Buy an Assisted Living Facility in Arlington, TX

The Arlington Assisted Living Market

Arlington sits in the Tarrant County portion of the DFW metroplex, between Dallas and Fort Worth, with a population approaching 400,000. The city skews younger overall, with a median income around $73,500, but the surrounding metro is one of the fastest-aging markets in Texas.

Texas ranks among the top five states nationally for assisted living facility count, and the Dallas-Fort Worth corridor absorbs a disproportionate share of demand. Arlington specifically benefits from proximity to major medical infrastructure in Fort Worth and the broader DFW healthcare network.

As of Q1 2026, there are 12 active listings for assisted living facilities in Texas at the deal size range relevant to SBA financing. Supply at this price point is thin relative to buyer demand, which matters for deal terms.

What Does a 1.6x Multiple Actually Mean?

The average asking multiple here is 1.6x cash flow. That is unusually low. Most SBA acquisitions target the 3x to 5x range.

There are two explanations for sub-2x multiples in this category. First, smaller residential-style facilities (often 4 to 16 beds) carry operational and licensing risk that buyers discount. Second, some sellers are pricing to exit quickly rather than maximize valuation.

A 1.6x multiple on a business doing $293,582 in cash flow is a $469,000 asking price. At the median, you are buying nearly $2 of cash flow for every $1 of purchase price. That is rare.

How the Deal Math Works

Here is a representative deal based on the median data, with SBA financing applied.

At a 3.8x DSCR, this deal has exceptional debt coverage. Even with staffing disruptions or a 20% revenue dip, you are still above the 2x target. That buffer matters in a care-based business where expenses can spike without warning.

The equity injection is $59,500 total, structured as approximately $29,750 cash out of pocket and $29,750 as a seller note on full standby at 0% interest. Regalis Capital achieves full standby seller notes on over 90% of deals, meaning no payments on that note during the SBA loan term.

These are rough estimates based on market data. Actual terms depend on individual qualification and lender.

Note: This data reflects the median deal. The price range in this market runs from $158,900 to $25M, so deal economics vary considerably by facility size, license type, and payer mix.

What to Look For When Buying an Assisted Living Facility in Arlington

Licensing is the first filter. Texas residential care facilities are licensed through the Health and Human Services Commission (HHSC). Pull the inspection history before you spend time on financials. A facility with repeated citations is a liability, not an opportunity.

Census is the revenue proof. Assisted living cash flows are determined almost entirely by how many beds are filled and at what rate. Ask for 24 months of census records and reconcile them against bank deposits. If the seller cannot produce both, walk.

Payer mix determines stability. Private-pay residents generate higher margins and are easier to underwrite. Medicaid-heavy facilities have thinner margins, more regulatory exposure, and harder reimbursement variability. Know what you are buying.

Staff retention is an operational moat. High turnover in care staff is expensive and is a quality-of-care red flag that HHSC notices. Ask for turnover rates and whether key caregivers are under employment agreements.

Real estate matters more here than in most SBA deals. Some listings include the property; many are leases. If leased, verify the remaining lease term and renewal options. A facility with 18 months left on a lease is a problem at closing.

Frequently Asked Questions

How much does it cost to buy an assisted living facility in Arlington, Texas?

As of Q1 2026, median asking prices for Texas assisted living facilities relevant to SBA financing are approximately $595,000. The range is wide, from under $200,000 for small residential care homes to over $1M for licensed facilities with higher bed counts and real estate included.

Can I use SBA financing to buy an assisted living facility in Texas?

Yes. Assisted living facilities are eligible for SBA 7(a) financing provided the buyer meets lender qualifications and the facility has clean licensing history. The standard structure is 80% SBA loan, 15% seller note on full standby, and 5% cash equity injection from the buyer.

What is the minimum cash required to buy an assisted living facility in Arlington?

At the median asking price of $595,000, the minimum buyer cash contribution is approximately $29,750, structured as 5% of the purchase price. The remaining 5% equity injection comes from a seller note on full standby at 0% interest, acting as equity for SBA purposes.

Do I need healthcare experience to buy an assisted living facility?

Texas HHSC requires that facilities have a licensed administrator on staff, but the owner is not required to hold that license personally. Buyers without direct healthcare operations experience typically need to identify and retain a licensed administrator as part of the acquisition plan. SBA lenders will scrutinize management qualifications closely.

How long does it take to close on an assisted living facility acquisition?

SBA 7(a) acquisitions typically close in 60 to 90 days from signed letter of intent. Assisted living deals can run longer due to HHSC license transfer requirements in Texas. Budget 90 to 120 days from LOI to close for proper diligence on licensing, census records, and staff retention.

Considering an Assisted Living Acquisition in Arlington?

Assisted living facilities in the Arlington and DFW market offer deal economics that are difficult to find in most other sectors right now. Sub-2x multiples on businesses with strong cash flow do not stay available long.

If you are evaluating an assisted living facility in Arlington or the broader Tarrant County area, Regalis Capital's deal team can run the numbers, review the HHSC history, and structure the financing. We review 120 to 150 deals per week and know what separates a clean acquisition from a problem.

Start with a free deal assessment