NAICS 623990 Quarterly Industry Report
Other Residential Care Facilities
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 623990Sector: Health Care and Social Assistance (62)Updated: Q1 2026
About This Report
This industry profile for Other Residential Care Facilities (NAICS 623990) draws on data from the U.S. Census Bureau[6], Bureau of Labor Statistics[8], HHS Administration for Children and Families[9], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, residential services analysts, and social service investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the other residential care facilities industry.
NAICS Sector
62
Health Care and Social Assistance
Industry Definition & Overview
Other Residential Care Facilities (NAICS 623990) encompasses establishments primarily engaged in providing residential care services not classified under intellectual disability, mental health, substance abuse, continuing care, or assisted living facility categories per the U.S. Census Bureau[5]. This catch-all classification includes group homes for hearing or visually impaired individuals, halfway houses for individuals re-entering the community after incarceration, boot camps for youth (operated outside correctional systems), homes for unwed mothers, and other supervised residential programs for populations needing structured living support.
Roughly 3,390 businesses operate 6,033 locations employing approximately 121,000 workers with annual payroll of $4.6 billion per Census Bureau[6] economic survey data. The industry spans diverse operator types, from faith-based organizations running transitional housing to state-contracted providers operating juvenile residential facilities. Facility sizes range from small 8-resident group homes to larger campus programs housing 100 or more residents. Funding sources include state contracts, supports care reimbursement, criminal justice system referrals, charitable donations, and private payment.
Per the SBA Table of Size Standards[7], the size standard is $16 million in average annual receipts. Licensing requirements vary by facility type and target population, with state health departments, juvenile justice agencies, child welfare systems, and corrections departments each maintaining oversight authority depending on the population served. Background check and criminal record clearance requirements apply across facility types. Staff training requirements, physical plant standards, and resident-to-staff ratios are set at the state level with wide variation reflecting the diverse facility types within this classification. Medicaid, Social Services Block Grant, and Juvenile Justice and Delinquency Prevention Act funding support various program types within this classification.
What's Included in This Industry
- Group homes for individuals with sensory disabilities
- Halfway house operations for community re-entry programs
- Youth residential boot camps (non-correctional)
- Transitional living programs for homeless populations
- Maternity homes and residential programs for unwed mothers
- Residential programs for victims of domestic violence
- Group homes for individuals with physical disabilities
- Supervised independent living skill development programs
- Residential respite care for family caregivers
- Emergency shelter and short-term residential placement
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Health Care and Social Assistance | 62 |
| Subsector | Nursing and Residential Care Facilities | 623 |
| Industry Group | Other Residential Care Facilities | 6239 |
| NAICS Industry | Other Residential Care Facilities | 62399 |
| National Industry | Other Residential Care Facilities | 623990 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 623210 | Residential Intellectual and Developmental Disability Facilities | Residential Intellectual and Developmental Disability Facilities serve a specific disability population in group home settings that parallel the supervised residential model used for other populations in this classification, with both facility types providing structured daily living support and community integration services |
| 623220 | Residential Mental Health and Substance Abuse Facilities | Residential Mental Health and Substance Abuse Facilities provide clinical treatment programming that overlaps with halfway house and transitional living services in this classification, with some residents transitioning between substance abuse treatment and community re-entry halfway houses during the recovery continuum |
| 624110 | Child and Youth Services | Child and Youth Services deliver supports care placement, residential treatment, and youth development programs that overlap with youth boot camps and group homes in this classification, with child welfare agencies contracting both facility types for at-risk youth residential placement |
| 624190 | Other Individual and Family Services | Other Individual and Family Services provide case management, homeless outreach, and domestic violence support that connect clients to residential care facilities in this classification, with social service organizations coordinating referrals to transitional housing and emergency shelter programs |
| 624210 | Community Food Services | Community Food Services operate meal programs that complement residential care facilities serving homeless and low-income populations, with food banks and soup kitchens supporting transitional living program residents during their path toward stable independent housing |
| 623312 | Assisted Living Facilities for the Elderly | Assisted Living Facilities for the Elderly serve a specific age-defined population in settings that parallel the supervised residential care model used for diverse populations in this classification, with both facility types providing room, board, supervision, and personal care assistance |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 12.8% | 744 |
| 2 | Minnesota | 8.2% | 477 |
| 3 | Florida | 6.1% | 358 |
| 4 | Ohio | 4.4% | 257 |
| 5 | New York | 4.3% | 253 |
| 6 | Texas | 4.2% | 242 |
| 7 | Pennsylvania | 4.0% | 234 |
| 8 | Michigan | 3.8% | 223 |
| 9 | Wisconsin | 3.6% | 208 |
| 10 | New Jersey | 3.4% | 196 |
% Of Establishments
0%
13%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
320
Total SBA Loans
$180.8M
Total Loan Volume
$565K
Average Loan Size
14 yrs
Average Loan Term
10.70%
Average Interest Rate
5,688
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Other Residential Care Facilities (NAICS 623990) has a size standard of $16 million in average annual receipts for federal contracting purposes. SBA lending programs[10] support facility acquisition, program development, and capital improvement for qualifying residential care operators. Eligible businesses can access SBA 7(a) loans[11] for working capital, equipment, and acquisition financing, while 504 loans[12] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Pinnacle Bank | 16 | $37.2M | $2.3M |
| 2 | OakStar Bank | 8 | $18.8M | $2.4M |
| 3 | Celtic Bank Corporation | 8 | $16.5M | $2.1M |
| 4 | The Huntington National Bank | 40 | $15.7M | $393K |
| 5 | Readycap Lending, LLC | 16 | $14.2M | $885K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for halfway houses and group homes?
NAICS 623990 covers other residential care facilities including group homes, halfway houses, youth boot camps, and transitional living programs not classified elsewhere per the U.S. Census Bureau[5].
What is the SBA size standard for other residential care?
The SBA size standard[7] is $16 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
How large is the other residential care industry?
Roughly 3,390 businesses operate 6,033 locations employing approximately 121,000 workers with annual payroll of $4.6 billion per Census Bureau[6] economic survey data.
What types of facilities fall under this classification?
This classification covers group homes for sensory or physical disabilities, halfway houses for community re-entry, youth boot camps outside correctional systems, homes for unwed mothers, and transitional living programs per the U.S. Census Bureau[5].
How are other residential care facilities funded?
Funding sources include state contracts, supports care reimbursement, criminal justice system referrals, Medicaid, Social Services Block Grant, Juvenile Justice and Delinquency Prevention Act allocations, charitable donations, and private payment per HHS[9] program data.
What licensing governs these diverse facility types?
State health departments, juvenile justice agencies, child welfare systems, and corrections departments maintain oversight depending on the population served per state regulatory frameworks, with background checks, staff training, and physical plant standards varying across facility types and jurisdictions.
How large are typical facilities in this classification?
Facility sizes range from small 8-resident group homes to larger campus programs housing 100 or more residents per state licensing categories, with the wide range reflecting diverse populations and program models across this catch-all residential care classification.
What staff training is required?
Staff training requirements are set at the state level with wide variation reflecting diverse facility types per Bureau of Labor Statistics[8] occupational data, with criminal background clearance applying universally and specialized training in areas like trauma-informed care, crisis intervention, and youth development required for specific population types.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]SBA Table of Size Standards sba.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]HHS Administration for Children and Families acf.hhs.gov
- [10]SBA lending programs sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
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