Residential care homes and assisted living facilities can sometimes look very similar, especially when an assisted living facility operates out of a house in a residential neighborhood. The key difference is not the appearance of the building but its licensing status and how it is regulated. In Texas, a home serving more than three residents that provides assisted living services must be licensed as an assisted living facility, even if it has only a handful of residents. Residential care homes are generally smaller, often serving three or fewer residents, while licensed assisted living facilities may offer additional services, staffing, and amenities depending on their size and license.