Buy an Assisted Living Facility in Austin, TX

What the Austin Assisted Living Market Actually Looks Like

There are roughly 12 active Texas-statewide listings for assisted living facilities at any given time, with asking prices ranging from $158,900 to $25M. That range is wide enough to be nearly meaningless on its own.

The $25M end represents large campus-style facilities that fall outside SBA eligibility entirely. The SBA 7(a) program caps loans at $5M, so anything above roughly $5.5M in acquisition price is outside standard SBA financing territory. For most buyers working with SBA lending, the realistic universe is the smaller end of that range, clustered around the $595,000 median.

Austin is a strong market for care-based businesses. The metro population is approaching 1 million, median household income sits at $91,461, and the region has one of the fastest-growing 65-plus populations in Texas. Demand for licensed care beds is not a question here.

Deal Economics at the Median

The listed average multiple is 1.6x. The median asking price of $595,000 divided by the median cash flow of $293,582 implies approximately 2.0x. That gap matters.

The 1.6x average is pulled down by distressed or below-market listings in the dataset. The median price-to-cash-flow ratio of roughly 2x is the more reliable signal for a deal at the center of the market. Either way, both figures are well below the 3x to 5x range where SBA acquisitions typically price.

A care-based business trading at 2x is either a genuine opportunity or a sign of operational problems. The buyer's job is to figure out which.

How the Deal Math Works at $595,000

Here is a representative deal structure at the median asking price, using SBA 7(a) standard terms.

At roughly $83,000 in annual debt service on a $535,500 SBA loan at approximately 10.5% over 10 years, the implied DSCR is around 3.5x. That clears the 2x target comfortably and stays well above the 1.5x floor.

The seller note here is full standby at 0% interest, meaning no payments during the SBA loan term. Regalis Capital targets this structure on qualifying deals.

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

One note on the cash flow figure: the $293,582 likely reflects operator SDE as reported by the listing broker. SDE is broker-friendly and often includes add-backs that will not survive lender scrutiny. Apply a 15% to 30% discount to stress-test the actual coverage before you get attached to a deal.

What to Look for Before You Submit an LOI

Assisted living is not like buying an HVAC company. The asset has a license. The license has conditions. And the license transfers on a timeline that the Texas Health and Human Services Commission controls, not you.

Before submitting a letter of intent on any Austin-area facility, get clear answers on these:

Census and occupancy. What is the current resident count versus licensed bed capacity? A facility running at 60% occupancy has a revenue ceiling problem, not just a profitability problem.

Staffing compliance. Texas requires minimum staffing ratios for licensed facilities. Any history of deficiency citations for staffing is a red flag that will affect both the operating economics and the license transfer review.

State survey history. Request the last three years of HHSC inspection reports. One deficiency is noise. Repeat deficiencies in the same category are a pattern.

Real estate structure. Is the real estate included in the asking price or is this a leased facility? A facility where you are buying the business but not the building adds a landlord dependency that lenders will scrutinize carefully.

Resident agreements and payer mix. Private-pay residents generate more predictable revenue than Medicaid-dependent residents. Know the payer mix before you model cash flow.

Frequently Asked Questions

How much does it cost to buy an assisted living facility in Austin, TX?

Median asking price based on current Texas statewide data is $595,000, though the range runs from under $200,000 for smaller homes to well above $5M for larger facilities. Listings above $5M are outside SBA loan eligibility. Most SBA-viable deals in this market will fall in the $300,000 to $2M range.

What cash flow can I expect from an assisted living facility in Austin?

Median cash flow based on current listing data is $293,582. That figure likely reflects broker-reported SDE, which may include owner add-backs that will not survive lender review. Apply a 15% to 30% discount when modeling debt service coverage to stress-test the numbers before committing.

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

Yes. Assisted living facilities are eligible for SBA 7(a) financing. The program requires a 10% equity injection, structured as 5% buyer cash plus a 5% seller note on full standby. With a $595,000 purchase price, that means roughly $29,750 out of pocket. The HHSC license transfer process adds time to the close, which lenders will account for in the approval timeline.

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

A standard business acquisition closes in 60 to 90 days. An assisted living facility acquisition in Texas typically runs longer because HHSC must approve the change of ownership before the deal closes. Budget 120 to 180 days total for a fully licensed facility and structure your purchase agreement accordingly.

What Texas-specific regulations affect assisted living facility acquisitions?

The Texas Health and Human Services Commission licenses and inspects all assisted living facilities in the state. A change of ownership requires HHSC pre-approval, and the new owner must meet all licensure requirements independently. Any open deficiencies, pending investigations, or enforcement actions against the current license can delay or block the transfer.

Ready to Run the Numbers on an Austin Assisted Living Acquisition?

Buying a care-based business requires a different due diligence approach than a typical owner-operated business. The licensing, staffing compliance, and state regulatory exposure add layers that most deal teams are not set up to handle.

Based on Regalis Capital's analysis of care-based acquisitions, the buyers who close successfully are the ones who start the licensing and regulatory review before they fall in love with the cash flow projections.

If you are looking at assisted living facilities in Austin or anywhere in Texas, talk to Regalis Capital's deal team about what the qualification process looks like and how to structure an offer that survives lender review.