The Short Answer Before You Tour
Key facts
A Home for the Aged (HFA) is a home for 21 or more unrelated residents age 55 and older. An adult foster care (AFC) home is licensed under a different law and comes in four sizes, from 3 residents to more than 20. Neither is a nursing home. Both are licensed by the state, and both have inspection reports you can read before you choose.
When families tour care homes in Michigan, they often hear the words "assisted living," "adult foster care," "home for the aged," and "group home" used as if they meant the same thing. They do not. The license a home holds affects who can live there, how large it can be, what rules it follows, and what happens if your parent's needs grow.
This guide explains the difference using Michigan statutes and state licensing documents. It also shows you how to check any home's license and inspection reports yourself, and gives you a way to decide which setting fits your parent.
What Is a Home for the Aged in Michigan?
Under Michigan's Public Health Code, a home for the aged is a supervised personal care facility that provides room, board and supervised personal care to 21 or more unrelated, nontransient individuals who are 55 or older. The law excludes hotels, adult foster care facilities, hospitals, nursing homes and county medical care facilities (MCL 333.20106).
There is one smaller exception. A facility with 20 or fewer residents age 55 or older can still be a home for the aged if it is run in conjunction with, and as a distinct part of, a licensed nursing home.
The Michigan Department of Licensing and Regulatory Affairs (LARA) licenses homes for the aged. Many families know these homes as "assisted living," but that is not the license name. Michigan licenses homes for the aged and adult foster care homes, and some licensed homes call themselves assisted living.
What Is an Adult Foster Care Home in Michigan?
Adult foster care is licensed under a separate law, the Adult Foster Care Facility Licensing Act. It covers homes that provide supervision, personal care and protection to adults who are aged, mentally ill, developmentally disabled or physically disabled, and who need ongoing supervision but not continuous nursing care. The law defines four sizes (MCL 400.703).
Family home
The licensee must live in the home.
Small group home
Adults in a small residential setting.
Large group home
A mid-sized community setting.
Congregate facility
More than 20 adults.
Residents can be younger
AFC homes can serve adults under 55 with disabilities, so some residents in an AFC home may be much younger than your parent.
Size does not tell you the license
Because AFC includes congregate facilities with more than 20 residents, size alone does not tell you which license a home holds. The license does.
Home for the Aged vs. Adult Foster Care: Side-by-Side
| Topic | Home for the Aged (HFA) | Adult Foster Care (AFC) |
|---|---|---|
| Governing law | Public Health Code (MCL 333.20106 and related sections) | Adult Foster Care Facility Licensing Act (MCL 400.703 and related sections) |
| Licensing agency | LARA, Bureau of Community and Health Systems | LARA, Bureau of Community and Health Systems |
| Who can live there | Unrelated residents age 55 and older | Adults who are aged, mentally ill, developmentally disabled or physically disabled |
| Size | 21 or more residents (smaller only if run as part of a licensed nursing home) | Family home 3 to 6; small group 3 to 12; large group 13 to 20; congregate more than 20 |
| Nursing care | May keep a resident who needs continuous nursing care if the resident is receiving services from a licensed hospice program or home health agency | Serves adults who need supervision but not continuous nursing care |
| Admission paperwork | Documented needs and a service plan developed with the resident and representative; written admission contract listing services, fees, fee-change notice, admission and discharge policies, refund policy and resident rights | Written assessment plan at admission; written resident care agreement approved at admission and at least annually |
| Staffing rule | No set staff-to-resident ratio. Must have enough awake, dressed, capable staff on duty at all times | Minimum direct care staff: 1 to 12 residents in family and small group homes; 1 to 15 awake and 1 to 20 asleep in large group and congregate homes |
| Medicines | Administration supervised by the home according to the resident's service plan | Medication administration is a required staff competency under the AFC rules |
| Discharge | 30-day written notice before discharge | Written discharge policy required. Check the rule text for notice periods |
| Visiting | Reasonable, regular visiting hours, not less than 8 hours a day | Resident rights rules apply. Ask the home for its visiting policy |
| Home Help program | Not addressed in the state manual item reviewed. Ask MDHHS | Home Help cannot be approved if the client lives in a licensed or unlicensed foster care home |
Where these facts come from: MCL 333.20106, MCL 400.703, the LARA Homes for the Aged handbook, the AFC technical assistance manual (rev. June 3, 2026), the MDHHS Adult Services Manual item 139, and the AHCA/NCAL Michigan summary.
Rules change. Michigan has proposed revisions to both the home for the aged rules and the adult foster care rules. The state's rule-making site shows no effective date for either as of this writing, so the rows above reflect the rules and LARA guidance in use now. Ask the home or LARA to confirm the current rule text before you rely on a specific number.
What Care Do These Homes Provide?
Both settings provide room, board, supervision and help with daily activities such as bathing, dressing, medicines and meals. Neither is a nursing home, and neither is required to have a nurse on duty around the clock. The AHCA/NCAL summary of Michigan rules reports that neither setting is required to employ registered nurses.
Beyond that, services vary a lot from one home to the next. State licensing sets a floor, not a promise of what a home offers. Therapy, physician visits, dementia programs, activities and transportation depend on the individual home. Ask for each one by name and ask how it is delivered.
For a plain-language look at how assisted living compares with nursing homes and memory care, see our guides on assisted living vs. nursing home and assisted living vs. nursing vs. memory care.
What Happens When Your Parent's Care Needs Increase?
This is the most important question families forget to ask. Both license types have limits, and they differ.
Written for stable needs
The law is written for adults who need supervision but not continuous nursing care. If your parent later needs around-the-clock nursing, the home may not be able to keep them.
Hospice or home health can step in
State rules allow a resident who needs continuous nursing care to stay if they are receiving services from a licensed hospice program or home health agency. The home must also follow its own admission and discharge policies, and written notice of 30 days is required before discharge.
Neither rule guarantees your parent can stay. Each home sets its own policies within the law. Before you sign, ask the home to explain in writing the conditions under which it would ask your parent to leave, and what notice you would receive.
Our levels of care page explains how support can step up over time. If you are weighing a move after a hospital stay, see hospital discharge planning.
Which Is Right for Your Parent?
No license type is better in every case. The right choice depends on your parent's needs, personality and budget. The points below are practical guidance, not legal rules.
An adult foster care home may fit well when
- Your parent needs light to moderate help and is likely to stay stable.
- A quiet, home-like setting with a few residents matters more than a large community.
- You found a licensed small home close to family, with a clean inspection history.
- Your parent does best with a few familiar faces rather than many.
A home for the aged may fit well when
- You expect needs to grow and want fewer moves.
- Your parent enjoys groups, activities and dining with others.
- You want several services coordinated in one place, such as therapy, medicine oversight and physician visits. Confirm how each is delivered.
- Your parent may need hospice or home health services later and you want to know the home allows it.
What about dementia?
A license type does not tell you whether a home provides memory care. Ask any home you tour how staff are trained in dementia, how nights are covered, how exits are secured, and what happens if your parent wanders. Our memory care page explains what we offer, and the early signs of dementia guide can help you decide how soon to plan.
Quality is in the details
Size and license type do not guarantee quality. The inspection reports, the staffing at night and the answers a home gives in writing tell you far more.
How to Check a Michigan Home's License and Inspection Reports
LARA runs a public search for adult foster care and homes for the aged. Each facility has a profile page with license details and downloadable reports. Here is how to use it.
- Search for the homeSearch by name, address or license number on the LARA adult foster care and homes for the aged search.
- Confirm the license statusCheck the effective and expiration dates. Make sure the license is current.
- Check the facility type and capacityThe profile shows whether the home is licensed as a home for the aged or one of the adult foster care types. License numbers start with letters that signal the type: AH for a home for the aged, and AS, AF or AM for adult foster care homes (LARA labels these small group, family and medium group homes). LARA's labels and capacity ranges do not always match the statute's category names, so rely on the profile and ask the home to explain.
- Read "Serves" and "Special Certification"They show the population the home is licensed to serve. For example, "Serves" can list Alzheimers. Special Certification may be blank.
- Open the reportsA profile can list an original licensing study report, renewal inspection reports, any special investigation reports and addenda, each with a publication date.
- Read each report in fullLARA's page advises doing this. A single line can be misleading without context.
- Ask the home about every findingAsk what changed and when. Corrective action plans can be requested through the Freedom of Information Act, according to the LARA page.
An empty report list does not prove a home is excellent, and one older finding does not prove it is unsafe. Look at the pattern across dates, and compare what the home tells you with what the report says.
Our 20 questions to ask when touring an assisted living facility includes questions about inspections and staffing. Our resident rights page explains what every resident is entitled to.
If You Have a Concern About a Licensed Home
File a complaint using the LARA complaint form or call this number.
Free, confidential help from the state's advocates. It serves residents and families in nursing homes, adult foster care facilities and homes for the aged.
In an emergency, call 911.
Sources for these numbers: LARA complaint page and Michigan Legal Help.
How Payment Works in Each Setting
Michigan sets licensing rules, not prices. A private-pay home sets its own rates. Ask for a written fee schedule that shows what the base rate includes and what costs extra. For a home for the aged, state rules require the written admission agreement to list services and fees and how fee changes will be announced.
Medicaid and room and board
According to Nolo's Michigan guide (updated April 29, 2025), Michigan does not have a Medicaid program that pays for room and board in an assisted living facility. People in certain waiver programs can still get some care services covered. MI Choice, the state's home and community based waiver, is described by MDHHS as coverage for eligible adults who need nursing facility services that can be provided in their own home or another residential setting. Eligibility depends on income, assets and need for care. See our Michigan Medicaid guide for seniors for current details.
Home Help
The MDHHS Adult Services Manual states that Home Help services cannot be approved if a client lives in a licensed or unlicensed foster care home (ASM 139). That item does not mention homes for the aged, so ask MDHHS how Home Help applies to a parent in a home for the aged.
State payments for people who receive SSI
MDHHS publishes yearly payment levels for people who receive Supplemental Security Income (SSI) and live in licensed settings. The 2026 amounts for one person are below. Bulletin ASB 2026-003 reports a 2.8% SSI increase effective January 1, 2026.
| Setting (individual) | Total monthly | Maximum to the provider | Kept by the resident |
|---|---|---|---|
| Home for the aged | $1,173.30 | $1,129.30 | $44 |
| Adult foster care, personal care | $1,151.50 | $1,107.50 | $44 |
| Adult foster care, domiciliary care | $1,081.00 | $1,037.00 | $44 |
Source: MDHHS RFT 248, SSI Payment Levels (amounts effective January 1, 2026). These are state payment levels, not a promise that any home accepts them. Many homes charge more and some do not accept SSI at all, so ask each home directly. ASB 2026-003 also lists a Medicaid personal care supplement of $250.92.
Veterans
Veterans and surviving spouses may qualify for Aid and Attendance. See our VA benefits guide.
Private pay
For private-pay figures and what drives them, read our Michigan cost guide.
Ten Questions to Ask Any Home Before You Decide
- What license does the home hold, what is the license number, and what is the licensed capacity?
- Is the license current? When was the last renewal inspection, and were there any special investigations?
- What level of care can you provide today, and what would make you ask my parent to leave?
- How many staff are on duty during the day and overnight? Are they awake overnight?
- Who gives medicines, and how are mistakes caught and reported?
- Can you work with hospice or a home health agency if my parent needs more care?
- What exactly is included in the monthly fee, and what costs extra?
- How much notice do you give before fee changes, and before discharge?
- What training do staff have in dementia care, falls and emergencies?
- May I speak with current residents or families, and visit unannounced?
Where Dream Estates Fits
Dream Estates is licensed as a Home for the Aged and is located at 16000 Pembroke Ave in Detroit. We would rather you choose the right setting than choose us. If a smaller adult foster care home fits your parent, that is a good outcome. If you want to compare, you can read about our admission process, our services and our respite care, which lets a family try a stay before a long-term move.
Frequently Asked Questions
Is a home for the aged the same as assisted living in Michigan?
What is the difference between adult foster care and a home for the aged?
Can a home for the aged care for someone who needs nursing care?
How many residents can an adult foster care home have?
Is adult foster care cheaper than a home for the aged?
How do I check if a Michigan home is licensed?
Who do I contact if I think a resident is not being cared for properly?
Can Home Help pay for care in an adult foster care home?
The Bottom Line
Choose by license, inspection record, honest answers about what happens when needs change, and fit with your parent's personality. Verify before you sign, and put the important promises in writing.
Ready to Compare?
Call us and we will talk through your parent's needs, the license types, and whether Dream Estates is the right fit. If the answer is no, we will tell you.