Entrance Fee Independant Living

In general, entrance fee developments serve a different market than traditional rental properties, but there is a small overlap as some higher income couples (and perhaps more sophisticated investors) may choose to invest the proceeds of the sale of their home and pay rent. For the vast majority of couples, however, the entrance fee alternative has the “look and feel” of a move to a condominium and some psychological sense of homeownership. In contrast, one-person homeowners, living alone, face a different set of stresses and often choose a seniors housing rental alternative as readily as they might an entrance fee alternative, assuming they can afford either.

The entrance fee “buys-down” the monthly cost for services. Ideally, an older couple sells their home at a price that allows them to make a “lateral” move to the continuing care setting with no out-of-pocket costs (assuming the entrance fee has been set at a level consistent with local prices for existing homes). This move then allows the couple (or individual) to spend less for the same monthly services offered in a typical independent living rental development.

Sample Primary Market Area
As of Jan 1, 2018

Current IncomeCongregate/Independent RentalOverlapPotential Independent Entrance Fee (Mostly Two-Person Hhlds)Total Excluding Overlap
@ 65% of Income@ 65% of Income
UnitsMonthly RentUnitsMonthly FeeUnits

Project categories: Sample Reports

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