Senior Housing Cap Rates: Independent Living and Assisted Living
Senior housing cap rates range from about 6% for Class A independent living to over 8% for Class C assisted living. Survey figures, what drives them, and value at each.
By the CapRateCalculator.co team
Senior housing cap rates run from about 6% for the best independent living communities to over 8% for older assisted living. BBG’s spring 2026 survey of primary markets put independent living at 5.97% for Class A and 7.52% for Class C, and assisted living at 6.78% for Class A and 8.32% for Class C. CBRE’s first-half 2026 survey put Class A assisted living in core markets at 6.5%, with both segments compressing about 20 basis points.
Senior housing cap rates by segment
| Segment | Class A | Class C | Source |
|---|---|---|---|
| Independent living, primary markets | 5.97% | 7.52% | BBG, spring 2026 |
| Assisted living, primary markets | 6.78% | 8.32% | BBG, spring 2026 |
| Assisted living, core markets | 6.5% | CBRE, H1 2026 |
Value at senior housing cap rates
| Cap rate | Value of $3,000,000 NOI |
|---|---|
| 5.97% (Class A independent living) | $50,251,000 |
| 6.78% (Class A assisted living) | $44,248,000 |
| 8.32% (Class C assisted living) | $36,058,000 |
Why senior housing cap rates vary by care level
Independent living is mostly housing with meals, activities and transportation. Assisted living adds help with daily tasks like bathing and medication, which takes far more staff. Memory care adds more again. The more care involved, the more income depends on wages, staffing and regulation, and the higher the cap rate.
How senior housing NOI works
Senior housing is an operating business. Revenue comes from monthly fees, and the largest expense is labor. Owners either lease the property to an operator under a net lease, collecting fixed rent, or keep the operating income and hire a manager, which in REITs is often called a RIDEA structure. The two produce very different NOI and risk, so check which one a cap rate refers to.
Occupancy is the number buyers watch most. Many communities lost occupancy in 2020 and 2021 and have been rebuilding since, which is part of why cap rates are compressing.
What moves a senior housing cap rate
Care level and building class, as in the table. Occupancy and how fast it is rising. The operator’s track record. Local wages and labor supply. Demographics: the number of people over 80 within a short drive.
For a community still regaining occupancy, the stabilized cap rate guide covers valuing it on its recovered NOI. Cap rates by property type compares senior housing with other sectors.
Sources: Senior Housing News, March 2026, reporting BBG’s spring 2026 survey; CBRE Senior Housing Investor Survey H1 2026.
Frequently asked questions
What is the cap rate for assisted living facilities?
BBG's spring 2026 survey put assisted living in primary markets at 6.78% for Class A and 8.32% for Class C. CBRE's first-half 2026 survey put Class A assisted living in core markets at 6.5%.
Why do assisted living cap rates run higher than independent living?
Assisted living includes daily care, so staffing is heavier, labor costs take a bigger share of revenue and regulation is stricter. That makes income more sensitive to wages and occupancy. Independent living is closer to an apartment with services and trades at lower cap rates.
Are senior housing cap rates going down?
Yes, in 2026 surveys. CBRE's first-half 2026 survey reported independent living and assisted living cap rates each down about 20 basis points, and most investors in BBG's survey expected flat or lower cap rates for the year.