Assisted Living

Older adults sometimes need help with personal care. This help may come from family, other caregivers, or home care programs. 

Assisted living is for older adults who need more care than they can get at home but do not need nursing home care all day and night. Assisted living can give an older adult help while still protecting their privacy and independence.

Each state gives licenses to assisted living homes. To get a license, a home must offer certain services and meet quality rules. These services and rules are different in each state.

Assisted living homes offer different services. Most offer options for:

• Staff on duty 24 hours a day to meet residents’ needs (Note: This might not include skilled nurses on site.)
• Social services
• Housekeeping and laundry
• Fun activities and meals
• Help with daily activities, like bathing and dressing.
• Health-related services (for example, help taking medicines)
• Transportation

Older adults thinking about assisted living should check that the services fit their needs now. They should also think about needs they may have later. Homes in the same state can offer very different services.

The cost of assisted living varies a lot. The resident is charged monthly, similar to renting an apartment. Cost depends on room and board rates, the added services, and how much care a person needs. In general, assisted living costs less than a nursing home. In 2023, the typical (median) cost for assisted living in the U.S. was $4,500 per month.

Most older adults must pay for assisted living on their own. Long-term care insurance may help, if they have it. Some states use Medicaid to help pay for people with very little income and savings.

Group Homes

Group homes are houses or apartments where two or more people live together and get some basic help. The people are not related. People share a living room, dining room, and kitchen. They usually have their own bedrooms. This type of home offers chances to be social, along with privacy and independence.

Group homes serve different kinds of residents. For example, many homes focus on helping people with long-term mental illness or dementia.

Most group homes are businesses run to make a profit. Some states require these homes to have a license.

Adult Foster Care

Foster care homes usually provide a room, meals, and some help with daily tasks. The family that runs the home, or other paid caregivers, usually live there too.

One benefit of adult foster care is that older adults live in a place that feels more like home. Rules for foster care are different in each state. Some states require these homes to have a license.

Some states use their Medicaid programs to help pay for adult foster care.

Sheltered Housing

The U.S. government has a housing voucher program called Section 8 Housing. It is for older adults and people with disabilities who qualify because they have limited money. The program helps pay for housing so these older adults can live in safe and clean homes.

Continuing-Care Retirement Communities

Some older adults choose to live in a continuing-care retirement community (CCRC). These communities usually offer different levels of care. Choices might include houses, apartments, assisted living, memory care, and a skilled nursing facility (a nursing home with 24-hour medical care).

Often, older adults first move into the CCRC’s independent living areas. If they later develop disabilities, they may move into assisted living or skilled nursing.

CCRCs often offer health care through one of three payment plans:

1. The all-inclusive model. This covers all health care needs, including long-term care.
2. The fee-for-service model, where people pay based on the level of care they get.
3. The modified coverage model, which pays for long-term care only up to a set amount.

Most CCRCs require:

• A large fee to move in, which may or may not be paid back
  • A monthly fee that pays for rent and support services. This fee changes based on the level of care the older adult gets. It can be very expensive.

Most older adults pay for these communities with their own money. Sometimes insurance, such as Medicare or Medicaid, will pay for care in the skilled nursing part.

Memory Care Assisted Living

These assisted living homes care for older adults with dementia, such as Alzheimer’s disease. They work much like nursing homes. But they focus on the special needs of people with dementia or cognitive impairment (problems with thinking and remembering). Some assisted living homes have a memory care unit inside them. This is used instead of a separate memory care facility. 

Last Reviewed and Updated: October 2026 
By: AGS/HiAF Public Education Committee, HealthinAging.org Content Reviewers