Looking to Start a Tiny Home Community for Seniors
Real Estate Broker · Round Lake, IL · Member since 2015 · 3 posts · 3 votes
Looking to Start a Tiny Home Community for Seniors
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Cliff H.Pro Member
Rental Property Investor · Nashua, NH · Member since 2014 · 599 posts · 477 votes@Matthew Lawrence so mobile home parks, but without the single floor living seniors need? I realize there’s a thousand ways to slice a tiny home, but the multi-level bunk bed layouts I’ve seen are *** far from senior-friendly as I’ve seen in the housing market. TH’s have a function, but building affordable assisted living is not it.
18 Replies
That $10k/month cost shows the huge opportunity here. Start with county planning first - they'll tell you if assisted living is even allowed in that zoning before you go too deep. Have you called the counties you're eyeing yet?
- 7moDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesWhile I’ve never owned or managed assisted living, I’ve financed some and receive requests for financing all the time, providing us with full financials for the operations.
Quote from @Matthew Lawrence:
Good Morning,
I have been looking into buying land at the Ilinois/Wisconsin Border where I can Create an assisted living community where every resident gets their own tiny home. I know there are many obstacles like getting permits/zoning for this type of business on the property, special licenses/certifications in order to run a businesss like this, water/sewer/power, etc, And making to sure the homes comply to safety standards, insurance, etc.
My goal was to start one tiny home at a time but have the water/power/sewer for maybe like 20 tiny homes.
Does anybody have experience in this space for at least the senior living part of it?
The reason I am interested in doingthis is I bought a flip where the seller needed the proceeds to pay for her memory care, and it was like $10,000 a month for her care!!!!
I figured I could give people a more affordable option.
Please let me know your thoughts.
Matt
From analysis of hundreds of p and l statements, the most profitability is in the “independent” living segment; with much larger scaling needed to assisted living, memory care, etc. to be licensed let alone profitable.
This is a business more than a real estate investments. While 3N leasing is possible to operators, for anything other than Class A large facilities the operators will be small, financially challenged, and a step or two away from default. Assisted living can be lucrative while having purpose.
Disconnected tiny homes as an assisted living setup would seem to be a poor way to provide it. The residents would be isolated and bringing them together for meals or activities would involve moving around outside, which depending on location, season and weather, could be a nightmare. Additionally, you would have higher staffing costs and tending to scattered disconnected units would be very laborious.
I could see a standard tiny home community - for older adults as a solid model.
- 7moDenise SuppleeBusiness MemberRealtor · Willow Grove, PA · Member since 2017 · 993 posts · 647 votes
I love new ideas like this, and it’s funny, my husband has been talking about tiny homes a lot lately. Its smart to be thinking through zoning, licensing, utilities, and safety compliance, those will be the biggest hurdles. The phased approach sounds strategic from a capital standpoint.
I’d also be very interested in hearing from investors or operators who have experience in senior living. There may be opportunities for partnerships or creative funding structures, especially given how expensive traditional care has become. A $10,000 month price point clearly shows there’s a gap in the market.
Spark Rental Co-Investing Club582 Reviews- 7moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Denise Supplee:
I love new ideas like this, and it’s funny, my husband has been talking about tiny homes a lot lately. Its smart to be thinking through zoning, licensing, utilities, and safety compliance, those will be the biggest hurdles. The phased approach sounds strategic from a capital standpoint.
I’d also be very interested in hearing from investors or operators who have experience in senior living. There may be opportunities for partnerships or creative funding structures, especially given how expensive traditional care has become. A $10,000 month price point clearly shows there’s a gap in the market.
OK we have dreams you build it and they will come and then you have reality.. A few builders I know in the Portland market tried this with dismal success the market did not accept tiny homes limited parking ( thats portland specific on the parking) Behind the 90 home project I just built is a large senior center vertically integrated from assisted to living in your own unit to memory etc etc its a major facility and it works because its a NON profit Menonite owned facility costing well over 100 million I sold them 2 acres for 2.2 mil just the dirt. on that they have built attached single level patio homes that sell for 500k HOA is 1500 a month and when you sell you only get 40% back but they take care of everything down to the light bulbs etc. Its taken them a while to fill the units but people do buy them. As for tiny homes at least in the Portland market I would say they are a failure because of lack of demand. - 7moDenise SuppleeBusiness MemberRealtor · Willow Grove, PA · Member since 2017 · 993 posts · 647 votesHi Jay!! I understand what you’re saying, the market always has the final vote. I do think, though, that tiny homes in Portland may be more of a product market alignment issue than simply a concept failure.
Quote from @Jay Hinrichs:
Quote from @Denise Supplee:
I love new ideas like this, and it’s funny, my husband has been talking about tiny homes a lot lately. Its smart to be thinking through zoning, licensing, utilities, and safety compliance, those will be the biggest hurdles. The phased approach sounds strategic from a capital standpoint.
I’d also be very interested in hearing from investors or operators who have experience in senior living. There may be opportunities for partnerships or creative funding structures, especially given how expensive traditional care has become. A $10,000 month price point clearly shows there’s a gap in the market.
OK we have dreams you build it and they will come and then you have reality.. A few builders I know in the Portland market tried this with dismal success the market did not accept tiny homes limited parking ( thats portland specific on the parking) Behind the 90 home project I just built is a large senior center vertically integrated from assisted to living in your own unit to memory etc etc its a major facility and it works because its a NON profit Menonite owned facility costing well over 100 million I sold them 2 acres for 2.2 mil just the dirt. on that they have built attached single level patio homes that sell for 500k HOA is 1500 a month and when you sell you only get 40% back but they take care of everything down to the light bulbs etc. Its taken them a while to fill the units but people do buy them. As for tiny homes at least in the Portland market I would say they are a failure because of lack of demand.
The senior community you mentioned is a good example of how a clearly defined demographic and strong value proposition can make a project work. Even with higher price points and HOA structure, there's a specific need being met, which creates stability.
Spark Rental Co-Investing Club582 Reviews - 7moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Denise Supplee:
Hi Jay!! I understand what you’re saying, the market always has the final vote. I do think, though, that tiny homes in Portland may be more of a product market alignment issue than simply a concept failure.Quote from @Jay Hinrichs:
Quote from @Denise Supplee:
I love new ideas like this, and it’s funny, my husband has been talking about tiny homes a lot lately. Its smart to be thinking through zoning, licensing, utilities, and safety compliance, those will be the biggest hurdles. The phased approach sounds strategic from a capital standpoint.
I’d also be very interested in hearing from investors or operators who have experience in senior living. There may be opportunities for partnerships or creative funding structures, especially given how expensive traditional care has become. A $10,000 month price point clearly shows there’s a gap in the market.
OK we have dreams you build it and they will come and then you have reality.. A few builders I know in the Portland market tried this with dismal success the market did not accept tiny homes limited parking ( thats portland specific on the parking) Behind the 90 home project I just built is a large senior center vertically integrated from assisted to living in your own unit to memory etc etc its a major facility and it works because its a NON profit Menonite owned facility costing well over 100 million I sold them 2 acres for 2.2 mil just the dirt. on that they have built attached single level patio homes that sell for 500k HOA is 1500 a month and when you sell you only get 40% back but they take care of everything down to the light bulbs etc. Its taken them a while to fill the units but people do buy them. As for tiny homes at least in the Portland market I would say they are a failure because of lack of demand.
The senior community you mentioned is a good example of how a clearly defined demographic and strong value proposition can make a project work. Even with higher price points and HOA structure, there's a specific need being met, which creates stability.
I hear ya but with the senior units those are patio homes with 2 car garages nice back yard and covered space its just common wall they are built in duplex triplex config.
tiny homes like you see trailer manufactorers build pretty tough for full time living.. I dont think they are at all practical in the long run I would never personally go that way as a for profit enterprise.. mine as well just build a little mobile home park.. its the same thing Quote from @Jay Hinrichs:
Quote from @Denise Supplee:
Hi Jay!! I understand what you’re saying, the market always has the final vote. I do think, though, that tiny homes in Portland may be more of a product market alignment issue than simply a concept failure.Quote from @Jay Hinrichs:
Quote from @Denise Supplee:
I love new ideas like this, and it’s funny, my husband has been talking about tiny homes a lot lately. Its smart to be thinking through zoning, licensing, utilities, and safety compliance, those will be the biggest hurdles. The phased approach sounds strategic from a capital standpoint.
I’d also be very interested in hearing from investors or operators who have experience in senior living. There may be opportunities for partnerships or creative funding structures, especially given how expensive traditional care has become. A $10,000 month price point clearly shows there’s a gap in the market.
OK we have dreams you build it and they will come and then you have reality.. A few builders I know in the Portland market tried this with dismal success the market did not accept tiny homes limited parking ( thats portland specific on the parking) Behind the 90 home project I just built is a large senior center vertically integrated from assisted to living in your own unit to memory etc etc its a major facility and it works because its a NON profit Menonite owned facility costing well over 100 million I sold them 2 acres for 2.2 mil just the dirt. on that they have built attached single level patio homes that sell for 500k HOA is 1500 a month and when you sell you only get 40% back but they take care of everything down to the light bulbs etc. Its taken them a while to fill the units but people do buy them. As for tiny homes at least in the Portland market I would say they are a failure because of lack of demand.
The senior community you mentioned is a good example of how a clearly defined demographic and strong value proposition can make a project work. Even with higher price points and HOA structure, there's a specific need being met, which creates stability.
I hear ya but with the senior units those are patio homes with 2 car garages nice back yard and covered space its just common wall they are built in duplex triplex config.
tiny homes like you see trailer manufactorers build pretty tough for full time living.. I dont think they are at all practical in the long run I would never personally go that way as a for profit enterprise.. mine as well just build a little mobile home park.. its the same thingThere is one very very important piece of information Jay is hitting on. Tiny homes are a whole new animal, small does not always mean cheap and they rarely if ever have the scale as manufactured home construction and two the manufactured homes are HUD approved and that carries a whole list of benefits when it comes to building a community vs the tiny home route.
- 7moDenise SuppleeBusiness MemberRealtor · Willow Grove, PA · Member since 2017 · 993 posts · 647 votes
Hi Jay!! I understand what you’re saying, the market always has the final vote. I do think, though, that tiny homes in Portland may be more of a product market alignment issue than simply a concept failure.
The senior community you mentioned is a good example of how a clearly defined demographic and strong value proposition can make a project work. Even with higher price points and HOA structure, there's a specific need being met, which creates stability.
Spark Rental Co-Investing Club582 Reviews - 7moCliff H.Pro MemberRental Property Investor · Nashua, NH · Member since 2014 · 599 posts · 477 votes
@Matthew Lawrence so mobile home parks, but without the single floor living seniors need? I realize there’s a thousand ways to slice a tiny home, but the multi-level bunk bed layouts I’ve seen are *** far from senior-friendly as I’ve seen in the housing market. TH’s have a function, but building affordable assisted living is not it.
- MD/DC · Member since 2024 · 1k+ posts · 1k+ votes7mo
Affordable housing where neighbors can socialize is in great need but the bigger need and reason for the high costs is not the garden variety over 65 community.
Assisted living which often quickly progresses to skilled nursing or memory care is where the actual deficit lies and $10,000mo comes in. Continuing Care Retirement Communities (CCRC) are the sweet spot for those with means that cover it all hence the high buy-in and high monthly charge. Memory Care units are what we really need but are extremely expensive to build and are a staffing and servicing nightmare. Medicare doesn’t pay for long term care and Medicaid nursing homes are in short supply. There are no easy answers but elder care has the potential to wreak havoc on our economy and as it stands is often an inhumane process. Those without families are screwed when they start to become demented and those with families either put off obtaining the appropriate level of care or are in denial that their loved one lacks the capacity to live independently. A system overhaul is needed.- 7moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jules Aton:
Affordable housing where neighbors can socialize is in great need but the bigger need and reason for the high costs is not the garden variety over 65 community.
Assisted living which often quickly progresses to skilled nursing or memory care is where the actual deficit lies and $10,000mo comes in. Continuing Care Retirement Communities (CCRC) are the sweet spot for those with means that cover it all hence the high buy-in and high monthly charge. Memory Care units are what we really need but are extremely expensive to build and are a staffing and servicing nightmare. Medicare doesn’t pay for long term care and Medicaid nursing homes are in short supply. There are no easy answers but elder care has the potential to wreak havoc on our economy and as it stands is often an inhumane process. Those without families are screwed when they start to become demented and those with families either put off obtaining the appropriate level of care or are in denial that their loved one lacks the capacity to live independently. A system overhaul is needed.
maybe take a page out of the Asian family structure. - MD/DC · Member since 2024 · 1k+ posts · 1k+ votes7mo
Quote from @Jay Hinrichs:
Quote from @Jules Aton:
Affordable housing where neighbors can socialize is in great need but the bigger need and reason for the high costs is not the garden variety over 65 community.
Assisted living which often quickly progresses to skilled nursing or memory care is where the actual deficit lies and $10,000mo comes in. Continuing Care Retirement Communities (CCRC) are the sweet spot for those with means that cover it all hence the high buy-in and high monthly charge. Memory Care units are what we really need but are extremely expensive to build and are a staffing and servicing nightmare. Medicare doesn’t pay for long term care and Medicaid nursing homes are in short supply. There are no easy answers but elder care has the potential to wreak havoc on our economy and as it stands is often an inhumane process. Those without families are screwed when they start to become demented and those with families either put off obtaining the appropriate level of care or are in denial that their loved one lacks the capacity to live independently. A system overhaul is needed.
maybe take a page out of the Asian family structure.Asian family structure is a clear winner in the elder care department but it seems regardless of culture if living here in the US all bets are off when Grandpa starts sundowning and becoming aggressive. At that point apparently it becomes the ED's responsibility.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes7mo
one thing to understand with any type of tiny home is getting financing for it. It is extremely challenging to getting financing for these types of projects, so whether it was for 21 or 71 year olds - make sure its viable that you can finance it. even if you have the cash to build it, you need an exit strategy and having a property that cannot get financing limits your exit significantly.
7e investments53 Reviews Just some food for thought.
Have you thought about just taking over an old one story motel where everything is in one structure, (or building something like that) because (it seems like) the upkeep on the individual structures and the building costs for the individual structures (might be) more than one structure.
Just my 2 cents.
Matt — this is a great concept and the demand is real. $10K/month for memory care is the norm, and families are desperate for affordable alternatives.
We actually build Ohana Units, ADUs, and DADUs in Hawai'i, Washington, and Nevada — so the tiny home / accessory dwelling model is something we work with every day. Here's what I'd share from our experience:
**Start with zoning before you buy the land.** The IL/WI border has different rules county by county. Some jurisdictions allow ADU clusters or planned unit developments (PUDs), others don't. Call the county planning department before you put money down — ask specifically about "congregate care" or "assisted living facility" zoning. Some areas will let you do it under agricultural or mixed-use zoning with a conditional use permit.
**Infrastructure first is the right move.** Running water, sewer, and power for 20 units upfront is smart — that's exactly how we approach it. The per-unit cost drops significantly when you trench once. Look into shared septic systems if municipal sewer isn't available — Wisconsin has specific rules on community septic.
**Licensing is the real hurdle.** Assisted living in both IL and WI requires state licensing (CBRF in Wisconsin, Assisted Living Establishment in Illinois). Memory care adds another layer — you'll need staff with dementia-specific training, secured perimeters, and specific safety standards per unit. Start the licensing research now because it can take 6–12 months.
**The financial structure matters.** We stress-test projects like this through iCAP Underwriter™ — modeling the build-out phases, occupancy ramp-up, and cash flow under different scenarios. A phased approach (one unit at a time, infrastructure for 20) is smart, but you need to know your break-even occupancy number before you break ground.
**Your "why" is your marketing.** You saw a family paying $10K/month and said there has to be a better way. That story will resonate with every family in that situation. Lead with it.
Happy to share more about how we structure ADU/tiny home builds and the financial modeling side. This is a project worth doing right.
- Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 432 votes6mo
I've never heard of anyone using tiny homes for this purpose. It is an intriguing thought for sure because it's another way of giving aging seniors autonomy in their living rather than be in apartments or shared units.
I would recommend starting with the state to figure out what your licensing needs to be so you know. In Wisco, we have 3 different levels. One is for up to 4 residents, the other is a CBRF (Community-Based Residential Facility), which is 5+ residents and requires 24/7 staffing. Then there's the RCAC (Residential Care Apartment Complex), which is maybe more your business model.
Then you can find a community to play ball. A community might be more willing to work with you if they see you are serious and have done the digging on licensing and are actively considering that portion.
Memory care is a different ball game than just "assisted living". I know from handling my mother and what placing her was like. Your tiny homes would need to be a gated community, and tiny homes would need "bandit alarms" and staffing. Memory Care patients can't be mixed with independent living or low-level assistance seniors. The more I think about tiny homes likely won't be accepted as a licensed memory care facility. Too many liabilities and unknowns.
Your best bet is to run this as a low-level assistance senior, and an independent living community. Low level usually means help with managing weekly medications, weekly cleaning, and laundry, etc. Those who can bathe and dress themselves.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes6mo
Here are a couple links to Tiny house projects here, for the homeless.
With regard to your thoughts on "Senior" specific or various levels of assisted living, one factor that would, in my mind, largely eliminate a Tiny Home as a good solution...mobility. Walkers, wheelchairs, canes and crutches require more maneuvering space to be safely used. And trust me, I've seen standard housing that has been beat to death with wheelchairs and mobility scooters. Also, many seniors have Assistance Animals, which also take up additional space.
Having said that, I raised this question elsewhere in this subforum but received no comments:
Have you considered utilizing "Tiny" features for multi-functional uses in typical "efficiency" or "studio" sized apartments to dramatically improve the usability and functionality of these smaller spaces...150 - 450 SF? Or even house hacks, where you add these features to each separately rented "bedroom" so the bed an fold up and a table or desk can drop down for a completely dual use space. There are a wide variety of mechanical "solutions" for problems not usually considered in these tired old units.
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