AFH Valuation Calculator
Estimate a possible Adult Family Home business value range from revenue, expenses, or net operating income. This is a preliminary planning estimate, not a professional appraisal.
These calculators provide estimates for planning purposes only. Actual costs, reimbursement rates, taxes, staffing requirements, licensing requirements, and profitability can vary by location and individual circumstances. This tool is not financial, legal, tax, licensing, or medical advice. Results are based on entered assumptions.
How it works
- Estimated annual NOI is the amount you enter, or annual gross revenue minus annual operating expenses if NOI is left at 0.
- Operating margin is NOI divided by annual gross revenue.
- Estimated business value is a range: NOI × low multiple through NOI × high multiple.
- Value per bed uses the midpoint of that range divided by licensed beds.
- If you include real estate, estimated total value adds property value to the business value range.
- Estimated equity is property value minus mortgage balance, plus estimated business value where that combination applies.
Example using the default assumptions
If annual revenue is $400,000 and operating expenses are $280,000, estimated NOI is $120,000. At planning multiples of 2.5x to 4.0x, estimated business value is $300,000 to $480,000. That range is an illustration, not a sale price.
Important assumptions
- Multiples are planning inputs, not a market survey or broker opinion.
- NOI here is a simple operating profit figure, not a standardized appraisal NOI.
- Payer mix, licensing, real estate condition, staffing, and local demand are not modeled automatically.
- This tool does not provide a professional appraisal, CMA, or offering memorandum.
Frequently asked questions
What is an AFH valuation?
An Adult Family Home valuation is an estimate of what the operating business, and sometimes the real estate, might be worth. Buyers and owners often look at earnings, occupancy, beds, and property.
How is an AFH business valued?
Common planning methods apply a multiple to net operating income or cash flow. Actual sale prices also reflect records quality, payer mix, census, licensing history, and the local market.
Does property value affect AFH valuation?
It can. Some transactions are business-only. Others include the house. This calculator can show a business range, a combined range, and a simple equity sketch.
What is value per bed?
Value per bed divides an estimated business value by licensed capacity. It is a comparison shortcut, not a rule that every bed is worth the same amount.
Is this an appraisal?
No. It is a preliminary planning worksheet. A professional appraisal uses different standards, inspections, and market evidence.
Why a range instead of one number?
A single precise value would overstate certainty. Multiples, occupancy, and records quality all move the result, so this tool shows a range.
Need another AFH estimate?
Explore occupancy, staffing, startup costs, Medicaid rates, and other Adult Family Home planning tools. Every calculator is free and works without an account.
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