What Is a Group Home? A Complete Guide for the Care and Residential Services Industry

A group home is a licensed residential facility where a small number of people live together in a shared, home-like setting while receiving supervision, personal care, and support services from trained staff. These homes are designed for individuals who cannot live completely independently but do not require the level of care provided in a hospital or large institutional facility.

Group homes are an essential part of the care and community support system, offering a safe, structured, and personalized environment for people with a wide range of needs — from intellectual and developmental disabilities to mental health support, senior care, foster youth services, and recovery housing.

1. Purpose and Core Philosophy

The purpose of a group home is to provide supportive, person-centered care in a setting that feels like home rather than an institution. They aim to help residents:

• Live as independently as possible
• Develop or maintain daily living skills
• Participate in their community
• Build social connections and relationships
• Receive the care and oversight they need to remain safe and healthy

Unlike larger facilities, group homes typically have 4 to 16 residents, creating a close-knit atmosphere that promotes comfort, dignity, and trust.

2. Who Lives in a Group Home?

Group homes serve many different populations depending on the license type and state regulations. Common resident groups include:

Adults with Intellectual or Developmental Disabilities (IDD/DD)

• Need help with daily living skills, community integration, and personal care.
• Often supported through state Home and Community-Based Services (HCBS) waivers.
• Staff are trained as Direct Support Professionals (DSPs) or Qualified Intellectual Disabilities Professionals (QIDPs).

Children and Youth in Care

• Includes foster youth, youth in residential treatment programs, or those with behavioral needs. For those interested in this specific area, our Foster Care Agency Policies can provide essential guidance.
• Receive supervision, counseling, and life skills education.
• Licensed as Group Homes, General Residential Operations (GROs), or Residential Treatment Centers (RTCs).

Individuals with Mental or Behavioral Health Needs

• Adults transitioning from inpatient treatment or living with chronic mental illness.
• May require Qualified Mental Health Professionals (QMHPs) and structured therapeutic programs.

Seniors or Adults with Physical Disabilities

• Often licensed as Adult Family Homes, Personal Care Homes, or Assisted Living Homes.
• Provide assistance with personal care, mobility, and sometimes medication management.

Recovery and Transitional Housing Residents

• People overcoming substance use disorders, exiting incarceration, or experiencing homelessness.
• Focus on stability, sober living, and independent living preparation.

3. Services Offered in a Group Home

The range of services depends on the home’s license type, but most provide:

• Safe and stable housing in a regulated environment
• 24-hour supervision or scheduled check-ins
• Personal care assistance (bathing, dressing, grooming, toileting, mobility)
• Medication management or reminders
• Nutritious meals and dietary support
• Transportation for appointments, activities, or work
• Life skills training (budgeting, cooking, cleaning, communication)
• Behavioral or therapeutic support (if part of the program)
• Recreational and community activities to build social engagement

4. How Group Homes Are Regulated

In the United States, group homes are licensed and regulated by state agencies. The specific requirements depend on:

• The population served (youth, adults, seniors, IDD, mental health, recovery)
• Whether care is medical or non-medical
• The size of the home and number of residents

Regulations typically cover:

• Staff qualifications and training
• Resident rights and protections
• Safety and building requirements
• Emergency preparedness
• Policies and procedures for admissions, medication, incidents, and grievances
• Regular inspections to ensure compliance

Licensing agencies can include state Departments of Health, Human Services, Developmental Disabilities, Behavioral Health, or Aging.

Starting a group home means navigating a complex web of state-specific regulations. Don't get bogged down in paperwork. CarePolicy offers comprehensive, state-compliant Group Home Policies and Procedures manuals that are fully editable and ready for licensure. Ensure your success from day one.

5. How Group Homes Differ from Other Care Settings

Setting	Purpose	Size	Medical Care Level	Environment
Group Home	Supportive living with personal care	4–16 residents	Non-medical or limited nursing	Home-like
Nursing Home	24-hour skilled nursing care	Large	High	Institutional
Assisted Living	Help with ADLs, limited health oversight	Medium–large	Low–moderate	Apartment-style
Transitional/Recovery Housing	Short-term stability & skill-building	Varies	Minimal	Shared housing

6. Benefits of Group Homes

Group homes provide:

• Individualized care tailored to each resident’s needs
• A community-based environment that encourages participation in everyday life
• Greater independence while still offering safety and support
• Smaller resident numbers, allowing for more personal attention
• Long-term housing stability for vulnerable individuals

7. Certifications and Approvals Needed to Operate a Group Home

To legally operate, most group homes require:

• State facility license specific to the population served. Learn more through our licensing consultation service.
• Fire safety and building occupancy approval
• Medicaid or HCBS waiver provider certification (if serving publicly funded residents)
• Staff certifications like CPR/First Aid, medication administration, crisis intervention, and abuse prevention
• Background checks and registry clearances for all employees

8. Growing Demand for Group Homes

The demand for group homes continues to grow due to:

• An aging population preferring smaller, home-like care settings
• Deinstitutionalization policies moving people into community-based housing
• Behavioral health reforms increasing the need for supportive housing
• Expanded funding for HCBS and supportive living services

9. Key Takeaway

A group home is more than just a residence—it’s a support system in a home-like environment designed to meet the personal, social, and sometimes medical needs of its residents. For new business owners, understanding who you’ll serve, the services you’ll provide, and the licensing and certification process is essential for success.

Ready to launch your group home? The foundation of a successful and compliant operation is a solid set of policies and procedures. Visit CarePolicy.us today to find state-specific, fully customizable templates that will get you licensed and operational faster.