Residential Group Homes (IDD)
State-licensed community residences housing adults with intellectual disabilities.
Market snapshot
These figures describe Intellectual & Developmental Disabilities (IDD) (4.2.5), the segment that Residential Group Homes (IDD) sits within — not Residential Group Homes (IDD) on its own.
- Market size
- ~$38B
- Growth
- ~6.2%CAGR (2017–22, nominal)
- Companies
- ~35,800
U.S. Census Bureau 2022 CBP/Economic Census, NAICS 623210 (Residential IDD Facilities); largely Medicaid-funded.
Business model & economics
Revenue model
Medicaid per-diem and waiver-based reimbursement
Key economics
- Recurring revenue
- High
- EBITDA margin
- 10–18%
- Capex intensity
- Moderate
long-term support services
rate- and labor-constrained
Characteristics
- Predominantly Medicaid-funded long-term support.
- Direct-care workforce shortages are a key constraint.
- Shift to community-based care supports demand.
Geographic concentration
IDD services concentrate in states with the most developed community-care systems — Minnesota, West Virginia, Massachusetts, and Maine — where Medicaid waiver programs are deepest.
U.S. Census Bureau — 2022 County Business Patterns (establishments by state), NAICS 623210. Concentration shown by location quotient.
M&A deal context
Who’s acquiring
- Multi-state IDD platforms
- PE-backed services consolidators
- Home- and community-based operators
What’s driving deals
- Consolidation into multi-state platforms.
- Medicaid-rate and workforce dynamics.
- Shift toward community-based care.
Find Residential Group Homes (IDD) acquisition targets
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