The victim, who is 48-years-old, is listed in stable condition. His name has not been released.
Gregory McClain, 22, is accused of stabbing the fellow resident. The suspect is in custody at Holly Springs police headquarters. McClain is charged with attemped murder.
Holly Springs police have handled 17 calls from the residence since the group home opened in December.
Authorities say the calls included 911 hang-ups, missing person reports and suspicious activity. Saturday's incident was the first involving an assault.
Police say the group home has state authority to house up to six residents.
The police department has filed multiple complaints with the state Department of Health and Human Services contending inadequate supervision and management at the group home.