How Much Does It Cost to Start a Storage Unit Facility?
Last updated: March 2026
National Average
Low
$200,000
Medium
$600,000
High
$2,000,000
Start a self-storage facility offering climate-controlled and standard storage units to residential and business customers.
Time to Launch
12-36 months
Profit Margins
30-50%
Break-Even Timeline
24-60 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Storage Unit Facility in Nationally
Budget:
$200,000
$250,000
$15,000
$8,000
$2,500
$8,000
$8,000
$6,000
Options
Employees:
One-Time Costs
$497,500
Monthly Costs
$0
First Year Total
$497,500
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $170,000 | $510,000 | $1,700,000 | $50 | 7.0% |
| West Virginia | $172,000 | $516,000 | $1,720,000 | $100 | 6.0% |
| Alabama | $176,000 | $528,000 | $1,760,000 | $200 | 4.0% |
| Arkansas | $178,000 | $534,000 | $1,780,000 | $45 | 6.5% |
| Oklahoma | $178,000 | $534,000 | $1,780,000 | $100 | 4.5% |
| Kansas | $180,000 | $540,000 | $1,800,000 | $160 | 6.5% |
| Indiana | $182,000 | $546,000 | $1,820,000 | $95 | 7.0% |
| Iowa | $182,000 | $546,000 | $1,820,000 | $50 | 6.0% |
| Michigan | $182,000 | $546,000 | $1,820,000 | $50 | 6.0% |
| Nebraska | $182,000 | $546,000 | $1,820,000 | $105 | 5.5% |
| Ohio | $182,000 | $546,000 | $1,820,000 | $99 | 5.8% |
| Kentucky | $184,000 | $552,000 | $1,840,000 | $40 | 6.0% |
| Louisiana | $184,000 | $552,000 | $1,840,000 | $100 | 4.5% |
| Missouri | $184,000 | $552,000 | $1,840,000 | $50 | 4.2% |
| Tennessee | $184,000 | $552,000 | $1,840,000 | $300 | 7.0% |
| Texas | $184,000 | $552,000 | $1,840,000 | $300 | 6.3% |
| Georgia | $188,000 | $564,000 | $1,880,000 | $100 | 4.0% |
| Illinois | $190,000 | $570,000 | $1,900,000 | $150 | 6.3% |
| New Mexico | $190,000 | $570,000 | $1,900,000 | $50 | 5.1% |
| Wisconsin | $190,000 | $570,000 | $1,900,000 | $130 | 5.0% |
| North Carolina | $192,000 | $576,000 | $1,920,000 | $125 | 4.8% |
| South Carolina | $192,000 | $576,000 | $1,920,000 | $110 | 6.0% |
| South Dakota | $194,000 | $582,000 | $1,940,000 | $150 | 4.5% |
| Minnesota | $196,000 | $588,000 | $1,960,000 | $155 | 6.9% |
| North Dakota | $198,000 | $594,000 | $1,980,000 | $135 | 5.0% |
| Wyoming | $200,000 | $600,000 | $2,000,000 | $100 | 4.0% |
| Nevada | $204,000 | $612,000 | $2,040,000 | $425 | 6.8% |
| Arizona | $206,000 | $618,000 | $2,060,000 | $50 | 5.6% |
| Florida | $206,000 | $618,000 | $2,060,000 | $125 | 6.0% |
| Idaho | $206,000 | $618,000 | $2,060,000 | $100 | 6.0% |
| Pennsylvania | $206,000 | $618,000 | $2,060,000 | $125 | 6.0% |
| Delaware | $208,000 | $624,000 | $2,080,000 | $110 | 0.0% |
| Virginia | $208,000 | $624,000 | $2,080,000 | $100 | 4.3% |
| Colorado | $212,000 | $636,000 | $2,120,000 | $50 | 2.9% |
| Montana | $212,000 | $636,000 | $2,120,000 | $70 | 0.0% |
| Utah | $212,000 | $636,000 | $2,120,000 | $54 | 4.8% |
| Oregon | $224,000 | $672,000 | $2,240,000 | $100 | 0.0% |
| Vermont | $224,000 | $672,000 | $2,240,000 | $125 | 6.0% |
| Maine | $228,000 | $684,000 | $2,280,000 | $175 | 5.5% |
| Rhode Island | $232,000 | $696,000 | $2,320,000 | $150 | 7.0% |
| New Hampshire | $234,000 | $702,000 | $2,340,000 | $102 | 0.0% |
| Washington | $236,000 | $708,000 | $2,360,000 | $200 | 6.5% |
| Connecticut | $238,000 | $714,000 | $2,380,000 | $120 | 6.3% |
| New Jersey | $250,000 | $750,000 | $2,500,000 | $125 | 6.6% |
| Alaska | $254,000 | $762,000 | $2,540,000 | $250 | 0.0% |
| Maryland | $258,000 | $774,000 | $2,580,000 | $100 | 6.0% |
| California | $270,000 | $810,000 | $2,700,000 | $70 | 7.3% |
| New York | $278,000 | $834,000 | $2,780,000 | $200 | 4.0% |
| Massachusetts | $300,000 | $900,000 | $3,000,000 | $500 | 6.3% |
| Hawaii | $386,000 | $1,158,000 | $3,860,000 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$510,000
- West Virginia$516,000
- Alabama$528,000
- Arkansas$534,000
- Oklahoma$534,000
5 Most Expensive States
- Hawaii$1,158,000
- Massachusetts$900,000
- New York$834,000
- California$810,000
- Maryland$774,000
Frequently Asked Questions
Self-storage facilities are capital-intensive, requiring $200,000–$600,000 for a small facility (50–100 units) and $1M–$5M+ for large facilities. Ground-up construction costs $35–$60/sq ft for basic units, plus land, permits, security, and software. Many investors acquire existing facilities to reduce development risk.
Self-storage has among the highest NOI margins of any real estate asset class (35–45% net margin). A 200-unit facility averaging $100/unit/month at 90% occupancy generates $18,000/month ($216,000/year) gross. Operating expenses of $8,000–$10,000/month yield $96,000–$120,000 NOI annually.
Most operators consider 30,000–50,000 net rentable square feet the minimum for a stand-alone viable facility. This typically means 200–400 units. Smaller facilities (50–100 units) can work as additions to existing property (farm, commercial building) where land costs are near zero.
Climate control adds $10–$20/sq ft to construction costs but allows $0.80–$1.50/sq ft/month rates vs. $0.50–$0.80/sq ft for standard storage — a 30–50% rate premium. In markets with extreme heat or cold, climate control has high demand. It's worth the investment in most major metro markets.