Halfway house, sober living or three-quarter house: what owners should know
Halfway house, sober living or three-quarter house: what owners should know
People use these names as if they mean the same thing. For an owner they do not. The name you use affects who sends you residents, who pays you and which rules apply.
This is general information, not legal advice. Definitions differ by state, so confirm yours locally.
Halfway house
In the federal system, what most people call a halfway house is a residential reentry center. The Bureau of Prisons contracts with providers for these services. So "start a halfway house" in this sense means bidding for and running a corrections contract. It is a very different business from renting rooms.
Outside corrections, people often use "halfway house" loosely for any shared home for people leaving treatment or custody. If that is what you plan, you are probably starting a sober living home or transitional housing, and those are the rules to read.
If you mean a federal reentry center
The Bureau of Prisons buys these services through contracts. So the steps are to read its current solicitations, form a business that can meet them, and bid. State corrections departments run their own contracts, so ask yours as well. Expect inspections, staffing rules and reporting.
Sober living home
A home where residents share a house, follow sobriety rules and pay their own way. NARR's four levels run from peer-run houses to clinical programs. See our guide on how to start a sober living home.
Three-quarter house
Usage varies. Some people mean a step down from a halfway house with less supervision, and others mean a shared house with strict rules that charges rent. It is an informal term, so do not assume it has a legal meaning where you are. Ask your city and state what they would call the house you describe.
How to tell which one you are planning
| Question | Points toward |
|---|---|
| Does a corrections agency send residents and pay under contract? | Halfway house or reentry center |
| Do residents pay their own rent and follow sobriety rules? | Sober living or recovery residence |
| Is the stay time-limited, with a grant paying part of the cost? | Transitional housing |
| Do you provide treatment on site? | A clinical program, likely licensed |
What every version has in common
- Zoning and fire rules. Ask the city before you buy or lease. Tell them how many unrelated adults will live there.
- No paying for referrals. 18 U.S.C. § 220 makes it a federal crime to knowingly and willfully pay or take kickbacks for referrals to recovery homes when the services are covered by a health care benefit program, with penalties up to $200,000 and 10 years in prison per occurrence. The law has exceptions, so ask a lawyer.
- Fair housing. The Justice Department and HUD joint statement covers group homes and local land use. Have a lawyer read your rules against it.
- A written agreement per resident. Whether residents count as tenants depends on state law.
- Records. Every charge and every payment, per person, by date.
Where Rentology fits
Rentology runs the housing side of a house rented room by room: one property per house at the normal plan price ($149 a month covers up to 3 properties), $6 a month for each room with its own lease, monthly rent for each resident, bank transfer payments, and cash and checks recorded by hand. Someone other than the resident can pay through one private page with no login or app.
It does not handle care documentation. If your residents pay monthly rent, you can try it free for 14 days with up to 5 houses.