Residential Mental Health and Substance Abuse Facilities Revenue Benchmarks
The average residential mental health and substance abuse facilities business in the United States generates $3.9M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 4,508 residential mental health and substance abuse facilities businesses in the U.S., employing 217,454 workers with an average profit margin of 13.0%. The average employee in this industry earns $50K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Residential Mental Health and Substance Abuse Facilities Business Actually Do?
Inpatient/residential treatment centers for mental health and substance abuse. Ranges from insurance-covered clinical care to luxury private-pay rehab.
Who buys: Patients or families seeking residential treatment, mostly insurance or private pay.
Average Revenue
$3.9M
per year
Profit Margin
13.0%
industry average
Revenue / Employee
$82K
per year
Total Businesses
4,508
in the US
Est. Owner Income
$513K
small business avg
Labor Cost
50.0%
of revenue
Avg Employee Wage
$50K
per year (BLS)
Market Saturation
1.4
firms per 100K people
How Much Do Residential Mental Health and Substance Abuse Facilities Charge?
Residential treatment programs charge per day, with wide variance by length of stay and amenities.
| Service | Typical range |
|---|---|
Basic residential treatment | $300–800/day |
Mid-tier private program | $800–2,000/day |
Luxury / executive residential | $2,500–8,000/day |
Full 30-day program (typical) | $15,000–90,000+ |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete residential mental health and substance abuse facilities business plan
A 12-section data-backed business plan for a residential mental health and substance abuse facilities business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the residential mental health and substance abuse facilities industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Medical supplies & pharma | $13 | $511K | Disposables, medications, lab reagents, implants, and other direct patient supplies. |
Wages & benefits | $50 | $2.0M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $219K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $2 | $73K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $17 | $657K | Malpractice insurance, billing services, equipment leasing, regulatory compliance. |
Net profit | $13 | $513K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
9.55%
openings/year
Closure Rate
9.48%
closings/year
Net Job Growth
+2.79%
annual
Businesses Closed
601
in 2023
Firm Count Trend
Should You Start a Residential Mental Health and Substance Abuse Facilities Business?
Startup Cost
$75K – $300K
Break-Even
4 months
5-Year Survival Rate
70.0%
Related Industries
Frequently Asked Questions
- What does a residential mental health and substance abuse facilities business do?
- Inpatient/residential treatment centers for mental health and substance abuse. Ranges from insurance-covered clinical care to luxury private-pay rehab. Patients or families seeking residential treatment, mostly insurance or private pay.
- How much do residential mental health and substance abuse facilities charge?
- Residential treatment programs charge per day, with wide variance by length of stay and amenities. See the pricing table above for typical rates by service type.
- How much does the average residential mental health and substance abuse facilities make per year?
- The average residential mental health and substance abuse facilities business generates $3.9M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $513K per year at a 13.0% profit margin.
- How many residential mental health and substance abuse facilities businesses are there in the US?
- There are 4,508 residential mental health and substance abuse facilities businesses operating in the United States, employing a total of 217,454 workers.
- How much does it cost to start a residential mental health and substance abuse facilities business?
- Startup costs for a residential mental health and substance abuse facilities business typically range from $75K to $300K, with a 5-year survival rate of 70.0%.
- What is the average salary in the residential mental health and substance abuse facilities industry?
- The average employee in the residential mental health and substance abuse facilities industry earns $50K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The residential mental health and substance abuse facilities industry is actively growing — adding jobs at a net rate of 2.8% per year. New establishments are opening faster than existing ones close (9.5% entry vs 9.5% exit), indicating healthy demand.
Approximately 61% of residential mental health and substance abuse facilities businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 601 firms in this industry closed permanently.
Employment & Wages
The average employee in the residential mental health and substance abuse facilities industry earns $49,640/year. This is below the national average of ~$65K — typical for this sector. With 9,803 establishments employing 249,057 people, the typical business has about 25 employees.
Industry Trend (2000–2023)
The residential mental health and substance abuse facilities industry has grown 49% since 2000 (from 7,453 to 11,109 firms).
See full historical statistics →Compare Residential Mental Health and Substance Abuse Facilities revenue with other industries: