Buy an Assisted Living Facility in Fort Worth, TX

The Fort Worth Assisted Living Market

Fort Worth is the 13th-largest city in the United States and one of the fastest-growing metros in Texas. With a population pushing 941,000 and a median household income of $76,602, the city has the demographic profile that drives steady demand for residential care: an aging population, working adult children who need professional care solutions, and a local economy strong enough to support private-pay facilities.

Tarrant County's senior population has grown faster than the Texas average over the past decade. That translates directly into occupancy rates and waitlists for well-run facilities.

There are currently 12 assisted living facilities listed for sale in Texas, with asking prices ranging from $158,900 to $25,000,000. The median sits at $595,000. That spread tells you this is a fragmented market with a wide range of facility sizes, license types, and operational quality. You are not buying a commodity. Every deal is different.

Deal Economics: What the Numbers Look Like

At a $595,000 asking price with $293,582 in annual cash flow, the implied multiple is approximately 2.0x. That is well inside the SBA sweet spot of 3x to 5x EBITDA.

A note on the cash flow figure: assisted living operators often report earnings as SDE (Seller Discretionary Earnings), which includes owner compensation and one-time add-backs. SDE requires a 15% to 50% discount to approximate real post-acquisition cash flow, depending on whether the buyer is owner-operator or absentee. Run the numbers after replacing the owner's salary with a realistic manager cost.

Here is a rough deal structure at the median asking price:

• Asking price: $595,000
• Buyer equity injection (10%): $59,500 total, structured as $29,750 cash (5%) + $29,750 seller note on full standby (5%)
• SBA 7(a) loan (80%): $476,000 at approximately 10.5% over 10 years
• Seller note (10%): $59,500 at 0% on full standby (no payments during SBA term)
• Estimated annual debt service: approximately $78,000 to $82,000
• DSCR at $293,582 cash flow: approximately 3.6x before owner salary adjustment

These are rough estimates based on current market data. Actual terms depend on individual qualification, lender, and deal structure. The DSCR will compress meaningfully once you factor in a manager's salary if you are not operating the facility yourself.

What to Look for Before You Buy

Assisted living facilities carry more due diligence weight than most SBA acquisitions. A few things that matter more here than in other deal types:

Licensing. Texas Health and Human Services licenses assisted living facilities by Type A (ambulatory residents) and Type B (non-ambulatory or memory care). The license transfers with the sale, but violations, complaints, and inspection history stay on record. Pull the HHSC inspection reports for the last three years before you sign anything.

Staff retention. In a small residential care facility, the staff IS the operation. High turnover is a red flag. Ask for payroll records and turnover data, not just tenure of the current team.

Payer mix. Private-pay revenue is worth more than Medicaid-based revenue. Medicaid reimbursement rates are set by the state and rarely cover full cost. A facility heavily dependent on Medicaid has compressed margins that may not show up cleanly in the seller's SDE calculation.

Occupancy history. Current occupancy matters less than trend. A facility that was 90% occupied a year ago and is now at 65% needs an explanation. A facility that dropped during COVID and recovered to 85% is a different story.

Local Considerations for Fort Worth

Fort Worth has a different regulatory and competitive dynamic than Dallas, even though they share a metro. Tarrant County has a higher concentration of smaller, family-owned residential care homes (Type A and Type B, 4 to 16 beds) compared to the larger institutional facilities clustered closer to Dallas medical corridors.

That means Fort Worth deals tend to be smaller in absolute dollars but more accessible for first-time buyers using SBA financing. A 12-bed Type A facility in a residential neighborhood in Fort Worth is a realistic first acquisition for a buyer with $30,000 to $60,000 in equity to inject.

The competitive dynamic favors well-capitalized buyers who can handle deferred maintenance and staff stabilization post-close. Sellers of smaller facilities are often exiting due to burnout, not because the business is failing.

Frequently Asked Questions

How much does it cost to buy an assisted living facility in Fort Worth?

Assisted living facilities in the Texas market have a median asking price of $595,000, with listings ranging from under $200,000 for small residential care homes to $25,000,000 for larger licensed facilities. Fort Worth specifically skews toward smaller residential care facilities in the $300,000 to $800,000 range, making SBA 7(a) financing the most common acquisition vehicle.

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

Yes. Assisted living facilities are eligible for SBA 7(a) financing as long as the business has documented cash flow sufficient to service the debt. The standard equity injection is 10% of the purchase price, structured as 5% buyer cash plus a 5% seller note on full standby. Texas HHSC licensing must be in good standing at time of application.

What cash flow should I expect from a Fort Worth assisted living facility?

The median cash flow for Texas assisted living listings is $293,582. That figure is typically reported as SDE and includes owner compensation. If you plan to hire a manager rather than operate the facility yourself, reduce the effective cash flow by $40,000 to $70,000 to account for that cost before calculating debt service coverage.

What is a reasonable multiple to pay for an assisted living facility?

Most small assisted living facilities trade between 1.5x and 3.0x annual cash flow. The current Texas median implies approximately 2.0x, which is below the typical SBA sweet spot of 3x to 5x EBITDA. Lower multiples in this category often reflect licensing risk, deferred maintenance, or owner-dependent operations that require post-close stabilization.

How long does it take to close an assisted living facility acquisition using SBA financing?

A typical SBA 7(a) acquisition closes in 60 to 90 days from signed letter of intent, assuming clean financials and an unencumbered license transfer. Assisted living deals can run longer due to HHSC license change-of-ownership procedures in Texas, which add 30 to 45 days in some cases. Build this timeline into your LOI and purchase agreement.

Buying an Assisted Living Facility in Fort Worth? Let's Run the Numbers.

Assisted living acquisitions in Fort Worth are among the more complex deals we see, but they also offer some of the strongest cash flow multiples in the SBA market. A $595,000 facility producing $293,000 in cash flow is a rare entry point in a business category with durable demand.

If you are evaluating facilities in Fort Worth or the broader Tarrant County area, Regalis Capital's deal team can help you assess licensing risk, model post-acquisition cash flow, and structure the SBA deal to protect your equity.

Start your deal assessment with Regalis Capital