Start with your state's market rate survey
States that receive federal Child Care and Development Fund (CCDF) money must run a child care market rate survey or an alternative cost study regularly (the Georgia report describes this as every three years). The reports list what providers actually charge, often by county or region, by child age, and separately for family child care homes and centers. That makes them the best free, official starting point for pricing a home daycare.
How to read one:
- Find your provider type (family home, not center) and your region or county.
- Look at the percentiles. The 50th percentile is the middle of the local market. The 75th means three in four reporting providers charge that much or less.
- Match the unit: weekly full-day, daily, part-time or drop-in.
- Note the data date. Rates collected two years ago are probably below today's market.
Where to find Georgia, Florida and Texas data
- Georgia: DECAL's Georgia Child Care Market Rate Data report (prepared May 2024 from October 2023 data) reports weekly full-day and drop-in rates for child care learning centers and family child care learning homes, by zone, CAPS participation and Quality Rated level. Statewide percentiles are in Appendix B. The report found that average family home rates were typically lower than center rates, and Zone 1 rates were typically highest.
- Florida: the Division of Early Learning publishes 2024–2025 Market Rate Reports, with statewide full-time and part-time rate files and a county-by-county breakdown.
- Texas: the Texas Workforce Commission's 2024 Texas Child Care Market Rate Survey (UT Austin TXICFW and Ray Marshall Center) covers licensed centers, licensed homes and registered homes, statewide and for each of the 28 local workforce development areas, using eight age groups.
Open the report for your county or region and write down the 50th and 75th percentile weekly full-time rates for each age group you serve. That range is your market.
Know your own costs
Market data tells you what families pay. Your costs tell you whether that price works. List your yearly costs:
- Food not covered by CACFP (see our CACFP guide).
- Supplies, toys, curriculum, cleaning.
- Insurance, licensing fees, required training.
- The business share of home costs (your Time-Space percentage of utilities, rent or mortgage interest, repairs).
- Any assistant's wages, plus self-employment tax and income tax set-asides.
- Paid time off you want to give yourself (holidays, vacation, sick days).
Then the method: (yearly costs + the yearly income you need) ÷ (spots you realistically fill × weeks you are open) = the minimum weekly rate per child. If that number is above your local 75th percentile, look at capacity, costs or your service mix before you raise the price.
Factors that move your price
- Age: infant care usually costs more because of ratio limits. Check your state's group-size rules in our Georgia, Florida and Texas guides.
- Hours: early, late, overnight or weekend care.
- Quality signals: star ratings (such as Georgia's Quality Rated), accreditation, education and curriculum.
- Included extras: meals, diapers, formula, field trips.
- Subsidy participation: state subsidy programs pay set maximum rates that may differ from your private-pay rate. Check your state agency's current subsidy rate tables.
- Waitlist: if you have one, you are probably priced below demand.
Write it into your policies
Put rates in your parent handbook and contract: the weekly rate, when payment is due, late-payment and late-pickup fees, holiday and vacation policy (do families pay for closed days?), registration fees, and how much notice you give before a rate change. Clear written policies prevent most money disputes and support your year-end statements.
Review rates every year
- Check whether your state has published a newer market rate report.
- Compare last year's actual costs from your tax records with your rate math.
- Give families written notice before a change (30 days is common practice; your contract controls).
Know your real costs with the Tax Workbook
Expense, meal and mileage tabs plus a Time-Space calculation give you the yearly cost figures to plug into your pricing math.