A family childcare home is a licensed program run in the provider’s own home for a small group of children. Families often choose it for its smaller size, flexible hours and homelike setting, and it typically costs less than center-based care.
It’s the most accessible way into the childcare industry, where family childcare homes grew 1.4% in 2025 even as licensed centers declined.
Who it suits
People with experience caring for young children, a suitable home, and the patience and structure to run full, predictable days.
Licensing comes first
Every state licenses family childcare. Expect background checks for every adult in the home, a home safety and fire inspection, CPR, first aid and health training, limits on how many children you can care for at each age, and rules on space, meals and record-keeping. Your local Child Care Resource and Referral agency can explain your state’s steps and often offers free training.
Startup costs
Safety equipment (gates, outlet covers, fire extinguishers, smoke and carbon monoxide detectors), age-appropriate furniture, toys and learning materials, cots or cribs, licensing fees and childcare liability insurance.
Pricing and income
Check local rates through your resource and referral agency, and set tuition by age, since infants need more care. Collect tuition in advance, charge for late pickup, and decide your policy for holidays and sick days. Ask whether you can accept state childcare subsidies, and enroll in the USDA Child and Adult Care Food Program to be reimbursed for healthy meals and snacks.
Run it like a business
Use written contracts and parent handbooks, keep careful records, set aside money for taxes, and talk to an accountant about the home-office deduction for space used for care.
Watch out for
Burnout from long days, the strain on your own household, and gaps when a family leaves. Keep a waiting list.
Last reviewed October 17, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
