<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheet and consolidated statements of operations of
Alternative Living Services, Inc., filed with the Company's Form 10-Q for the
period ended September 30, 1998 and is qualified in its entirety by reference to
such financial statements and related footnotes.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                          65,957
<SECURITIES>                                         0
<RECEIVABLES>                                    3,885
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                97,978
<PP&E>                                         598,555
<DEPRECIATION>                                (16,944)
<TOTAL-ASSETS>                                 736,938
<CURRENT-LIABILITIES>                           57,547
<BONDS>                                        480,150
<PREFERRED-MANDATORY>                          177,287
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                     (7,244)
<TOTAL-LIABILITY-AND-EQUITY>                   736,938
<SALES>                                        167,969
<TOTAL-REVENUES>                               167,969
<CGS>                                                0
<TOTAL-COSTS>                                  164,487
<OTHER-EXPENSES>                                    85
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               5,285
<INCOME-PRETAX>                                 13,730
<INCOME-TAX>                                     (549)
<INCOME-CONTINUING>                             14,279
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    14,279
<EPS-PRIMARY>                                      .65
<EPS-DILUTED>                                      .64