Do I need a license to open a care home in Texas?

In Texas, you do not need a state assisted living license to care for 3 or fewer residents — you simply enroll with HHSC as Adult Foster Care. The 4th unrelated resident is the line: at four or more, you need a Type A or Type B assisted living license (Texas no longer issues the old Type C).

Written by Erika Crossley, senior living operator — not an attorney · Information last verified June 2026

This is general information, not legal advice. Erika Crossley is not an attorney. Texas law here turns on your specific property, your recorded deed restrictions, your city, and your individual residents — and municipal ordinances change without notice. Every document she prepares is a first draft for review and signature by your own licensed Texas attorney before it is used with a resident. No outcome, including license approval or permit approval, is guaranteed. Do not buy a property in reliance on this page. Take it to a Texas attorney first.

The 3-resident line

This is the rule almost nobody explains clearly. A home caring for 1–3 adults is Adult Foster Care: you enroll with HHSC, but there is no facility license and no commercial build-out. You must live in the home and share common areas with your residents.

Add a 4th resident and you cross into licensed assisted living. Because Texas retired the old Type C license, a new operator at 4+ residents needs a Type A or Type B ALF license.

Boarding homes: no license, no cap — but no personal care

There is a separate path: a boarding home provides lodging and light services (meals, housekeeping, help with self-administered medication) to any number of residents, with no state license and no resident cap. The catch is that the moment you provide hands-on personal care, you are an assisted living facility and need the license. Some cities, including Houston, require a local boarding-home permit.

See which path fits your home →

Common questions

How many residents can I have without a license in Texas?

Up to 3 as Adult Foster Care (HHSC enrollment, no license). A boarding home that provides no personal care has no state resident cap, but cannot give hands-on care.

Can I call my 3-resident home "assisted living"?

No. The "assisted living" designation and the ability to provide personal care to 4+ residents both require an HHSC license. A 1–3 resident home operates as Adult Foster Care.

Is there still a Type C license in Texas?

No. Texas no longer issues the legacy Type C (4-resident) license. A new operator who needs a license gets a Type A or Type B.

Related license types

Adult Foster Care (no license) →Boarding Home (no license) →Type A ALF (licensed) →