NAICS 721310 Quarterly Industry Report
Rooming and Boarding Houses
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 721310Sector: Accommodation and Food Services (72)Updated: Q1 2026
About This Report
This industry profile for Rooming and Boarding Houses, Dormitories, and Workers' Camps (NAICS 721310) draws on data from the U.S. Census Bureau[6], Bureau of Labor Statistics[9], ADA compliance standards[8], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, real estate analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the rooming and boarding houses industry.
NAICS Sector
72
Accommodation and Food Services
Industry Definition & Overview
Rooming and Boarding Houses, Dormitories, and Workers' Camps (NAICS 721310) encompasses establishments primarily engaged in operating rooming and boarding houses and similar facilities such as fraternity houses, sorority houses, off-campus dormitories, residential clubs, and workers' camps per the U.S. Census Bureau[5]. These establishments provide temporary or longer-term accommodation that may serve as a principal residence, with services potentially including housekeeping, meals, and laundry.
The Census Bureau[6] counts roughly 1,285 active businesses employing 11,267 workers. Average annual revenue per establishment sits near $181,849, with the typical operation employing about 5 workers. Roughly two-thirds of commercial rooming and boarding houses are owned by sole proprietors or partnerships. Student housing, worker housing in agricultural and construction regions, and urban rooming houses represent the primary market segments.
Per the SBA Table of Size Standards[7], the size standard is $14 million in average annual receipts. Regulatory requirements include ADA accessibility standards[8] for public accommodation facilities, Fair Housing Act compliance for residential operations, and state and local housing codes covering fire safety, building occupancy limits, and health and sanitation standards. Purpose-built student housing has attracted growing institutional investment interest, with cross-border investment in U.S. student housing reaching 40 percent of total sales volume in recent periods.
What's Included in This Industry
- Furnished room rental with shared or private bathroom facilities
- Meal service and communal dining hall operations where offered
- Housekeeping and common area maintenance services
- Laundry facilities for residents and staff
- Student dormitory and off-campus housing management
- Workers' camp accommodation and barracks management
- Fraternity and sorority house residential operations
- Residential club membership and community programming
- Utility management including heating, cooling, and water service
- Building security, access control, and resident safety systems
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Accommodation and Food Services | 72 |
| Subsector | Accommodation | 721 |
| Industry Group | Rooming and Boarding Houses, Dormitories, and Workers' Camps | 7213 |
| NAICS Industry | Rooming and Boarding Houses, Dormitories, and Workers' Camps | 72131 |
| National Industry | Rooming and Boarding Houses, Dormitories, and Workers' Camps | 721310 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 721110 | Hotels (except Casino Hotels) and Motels | Hotels and Motels provide short-term lodging at higher nightly rates, whereas rooming houses offer extended-stay accommodation at weekly or monthly rates serving different customer needs |
| 721199 | All Other Traveler Accommodation | All Other Traveler Accommodation includes guest houses and hostels that share the communal or shared-facility lodging model used by many rooming and boarding house operations |
| 721214 | Recreational and Vacation Camps (except Campgrounds) | Recreational and Vacation Camps share seasonal worker housing management requirements with workers' camps, particularly in agricultural and resort communities during peak seasons |
| 531110 | Lessors of Residential Buildings and Dwellings | Lessors of Residential Buildings manage comparable rental housing assets under standard lease structures, sharing property maintenance and tenant management operational requirements |
| 721191 | Bed-and-Breakfast Inns | Bed-and-Breakfast Inns operate at similar residential scale with included meal service, though B&Bs target short-stay travelers rather than the extended-stay residents served by boarding houses |
| 722310 | Food Service Contractors | Food Service Contractors provide institutional meal service at dormitories and workers' camps under contract arrangements, handling kitchen operations for facilities that include board with room |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 12.1% | 198 |
| 2 | Texas | 6.9% | 112 |
| 3 | New York | 6.1% | 99 |
| 4 | Indiana | 5.5% | 90 |
| 5 | Michigan | 4.3% | 71 |
| 6 | Washington | 3.9% | 63 |
| 7 | Illinois | 3.5% | 57 |
| 8 | Ohio | 3.4% | 56 |
| 9 | Florida | 3.4% | 56 |
| 10 | Kansas | 3.2% | 52 |
% Of Establishments
0%
12%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
16
Total SBA Loans
$4.8M
Total Loan Volume
$300K
Average Loan Size
13 yrs
Average Loan Term
11.38%
Average Interest Rate
112
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], Rooming and Boarding Houses, Dormitories, and Workers' Camps (NAICS 721310) has a size standard of $14 million in average annual receipts for federal contracting purposes. SBA lending programs[10] support property acquisition, renovation, and operational expansion for qualifying operators serving student, worker, and community housing markets. 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 | Banco Popular de Puerto Rico | 8 | $4.0M | $500K |
| 2 | Northeast Bank | 8 | $800K | $100K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 721310?
NAICS 721310 covers establishments operating rooming and boarding houses, fraternity and sorority houses, off-campus dormitories, residential clubs, and workers' camps per the U.S. Census Bureau[5]. These facilities provide temporary or longer-term accommodation that may serve as a principal residence. Services may include housekeeping, meals, and laundry. Hotels, motels, and campgrounds are classified under separate NAICS codes.
How large is the rooming and boarding house industry?
The Census Bureau[6] counts roughly 1,285 active businesses employing 11,267 workers. Average annual revenue per establishment sits near $181,849, with the typical operation employing about 5 workers. Two-thirds of operations are owned by sole proprietors or partnerships. Student housing and worker accommodation represent the largest market segments by revenue.
What ADA and housing compliance requirements apply?
Facilities providing lodging must comply with ADA Title III[13] accessibility standards including 32-inch minimum clear passage widths, accessible guestrooms, visual fire alarms, and auxiliary aids for persons with disabilities. Fair Housing Act requirements apply to residential operations. State and local housing codes cover fire safety, building occupancy limits, and health and sanitation standards, with requirements varying by jurisdiction.
What is the SBA size standard for this industry?
Per the SBA Table of Size Standards[7], the size standard is $14 million in average annual receipts calculated over the preceding five fiscal years. Most rooming houses and small dormitory operations fall well below this threshold, qualifying for SBA-backed financing programs including 7(a) loans for property acquisition and renovation projects.
What is the investment opportunity in the student housing segment?
Purpose-built student housing has attracted growing institutional investment interest, with cross-border capital reaching 40 percent of total student housing sales volume in recent periods per industry transaction data. University partnerships with real estate investment trusts (REITs) represent a growing development model. Student housing commands different occupancy and pricing patterns than worker housing or traditional rooming houses, with academic-year lease cycles driving predictable demand.
What owner earnings can rooming house operators expect?
Average revenue per establishment runs near $181,849 with the typical operation employing about 5 workers per Census Bureau[6] data. Profitability depends heavily on occupancy rates, average weekly or monthly rate, and operational efficiency. Properties in college towns or near major employment centers tend to achieve higher and more stable occupancy than those in secondary markets. Board service (meals included) generates additional revenue but also increases operating costs.
How does the workers' camp segment differ from residential rooming houses?
Workers' camps serve temporary labor forces in agriculture, construction, oil and gas, and seasonal tourism industries. Housing is typically provided by or through employers under contractual arrangements per industry practice. Demand cycles follow seasonal employment patterns rather than academic calendars or residential market conditions. Regulatory requirements may include OSHA workplace safety standards in addition to standard housing codes.
What due diligence should buyers perform for boarding house acquisitions?
Buyers should evaluate occupancy history and tenant stability, property condition and deferred maintenance needs, local housing code compliance, and insurance coverage adequacy per SBA business acquisition guidance[14]. Zoning classification matters because some jurisdictions restrict boarding house density or require special use permits. Tenant base composition (students versus workers versus community residents) affects revenue stability and operational complexity.
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]ADA accessibility standards ada.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA lending programs sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
- [13]ADA Title III ada.gov
- [14]SBA business acquisition guidance sba.gov
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