BOSTON REIA • INVESTOR TOOLS
Sober Living Investment Calculator
Analyze a property, plan your operating budget, and see what occupancy you need to make the numbers work.
Massachusetts edition • All starting numbers are illustrative examples, not market rates, lender quotes, or approved bed counts. USD. Pre-tax estimates.
Five-year projection
Year 1 is stabilized operations. Startup delay is budgeted separately. No refinance, income taxes, depreciation benefits, or investor distributions modeled.
How the calculations work
Monthly bed rate = weekly rate × 52 ÷ 12. Available beds = approved total capacity − staff beds. Turnover occupancy ceiling = average stay ÷ (average stay + vacant days between residents). Effective occupancy is the lower of your demand occupancy assumption and that turnover ceiling; vacancy is not deducted twice.
Collected housing revenue = available beds × effective occupancy × monthly rate × collection rate. Variable resident costs follow occupied beds, even if a resident does not pay. Staffing burden applies to manager pay and employee wages. Turnover cost = occupied beds × 365 ÷ average stay × cost per turnover ÷ 12. Management fee applies to all collected revenue.
NOI = collected revenue − operating expenses, including property rent for a lease-operated home. NOI excludes debt service and capital reserve contributions. Distributable cash flow deducts both. Owner-operated cap rate includes the operating business; it is not directly comparable to a conventional property-only cap rate.
Startup cash = down payment (or lease deposit) + closing and loan fees + setup costs + contingency + initial working capital. Working capital = operating reserve months × (full monthly expenses + debt + capital reserve) + startup delay months × (fixed expenses + debt + capital reserve). This assumes no resident variable costs or revenue during startup. Refundable deposits and unused reserves are committed cash, not expenses, and are not recovered in the exit estimate.
Break-even occupancy solves monthly cash flow = zero including resident costs, turnover, management, capital reserves and debt. Required bed price uses current effective occupancy. The five-year exit uses purchase price grown by annual appreciation, less selling costs and remaining debt; it does not capitalize operating-business income. Lease operators have no property sale proceeds.
Massachusetts planning notes & sources
Confirm property-specific capacity, land use, building, fire and sanitary requirements before relying on any bed count. Enter actual certification, inspection, insurance, accessibility and safety-upgrade quotes; the calculator does not determine approval or compliance.
Massachusetts law provides for voluntary sober-home certification and restricts specified state referrals to certified residences. Certification does not guarantee referrals or occupancy. This model covers housing operations, not clinical treatment billing, insurance reimbursement, or paid referral arrangements.
Massachusetts sober housing law · MASH certification · MASH standards · MassHousing sprinkler program
Source review: October 23, 2026. Verify requirements and funding availability for your project. This is a planning estimate, not a valuation or legal, tax or lending determination.