Best States to Start a Repair, Personal Care, or Other Services Business in 2026
NAICS 81 covers auto repair, hair salons and barber shops, dry cleaners, personal care services, religious and civic organizations, and equipment repair. It is the most stable major sector we track. State-by-state risk ranges from 28.9 (South Dakota) to 64.0 (District of Columbia), a spread of 35.1 points, narrower than every other sector except healthcare.
The 10 strongest states for new other-services businesses
These states share the structural traits that favor non-discretionary household services: stable population bases, retention rates that hold up because demand is local and recurring, and wage pressure that does not race ahead of pricing power.
Other Services Entry Risk: Top 10 States (2026)
| Rank | State | Risk Score | Classification |
|---|---|---|---|
| #1 | South Dakota | 28.9 | low |
| #2 | Nebraska | 30.5 | moderate |
| #3 | Iowa | 32.5 | moderate |
| #4 | West Virginia | 32.7 | moderate |
| #5 | Indiana | 33.9 | moderate |
| #6 | North Dakota | 35.0 | moderate |
| #7 | Ohio | 35.8 | moderate |
| #8 | Mississippi | 35.9 | moderate |
| #9 | Maine | 36.7 | moderate |
| #10 | South Carolina | 37.9 | moderate |
51-state average: 44.9. Sector volatility index: 32.6 (the lowest of any tracked sector). 884,354 other-services establishments nationally.
Why other services is the most stable major sector
Demand for repair shops, hair salons, dry cleaners, and personal care services is largely non-discretionary and locally consumed. A household that needs a haircut still needs one in a recession. A car that needs a brake job still needs it. This produces the lowest sector-wide volatility we track (32.6 on the index), which translates into the most predictable revenue base for new entrants in this category.
South Dakota sits at the 100th percentile for retention, meaning new other-services establishments here clear the 5-year mark at higher rates than 100% of all states. Retention in this sector tracks closely with population stability and the local relationship economy: customers stick with the same dry cleaner, the same hair salon, the same auto shop for years.
Saturation matters less here than it might appear. The other-services category is fragmented into many subsectors with different competitive dynamics. A new auto repair shop competes with other repair shops; a new salon competes within a 3-mile radius. Statewide saturation is a coarse signal. The metro reports surface where specific subsectors have room.
The five hardest states for other-services entry
Even the worst-scoring states for this sector post entry risk that is more workable than the worst-scoring states for hospitality, finance, or construction. The relative differences here matter at the margin, not at the threshold.
Other Services Entry Risk: Bottom 5 States (2026)
| Rank | State | Risk Score | Classification |
|---|---|---|---|
| #51 | District of Columbia | 64.0 | high |
| #50 | Hawaii | 61.9 | high |
| #49 | Connecticut | 59.1 | high |
| #48 | Massachusetts | 58.0 | high |
| #47 | New York | 57.7 | high |
These states post elevated risk primarily because of wage pressure: hourly labor costs in personal care, auto repair, and similar trades have risen faster than service prices. New entrants in these states absorb the wage gap until they can establish enough customer relationships to support price increases.
Reading the score
Other services entry risk weights are: retention 30%, momentum 20%, volatility 15%, saturation 20%, wage pressure 15%. These weights reflect this sector's specific dynamics: retention dominates because the local relationship business model rewards survival, and saturation is weighted heavier than in some sectors because most other-services subsectors have geographic micro-markets. See the full methodology.
Auto repair, hair salons, dry cleaners, religious organizations, and equipment repair operate on different micro-economics. State scores filter; metro reports break out the subsectors so you can see where specific concepts have room.
Where to read more
- All 51 states for other services with full metric tables.
- Other services in South Dakota (#1) with metro breakdown.
- Other services in Nebraska (#2).
- Other services in Iowa (#3).
- Other services in District of Columbia for the toughest example.
- Methodology with the full scoring formulas.
- Data sources from U.S. Census BDS and BLS QCEW.