Assisted Living Business Valuation Multiples (2026): EBITDAR Ranges and How to Sell to Senior-Housing Buyers
Quick Answer
Christoph Totter · Managing Partner, CT Acquisitions
M&A advisory across 500+ active capital partners · Senior housing M&A: assisted living, memory care, IL/SNF · Updated June 6, 2026
Assisted Living Business Valuation Multiples in 2026: A US assisted living business in 2026 typically sells for roughly 8x to 13x EBITDAR (EBITDA before rent, the senior housing valuation metric). The senior housing M&A market is recovering post-COVID with occupancy back above 85%+ in most markets, RevPAR growth, and continued PE + REIT activity. By profile: single-property assisted living ($1-3M EBITDAR, 50-100 units) goes 8x-10x EBITDAR; small portfolio (2-5 properties, $3-10M EBITDAR) goes 9x-11x; mid-size portfolio (5-20 properties, $10-30M EBITDAR) goes 10x-12x; premium scale portfolio (20+ properties, multi-state, $30M+ EBITDAR, memory care + AL + IL continuum) reaches 11x-13x+. Active buyers include Welltower (NYSE: WELL, the largest US senior housing REIT, ~1,800+ properties), Ventas (NYSE: VTR, second-largest senior housing REIT), Brookdale Senior Living (NYSE: BKD, the largest US senior housing operator, ~600+ communities), Sonida Senior Living (NYSE: SNDA, mid-size public operator), Atria Senior Living (private; Ventas holds a 34% stake, per Ventas), Sunrise Senior Living (private; Welltower sold its 34% stake to Revera in 2023, per Revera), Five Star Senior Living (NASDAQ: FVE, now private post AlerisLife), Discovery Senior Living (private, multi-state), Holiday Retirement (Atria subsidiary), plus PE sponsors (Blackstone Real Estate, KKR Real Estate, Carlyle Real Estate, BlackRock Real Assets, Harrison Street Real Estate, Bain Capital Real Estate). The biggest multiple drivers are RevPAR (revenue per available unit, the senior housing benchmark), occupancy rate (85%+ recovery, 90%+ premium), care-level mix (memory care premium to AL premium to IL), real-estate quality, operator brand strength, and named management agreements. No fee to you on buy-side introductions; sell-side mandates are paid on success at closing.
If you own a US assisted living business in 2026, the senior housing M&A market is recovering post-COVID with occupancy back above 85%+ in most markets. Welltower (NYSE: WELL) and Ventas (NYSE: VTR) are the dominant senior housing REITs. Brookdale Senior Living (NYSE: BKD, ~600+ communities) is the largest operator. Atria Senior Living and Sunrise Senior Living are the best-known private operators. PE sponsors continue selective senior housing acquisitions.
What the asset is worth depends on three things: (1) RevPAR (revenue per available unit, the senior housing benchmark) and occupancy rate, (2) care-level mix (memory care premium to AL premium to independent living), and (3) real-estate quality plus operator brand strength. This guide covers real multiples by profile, the named buyers transacting, and the operator-level diligence buyers will run.
What this guide covers
- Assisted living multiples 2026: 8x-10x EBITDAR for single-property, 9x-11x for small portfolio, 10x-12x for mid-size portfolio, 11x-13x+ for premium scale with memory care + AL + IL continuum.
- Senior housing REITs: Welltower (NYSE: WELL, ~1,800+ properties), Ventas (NYSE: VTR). Public operators: Brookdale Senior Living (NYSE: BKD, ~600+ communities, largest US operator), Sonida Senior Living (NYSE: SNDA).
- Private operators: Atria Senior Living (Ventas partner), Sunrise Senior Living (private), Discovery Senior Living, Holiday Retirement (Atria subsidiary).
- PE sponsor activity: Blackstone Real Estate, KKR Real Estate, Carlyle Real Estate, BlackRock Real Assets, Harrison Street Real Estate, Bain Capital Real Estate.
- Multiple drivers: RevPAR (revenue per available unit) and occupancy rate (85%+ recovery benchmark), care-level mix (memory care premium), real-estate quality, operator brand strength, named management agreements.
- Things that compress: low occupancy, single-property exposure, weak operator brand, real-estate quality issues, weak care-level mix, single-state operations.
- No fee to you on buy-side introductions; sell-side mandates are paid on success at closing.
Named M&A transactions (2021-2025)
CT Acquisitions · 2026 Buyer-Market Signal
What Senior Housing Buyers Underwrite in 2026
Across our buy-side conversations with senior housing acquirers (REITs and operators) in 2026:
- EBITDAR (not EBITDA) is the senior housing metric. Rent is structurally separated because REITs own the real estate; EBITDA-only valuations mislead buyers and sellers.
- Private-pay vs Medicaid mix drives multiple. Heavy private-pay mix commands premium; Medicaid-heavy operators face reimbursement uncertainty discount.
- Memory care unit mix is rewarded. Operators with documented memory care expertise and unit mix above 20% trade above pure AL peers.
Multiple at a Glance · 2026
Assisted Living Sale Multiples · 2026
By scale and care mix.
Source: CT Acquisitions analysis of senior housing M&A. Welltower (NYSE: WELL), Ventas (NYSE: VTR), Brookdale, Atria, Sunrise + PE-backed platforms. EBITDAR (EBITDA + rent) is the senior housing metric.
Related Cluster GuideAdjacent senior care / medical practice vertical: see how how to sell a medical practice works in 2026.
| Target | Buyer | Year | What it tells us |
|---|---|---|---|
| Welltower portfolio acquisitions | Welltower (NYSE: WELL) | 2022-2025 | Largest US senior housing REIT continues selective portfolio additions. |
| Ventas continued M&A | Ventas (NYSE: VTR) | 2022-2025 | Second-largest senior housing REIT continues regional acquisitions. |
| Brookdale community sales and re-positioning | Brookdale Senior Living (NYSE: BKD) | 2022-2025 | Largest US senior housing operator continues portfolio optimization. |
| PE-backed senior housing platform recapitalizations | Multiple PE Real Estate platforms | 2022-2025 | PE sponsors continue selective senior housing recapitalizations and acquisitions. |
| Post-COVID occupancy recovery | Industry-wide | 2022-2025 | Senior housing occupancy recovered from COVID lows (~78%) to 85%+ in most markets by 2025. |
Assisted living business valuation multiples by method
Assisted living business valuation multiples depend on what is being measured. Communities with $1M or more of EBITDAR trade at roughly 8x to 13x EBITDAR per the CT Acquisitions deal tiers above, smaller owner-run homes are priced on SDE or EBITDA, and the real estate can be valued on its own with a cap rate on net operating income.
Sellers often see three or four different multiples quoted for the same kind of facility and assume someone is wrong. Usually each source is measuring a different thing. Before you compare any number to your own, check which earnings figure it uses and whether the real estate is included.
| Method | Typical use | Published range and source |
|---|---|---|
| Multiple of SDE | Small owner-operated homes and residential care facilities | Middle half valued at 2.42x to 5.87x SDE, per BizBuySell valuation benchmarks for assisted living and nursing homes |
| Multiple of adjusted EBITDA | Operating businesses sold to private buyers | 4.0x to 6.0x under $1M EBITDA, 6.5x to 8.5x at $1M to $3M, 8.0x to 10.0x+ above $3M, per the SovDoc assisted living valuation guide (2025 data) |
| Multiple of EBITDAR | Communities and portfolios sold to REITs, operators, and PE | 8x to 10x for a single property up to 11x to 13x+ for scale portfolios, per the CT Acquisitions deal tiers on this page |
| Cap rate on NOI | The building, valued by appraisers, lenders, and property buyers | Value equals trailing net operating income divided by the cap rate (standard income approach) |
Three things explain most of the gap between these ranges. First, scale: a home earning under $1M is priced on the owner’s total benefit, while a multi-property operator is priced on institutional metrics, per the SovDoc and BizBuySell figures above. Second, rent: EBITDAR adds rent back, so it lets a buyer compare an operator that leases its building with one that owns it. Third, real estate: a sale that includes an owned building is a property deal and a business deal at once, and many buyers price the two parts separately.
The practical step is to build your numbers every way that applies before going to market: SDE or EBITDA for the operating business, EBITDAR if you lease, and NOI for the property if you own it. A buyer who quotes you a multiple will be using one of these, and you need to know which one before you can judge the offer.
The named buyer landscape
Senior housing REITs (the dominant capital)
- Welltower (NYSE: WELL, ~1,800+ properties), the largest US senior housing REIT.
- Ventas (NYSE: VTR), second-largest senior housing REIT.
- Healthcare Realty Trust (NYSE: HR), National Health Investors (NYSE: NHI), LTC Properties (NYSE: LTC), smaller senior housing/care REITs.
Public operators
- Brookdale Senior Living (NYSE: BKD, ~600+ communities), the largest US senior housing operator.
- Sonida Senior Living (NYSE: SNDA), mid-size public operator.
Private operators (REIT partner network)
- Atria Senior Living (Ventas operating partner).
- Sunrise Senior Living (private operator).
- Holiday Retirement (Atria subsidiary).
- Discovery Senior Living (private, multi-state).
- Senior Lifestyle, LCS (Life Care Services), Eclipse Senior Living, multiple regional operators.
PE sponsors active in this space
- Blackstone Real Estate, KKR Real Estate, Carlyle Real Estate, BlackRock Real Assets, Harrison Street Real Estate, Bain Capital Real Estate, plus multiple real-estate-focused PE funds.
What each buyer will pay for vs. what they reject
- Will pay premium for: high occupancy (90%+ premium, 85%+ acceptable), strong RevPAR growth, care-level mix premium (memory care commands highest care revenue per resident), real-estate quality (Class A property, good submarket demographics), named operator brand or operating-partner agreement with Atria/Sunrise/Discovery, multi-state portfolio scale, modern property infrastructure.
- Will compress or reject: low occupancy (below 80%), weak RevPAR growth, single-property exposure, weak operator brand, real-estate quality issues (older buildings, weak submarket), independent-living-only (lower acuity = lower revenue), single-state, weak management agreement structure.
The operator-level KPI playbook buyers will diligence
RevPAR and occupancy
- RevPAR (revenue per available unit, per month): The senior housing standard. Track monthly trend.
- Occupancy rate: 90%+ is premium; 85%+ is acceptable; below 80% compresses materially.
- Move-in / move-out velocity.
- Average length of stay.
Care-level mix
- Independent living (IL) percentage.
- Assisted living (AL) percentage.
- Memory care percentage, premium revenue per resident.
- Skilled nursing if applicable.
- Continuing care retirement community (CCRC) if applicable.
Real estate and operations
- Property ownership vs. lease.
- Building age and capex history.
- Operating expense ratio (OPEX / revenue).
- Labor expense as % of revenue: 50-55% typical; 60%+ is high.
- Management fee structure (if REIT-owned + operator).
Regulatory and licensing
- State assisted living licensure.
- State nurse practice act rules on RN delegation.
- State survey history and findings.
- Workers’-comp EMR.
Dangers and traps
1. Low occupancy
Below 80% occupancy compresses materially; below 70% may be deal-killing.
2. Weak RevPAR growth
Document monthly RevPAR trend; flat or declining RevPAR signals operating issues.
3. Single-property exposure
Multi-property portfolios command premium multiples.
4. Weak operator brand
Named operator brand or operating-partner agreement (Atria, Sunrise, Discovery) is a multiple-builder.
5. Real-estate quality issues
Older buildings without capex history compress.
6. State survey deficiencies
Deficiency findings on state licensing surveys can be deal-killers.
7. Labor cost pressure
Senior housing has been hit hard by post-COVID labor cost increases; document labor expense trend.
8. Memory care liability exposure
Memory care has elevated liability profile; document protocols and incidents.
Our POV in 2026
Senior housing M&A is recovering post-COVID with occupancy back above 85%+ and RevPAR growth. Welltower (NYSE: WELL) and Ventas (NYSE: VTR) are the dominant REITs. Brookdale Senior Living (NYSE: BKD) is the largest operator. Atria and Sunrise are the best-known private operators. PE sponsors continue selective acquisitions.
The right time to prepare is 12-18 months before going to market, improve occupancy, document RevPAR growth, build memory care capability, lock in operator brand or management agreement.
Preparing your business for sale: 12-18 months out
- Get multi-year audited financials.
- Document RevPAR and occupancy trend.
- Build memory care capability if not present.
- Confirm state assisted living licensure cleanliness.
- Resolve state survey findings.
- Document real-estate ownership and capex history.
- Establish operator brand or management agreement.
- Build operations management bench.
- Run a competitive process. Welltower (NYSE: WELL), Ventas (NYSE: VTR), Brookdale Senior Living (NYSE: BKD), Sonida Senior Living (NYSE: SNDA), Atria Senior Living (Ventas partner), Sunrise Senior Living (private), Discovery Senior Living, plus PE sponsors (Blackstone Real Estate, KKR Real Estate, Carlyle Real Estate, BlackRock Real Assets, Harrison Street Real Estate, Bain Capital Real Estate).
About the Author
The vertical-specific prep sequence is covered on our assisted living exit-planning walkthrough.
Christoph Totter is the founder of CT Acquisitions, an M&A advisory firm working both sides of the table, headquartered in Sheridan, Wyoming. We work directly with 500+ buyers, search funders, family offices, lower middle-market PE, and strategic consolidators, including direct mandates with the largest home services consolidators that other intermediaries can’t access. No fee to you on buy-side introductions; sell-side mandates are paid on success at closing. Connect on LinkedIn · Get in touch
Free, No Email Required
Get a personalized valuation in 90 seconds
Answer six quick questions and we’ll give you a sector-adjusted EBITDA multiple range plus the specific factors driving your number up or down.
Open the Valuation Tool →The five pillars of how CT Acquisitions works
Sell side for owners, buy side for acquirers, plus exit planning.
No fee on buy-side introductions. Sell side paid on success.
Search funders, family offices, lower-middle-market PE, strategics.
Introductions to the right buyers only. No public listing.
You see exactly how we are paid before any work starts.
No Pitch · No Pressure
Ready to start a confidential conversation?
Tell us about your business. We’ll tell you what it’s likely worth, whether we have qualified buyers in our network, and what the next steps could look like. Terms are agreed in writing before any work starts.
Start a Confidential Conversation →Frequently asked questions
What is the typical multiple for an assisted living business in 2026?
Single-property assisted living ($1-3M EBITDAR, 50-100 units) typically sells at 8x-10x EBITDAR. Small portfolios (2-5 properties, $3-10M EBITDAR) go 9x-11x. Mid-size portfolios (5-20 properties, $10-30M EBITDAR) go 10x-12x. Premium scale portfolios (20+ properties, multi-state, $30M+ EBITDAR, memory care + AL + IL continuum) reach 11x-13x+. Note: senior housing uses EBITDAR (EBITDA before rent) as the valuation metric.
Who are the active buyers of assisted living businesses right now?
Senior housing REITs: Welltower (NYSE: WELL, ~1,800+ properties, largest US senior housing REIT), Ventas (NYSE: VTR). Public operators: Brookdale Senior Living (NYSE: BKD, ~600+ communities, largest US operator), Sonida Senior Living (NYSE: SNDA). Private operators: Atria Senior Living (Ventas partner), Sunrise Senior Living (private), Discovery Senior Living, Holiday Retirement (Atria subsidiary), Senior Lifestyle, LCS. PE sponsors: Blackstone Real Estate, KKR Real Estate, Carlyle Real Estate, BlackRock Real Assets, Harrison Street Real Estate, Bain Capital Real Estate.
What hurts an assisted living business’s valuation most?
Low occupancy (below 80% compresses, below 70% may be deal-killing), weak RevPAR growth, single-property exposure, weak operator brand, real-estate quality issues (older buildings, weak submarket), state licensing survey deficiencies, single-state operations, post-COVID labor cost pressure without offsetting RevPAR growth, and memory care liability exposure.
Why does senior housing use EBITDAR instead of EBITDA?
EBITDAR (EBITDA before rent) is the senior housing valuation standard because many properties separate the real estate (owned by a REIT) from operations (run by an operator under a lease or management agreement). EBITDAR allows comparison across owned-property and leased-property structures, and reflects the cash flow available to the operator before rent obligations. Senior housing multiples are typically quoted in EBITDAR terms.
What is the post-COVID recovery story?
Senior housing occupancy dropped to ~78% during COVID (2020-2021), recovered to ~85% by 2024, and continues to grow. RevPAR growth resumed in 2022-2023. Labor cost pressure remains elevated. The recovery has been uneven by market and operator, with premium portfolios (Welltower, Ventas, Brookdale top properties) leading.
Do I have to pay a broker fee?
No. CT Strategic Partners runs a M&A advisory model. No fee to you on buy-side introductions; sell-side mandates are paid on success at closing.
How long does it take to sell an assisted living business?
Typical process 6-10 months. Real-estate diligence extends timing. Add 12-18 months of preparation.
When should I start preparing if I plan to sell in 2027 or 2028?
12-18 months before going to market. Highest-leverage work: improve occupancy, document RevPAR growth, build memory care capability, establish operator brand or management agreement, resolve state survey findings.
How do you value an assisted living facility?
Most valuations use the income approach. The operating business is priced as a multiple of SDE, EBITDA, or EBITDAR depending on size, and an owned building is priced by dividing net operating income by a cap rate. Appraisers also check recent comparable sales. Occupancy, private-pay mix, care levels, survey history, and building condition move the result up or down.
What EBITDA multiple do small assisted living facilities sell for?
Smaller facilities sell for lower multiples than portfolios. The SovDoc assisted living valuation guide puts facilities under $1M of adjusted EBITDA at 4.0x to 6.0x, and BizBuySell valuation benchmarks show the middle half of assisted living and nursing home businesses valued at 2.42x to 5.87x SDE. High occupancy and clean surveys push a small facility toward the top.
Related research
- How to sell a hospice business
- How to sell a home care business
- How to sell a home health agency
- How to sell an infusion therapy business
- How to sell a DME business
- How to sell a physical therapy practice
- Healthcare business valuation
- Which industries is PE buying most in 2026
- Private equity value creation
- Business broker alternative
