FAQ About Opening a Sober Living Business in South Carolina [2026]

Opening a sober living home in South Carolina does not require a specific state-level license, though local municipalities may have their own permitting, zoning, or occupancy requirements. SCARR (South Carolina Alliance for Recovery Residences) certification is strongly recommended and increasingly important for operators who want court referrals, state agency referrals, and access to public funding. Legislative developments including HB 3997 and Act 160 of 2024 have introduced a credentialing framework that shapes the recovery housing landscape. South Carolina’s affordable real estate, growing population, and rising demand for quality recovery housing make it an attractive market for recovery residence operators in 2026.

This guide answers every frequently asked question we receive from operators considering South Carolina, from regulatory requirements and SCARR certification to startup costs, funding sources, zoning compliance, and the best markets across the state.

South Carolina Regulatory Overview

South Carolina does not require a specific state-level license or permit to operate a basic sober living home. Unlike treatment centers, which face rigorous licensing through the SC Department of Health and Environmental Control (DHEC), recovery residences operate in a different regulatory category. However, local municipalities may have their own permitting, zoning, or occupancy requirements that operators must research and comply with. This distinction is important: if your home provides clinical treatment services, you will need DHEC licensure, but a peer-run or monitored sober living environment focused on housing and recovery support does not require a clinical license.

That said, the regulatory landscape in South Carolina has changed significantly in recent years. Operators who plan to serve residents referred by the courts, receive state agency referrals, or access state funding through DAODAS must now meet credentialing requirements established by recent legislation.

HB 3997 and Act 160 of 2024

HB 3997 was an early legislative effort that introduced regulatory provisions for recovery residences in South Carolina. The bill addressed the need for operational standards, resident protections, and a credentialing mechanism for recovery housing. This legislative trajectory culminated in Act 160 of 2024, which established the current credentialing framework.

Under Act 160, the following key provisions now apply:

• Court referrals: South Carolina courts may not require individuals to enter recovery housing as a condition of probation or bond unless the facility holds SCARR certification or is an Oxford House.
• State agency referrals: State agencies may only refer individuals to credentialed recovery housing.
• DAODAS funding: Recovery Housing Assistance funds administered by DAODAS are restricted to SCARR-certified homes and Oxford Houses.
• Public registry: SCARR must publish and maintain a registry of all certified recovery housing, updated at least every 60 days.

While certification remains technically voluntary, the practical reality is that uncertified homes cannot access the most significant referral pipelines and funding streams in South Carolina. For operators building a sustainable business, SCARR certification is effectively a baseline requirement.

The Role of DAODAS

The South Carolina Department of Alcohol and Other Drug Abuse Services (DAODAS) plays a central role in the state’s recovery housing ecosystem. DAODAS administers Recovery Housing Assistance funds, oversees substance abuse prevention and treatment programs, and serves as the state authority that approved SCARR as the certifying body under Act 160. Operators should establish a relationship with DAODAS early in their planning process, as the agency can provide guidance on funding eligibility, referral networks, and compliance requirements.

For the most current regulatory information, check with SCARR and DAODAS directly, and review the sober living home licensing requirements by state guide for broader context on how South Carolina compares to other states.

SCARR Certification: SC’s NARR Affiliate

The South Carolina Alliance for Recovery Residences (SCARR) is a 501(c)(3) nonprofit organization and the official NARR (National Alliance for Recovery Residences) affiliate for South Carolina. SCARR has been approved by the BHDD Office of Substance Use Services to develop and administer the state’s voluntary certification program for recovery residences.

For a deep dive into SCARR’s history, standards, fee structure, and step-by-step application process, see our complete South Carolina NARR State Affiliate (SCARR) guide.

NARR Certification Levels

SCARR certifies recovery residences at all four NARR levels of support:

• Level 1 (Peer-Run): Democratically operated homes with no paid staff requirement. Residents govern the house together with shared accountability.
• Level 2 (Monitored): A house manager provides oversight, regular monitoring, structured rules, and connection to recovery services. This is the most common certification level for new operators.
• Level 3 (Supervised): 24/7 staff presence with paid employees providing structured programming and service coordination.
• Level 4 (Service Provider): Integrated clinical services with credentialed staff. Licensed facility standards may apply at this level.

Most new operators in South Carolina start at Level 1 or Level 2. As your organization matures and your capacity grows, you can pursue higher levels of certification to serve populations with greater needs.

SCARR Certification Process

The certification process involves several steps:

1. Review NARR Standard 3.0: Study the national quality standards and assess your current operations against them.
2. Pay application fee: A nonrefundable $50 application fee initiates the process.
3. Submit documentation: Provide organizational policies, resident agreements, staff qualifications, safety documentation, and insurance verification.
4. Document review: SCARR reviews all submitted materials and identifies any deficiencies.
5. On-site compliance visit: SCARR conducts a physical inspection to verify facility compliance, safety standards, and recovery-supportive environment.
6. Training: Owner, manager, and staff must complete required training modules.
7. Certification issuance: Pay the $200 certification fee (plus $5 per bed over 10 beds), receive your Certificate of Compliance, and get listed on the SCARR registry.

Benefits of SCARR Certification

Beyond regulatory compliance, SCARR certification provides tangible business advantages:

• Referral access: Court referrals, probation officer referrals, and state agency referrals are restricted to certified homes.
• Funding eligibility: DAODAS Recovery Housing Assistance funds and many grant programs require certification.
• Credibility: Certification signals quality to treatment centers, hospitals, families, and prospective residents.
• Network access: Join a community of certified operators for best practice sharing and professional development.
• Registry listing: Certified homes appear on SCARR’s official public registry, improving discoverability.

For the complete certification walkthrough, including fee calculations and post-certification requirements, read our NARR certification guide.

Step-by-Step: Opening a Sober Living Home in SC

Whether you are a person in long-term recovery looking to give back, a real estate investor diversifying into purpose-driven housing, or a behavioral health professional expanding your service continuum, the following ten steps will guide you through launching a sober living home in South Carolina.

For a comprehensive national perspective on this process, see our guide on how to start a sober living home.

Step 1: Research Your Market

South Carolina’s major recovery housing markets include Charleston, Greenville, Columbia, Myrtle Beach, Spartanburg, and Rock Hill. Each market has different demand characteristics, cost structures, and competitive landscapes. Research the number of existing recovery homes in your target area, local treatment center density (which drives referrals), and population demographics. Look at SCARR’s certified listings to understand where gaps exist.

Step 2: Develop a Business Plan

Your business plan should cover startup costs, projected monthly revenue and expenses, target occupancy rates, resident fee structures, marketing strategy, and a timeline to SCARR certification. Include a realistic break-even analysis. Recovery housing is a social enterprise, but it must be financially sustainable to serve residents over the long term.

Step 3: Choose Your Legal Structure

Most South Carolina sober living operators form an LLC or a nonprofit 501(c)(3). An LLC provides liability protection and operational flexibility. A nonprofit structure opens additional funding and grant opportunities but comes with governance and reporting requirements. Consult a South Carolina attorney who understands recovery housing to determine the best structure for your situation.

Step 4: Secure Appropriate Insurance

Recovery housing insurance typically includes general liability, property coverage, professional liability (if providing any services), and directors and officers coverage (for nonprofits). Work with an insurance broker who has experience with recovery residences. SCARR certification may help you secure better rates, as it signals risk management practices to insurers.

Step 5: Find and Prepare Your Property

Look for properties in residential neighborhoods that are zoned for your intended use. South Carolina properties should meet fire safety codes, ADA accessibility requirements where applicable, and all local building codes. Homes with 4-8 beds are the most common starting point for new operators. Ensure each resident has adequate personal space, and that common areas support a recovery-oriented community.

Step 6: Understand Local Zoning

Before signing a lease or purchasing a property, verify that recovery housing is permitted under the local zoning ordinance. South Carolina municipalities have varying approaches to zoning for group living situations. The Municipal Association of South Carolina has historically provided guidance to cities on this topic. See the zoning section below for more detail.

Step 7: Develop House Policies and Procedures

Create written policies covering house rules, drug and alcohol testing, curfews, guest policies, grievance procedures, resident rights, discharge criteria, and medication management. These documents are required for SCARR certification and serve as the operational foundation of your home.

Step 8: Pursue SCARR Certification

Begin the SCARR application process as early as possible. Certification takes time and requires thorough documentation and an on-site inspection. Starting this process before you open allows you to be certified at or near launch, which immediately qualifies you for court and agency referrals.

Step 9: Build Referral Relationships

Connect with local treatment centers, hospitals, therapists, probation officers, drug court programs, and community recovery organizations. In South Carolina, court and probation referrals are restricted to certified homes, so your SCARR certification is a key differentiator in building these relationships. Attend local recovery community events and join the recovery housing network in your area.

Step 10: Launch and Operate

With your property prepared, policies in place, insurance secured, and SCARR certification underway, you can begin accepting residents. Focus on maintaining high standards from day one. Your reputation in the recovery community will be your most valuable marketing asset. Track occupancy, resident outcomes, and financial performance monthly, and use that data to refine your operations.

South Carolina Startup Costs and Revenue

South Carolina’s cost of living is below the national average, which creates an accessible entry point for new recovery housing operators. However, costs vary significantly by market. The following estimates provide ranges based on typical South Carolina scenarios.

Startup Cost Breakdown

Category	Estimated Range
Security deposit and first/last month rent	$2,000 - $6,000
Furnishing (beds, common areas, kitchen)	$2,000 - $8,000
Safety equipment (fire extinguishers, smoke detectors, first aid)	$300 - $800
Insurance (first year)	$1,500 - $4,000
LLC or nonprofit formation	$200 - $1,500
SCARR certification fees	$250 - $350
Drug testing supplies	$200 - $600
Technology (management software, Wi-Fi)	$100 - $500
Marketing and website	$500 - $2,500
Working capital (2-3 months operating expenses)	$3,000 - $12,000
Total Estimated Startup	$8,000 - $35,000

Cost Variations by Market

• Charleston: Higher rents and property costs due to tourism economy and population growth. Expect the upper end of the startup range. Monthly rents for suitable properties may run $1,800-$3,500.
• Greenville: A growing market with moderate costs. Rents typically range from $1,200-$2,500 for appropriate properties. Strong institutional support from healthcare systems and recovery organizations.
• Columbia: The state capital offers moderate costs and proximity to state agencies, courts, and university-affiliated treatment resources. Rents in the $1,000-$2,200 range.
• Myrtle Beach: Seasonal tourism affects the market. Affordable off-season rents but unique challenges with transient populations. Properties may range $1,000-$2,000.
• Spartanburg and Rock Hill: More affordable markets in the $800-$1,800 range, with growing demand and less competition.

Revenue Projections

Monthly resident fees in South Carolina typically range from $450-$900 per person, depending on the market, level of support, and amenities. A six-bed home charging $600 per resident would generate $3,600 per month at full occupancy. After expenses (rent, utilities, insurance, supplies, management), net operating margins for well-run homes may range from 15-35% at stabilized occupancy — though new operators should expect significantly lower margins (or operating losses) during the ramp-up period while building referral relationships and community reputation.

Revenue grows as you add homes and achieve higher occupancy rates. Some successful South Carolina operators reach profitability within 6-12 months of opening their first home, but timelines vary widely based on market conditions, competition, referral network strength, and operational execution. These projections are illustrative, not guaranteed, and actual results will depend on your specific circumstances.

Funding for SC Recovery Homes

Securing startup and operating capital is one of the biggest challenges for new recovery housing operators. South Carolina offers several funding pathways, particularly for operators who achieve SCARR certification. However, eligibility requirements are strict, funding is competitive, and not all operators will qualify. Many programs require nonprofit status, NARR/SCARR certification, demonstrated operational history, or specific population focus. The funding sources described below are not guaranteed — always verify current availability, eligibility criteria, and application deadlines directly with the administering agency.

Federal Funding Sources

SAMHSA Grants: The Substance Abuse and Mental Health Services Administration offers grants relevant to recovery housing, including the State Opioid Response (SOR) grants administered through DAODAS. These grants often prioritize certified recovery housing providers. Monitor SAMHSA’s grant announcements for current opportunities.

HUD Recovery Housing Program: The U.S. Department of Housing and Urban Development provides Recovery Housing Program (RHP) funds through Continuums of Care. South Carolina’s CoC organizations distribute these funds to eligible recovery housing providers. NARR/SCARR certification is typically required for eligibility.

FEMA and Disaster Recovery: South Carolina’s coastal vulnerability means federal disaster recovery funds occasionally become available for housing programs, including recovery residences.

State Funding Sources

Opioid Settlement Funds: South Carolina receives ongoing opioid settlement allocations from the national settlements with pharmaceutical distributors and manufacturers. DAODAS plays a role in distributing these funds, and recovery housing is among the eligible uses. SCARR-certified operators are positioned to receive these allocations.

DAODAS Recovery Housing Assistance: Under Act 160 of 2024, DAODAS Recovery Housing Assistance funds are restricted to SCARR-certified homes and Oxford Houses. This is a direct funding stream that uncertified operators cannot access.

State Block Grants: South Carolina receives Substance Abuse Prevention and Treatment (SAPT) block grant funds from SAMHSA, a portion of which supports recovery support services including housing.

Private and Philanthropic Funding

• Community foundations: South Carolina has active community foundations in Charleston, Greenville, Columbia, and the Midlands that fund health-related initiatives.
• Healthcare system partnerships: Major systems like Prisma Health and MUSC may partner with or fund recovery housing connected to their treatment programs.
• Faith-based organizations: South Carolina has a strong faith community tradition of supporting recovery and housing initiatives.

For a comprehensive guide to recovery housing funding strategies, see our article on grants for recovery homes and halfway houses.

SC Recovery Housing Market

South Carolina’s demand for quality recovery housing continues to grow, driven by population increases, the ongoing impact of the opioid and fentanyl crisis, and expanding access to treatment. The state reports significant overdose mortality each year, underscoring the urgent need for recovery support infrastructure.

Key Markets

Charleston: The fastest-growing metro in South Carolina, with a population that has increased substantially over the past decade. The combination of a large healthcare presence, active drug court system, and growing awareness of recovery needs creates sustained demand. However, higher property costs mean operators need to be strategic about location within the metro area.

Greenville: An emerging recovery community with strong institutional support. Greenville’s healthcare infrastructure, including Prisma Health’s Greenville Memorial campus, drives treatment referrals. The city has a growing recovery community organization scene that supports referral networks.

Columbia: As the state capital and home to the University of South Carolina, Columbia offers proximity to state agencies, courts, and the DAODAS central office. The moderate cost of living and central location make it a strategic choice for operators who want to serve multiple referral sources.

Myrtle Beach: The tourism economy creates unique recovery community dynamics. Seasonal employment patterns and a transient population contribute to substance use challenges. Recovery housing operators in the Myrtle Beach area serve a distinct population that often includes individuals from out of state.

Underserved Populations

South Carolina has documented shortages of recovery housing for specific populations, including women, LGBTQIA+ individuals, veterans, and people of color. Operators who focus on underserved demographics may find less competition, stronger community support, and additional funding opportunities targeted at reducing disparities.

Zoning and Compliance

Zoning is one of the most significant practical challenges for sober living operators in South Carolina. Understanding the zoning landscape and your rights under federal law is critical before you commit to a property.

Municipal Zoning in South Carolina

South Carolina municipalities have varying zoning approaches to group living situations, and occupancy limits differ from one jurisdiction to the next. Some cities classify recovery residences as standard residential uses when the number of residents falls within the local definition of a “family” or household. Others have enacted occupancy limits, distance requirements, or special use permit requirements that can create barriers. You must verify the specific zoning rules, occupancy limits, and permitting requirements in your municipality before committing to a property.

The Municipal Association of South Carolina has historically provided guidance to cities and towns on regulating recovery housing. This guidance has evolved over time, and operators should review the current zoning ordinances in their specific municipality before selecting a property.

Fair Housing Act Protections

The federal Fair Housing Act (FHA) protects individuals in recovery from substance use disorders as persons with disabilities. Under the FHA, local governments cannot:

• Apply zoning restrictions to recovery residences that they do not apply to similar residential uses.
• Impose distance or spacing requirements that are discriminatory on their face or in effect.
• Deny reasonable accommodations that would allow a recovery residence to operate in a residential zone.

If you encounter zoning resistance, you have the right to request a reasonable accommodation from the local government. Document everything in writing. If the accommodation is denied, you may have grounds for a Fair Housing complaint with HUD or the South Carolina Human Affairs Commission.

South Carolina Court History

South Carolina courts have ruled inconsistently on zoning challenges involving recovery residences. Some courts have upheld municipal occupancy limits on unrelated individuals living together, while others have found such limits discriminatory when applied selectively to people in recovery. Distance requirements between recovery homes have also faced mixed judicial treatment.

This inconsistency means operators should work proactively with municipalities rather than assuming a particular outcome. Engage local government early, be transparent about your plans, and emphasize the community benefits of quality recovery housing.

Compliance Checklist for SC Operators

• Verify zoning permits recovery housing use before signing a lease or purchasing property.
• Review local occupancy limits and understand how they apply to your home.
• Check for any distance or spacing requirements for group living facilities.
• Ensure your property meets all fire safety and building code requirements.
• Obtain required business licenses or permits from the county or municipality.
• Maintain liability insurance that covers your specific operations.
• Keep records of all compliance-related communications with local government.
• If zoning issues arise, document your reasonable accommodation request in writing.

How Sober Living App Helps SC Operators

Running a SCARR-certified recovery residence in South Carolina requires organized operations, thorough documentation, and reliable compliance tracking. Sober Living App provides the all-in-one management platform that South Carolina operators need to stay organized and audit-ready.

With Sober Living App, you can manage resident intake and tracking, collect rent and fees, schedule and document drug testing, maintain house meeting records, coordinate care with treatment providers, and generate the reports that SCARR requires for certification and ongoing compliance. Our platform is used by recovery residence operators across the country, from single-home operations to multi-property organizations.

Start your free trial today and see how Sober Living App can help you launch and grow your South Carolina recovery housing business.