, but many municipalities offer protection against sober living housing discrimination.
– Although this is a fairly profitable biz, it’s a labor of love. Many operators are recovering addicts themselves, or were directly affected by it.
– Many operators don’t even own the homes, but work out a deal with the landlord. Similar to AirBnB house hacking.
– About 50% of residents pay rent via friends and family, and the other half are covered by treatment centers
Everything I read pointed to there being nowhere near enough supply.
I’m grateful to those that undertake this and fill the demand, but this isn’t an investment for me.
Perhaps unsurprisingly, my research led me to a couple real estate gurus selling courses promising “sober living housing passive income riches!!!” 
If that’s not an oxymoron then IDK what is… Hope you learned something.
Follow me The Koerner Office as I continue to explore my curiosities in public.
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