Rauhes Haus was founded at Horn (now a suburb of Hamburg) by the 25-year-old theologian Johann Hinrich Wichern on 12 September 1833 who for a long time was head administrator at the institution.
It was supported by voluntary contributions, profits arising from the productive enterprises it carried on, and fees from the richer pupils.
The educational department was in the hands of assistants, who also took part in the instruction of the institution, in order to prepare themselves for the work of the Home Mission in other localities.
The whole staff of assistants consisted of young men of 20 to 29 years of age who were formed into a kind of society (Brüderschaft).
The house is owned by the foundation Stiftung Das Rauhe Haus of the German Diakonisches Werk, the charitable work organization of many Protestant churches in Germany.