Value a mobile home park using lot rent, occupied pads, and cap rate. Calculate NOI, per-pad pricing, and compare community-owned vs. tenant-owned homes.
Mobile home parks (MHPs) represent one of the most compelling sectors in commercial real estate. They offer high cap rates, recession resilience, and a natural barrier to new supply (zoning restrictions make building new parks nearly impossible in most markets). Valuation follows the income approach: lot rent times occupied pads times 12 months, minus expenses, divided by the cap rate.
This calculator computes MHP value using the core metrics: total pads, occupancy, lot rent, and operating expenses. It differentiates between park-owned homes (POH) and tenant-owned homes (TOH), as parks with mostly tenant-owned homes are valued more favorably because the park collects rent without bearing home repair costs.
Whether you're evaluating an acquisition, modeling a lot rent increase strategy, or estimating value after filling vacant pads, this tool gives you a clear picture of MHP economics.
Homebuyers, investors, and real-estate professionals all benefit from precise mobile home park valuation figures when evaluating properties, negotiating deals, or planning long-term investment strategies. Save this calculator and revisit it whenever market conditions or your financial situation changes.
Mobile home park valuation has unique factors: lot rent vs. home rent, POH vs. TOH economics, and lot fill strategies. This calculator handles these nuances so you can accurately value parks and model value-add scenarios. Instant recalculation lets you compare scenarios side by side, so every buying, selling, or investment decision is grounded in solid financial analysis.
Gross Lot Income = Occupied Pads × Lot Rent × 12 Total Income = Lot Income + Other Income NOI = Total Income − Operating Expenses Park Value = NOI / Cap Rate Price per Pad = Value / Total Pads
Result: Value = $3,397,500 | Price per pad = $42,469
Lot income: 68 occupied pads × $450 × 12 = $367,200. Plus $24,000 other income = $391,200 total. NOI = $391,200 − $160,000 = $231,200. Waiting, $367,200 + $24,000 = $391,200. $391,200 − $160,000 = $231,200. Value = $231,200 / 0.08 = $2,890,000. Price per pad = $36,125.
Mobile home parks benefit from a unique supply-demand dynamic: demand for affordable housing is growing while new park supply is effectively zero. Municipalities across America have stopped approving new parks, making existing parks increasingly valuable as irreplaceable assets.
The three primary value-add levers in MHPs are: raising below-market lot rents (many parks charge $200–300 when market supports $400–500), filling vacant pads (buying used homes and placing them or offering move-in incentives), and converting POH to TOH (selling park-owned homes to tenants to reduce expenses). Each lever directly increases NOI and value.
MHP operating expenses are remarkably low compared to other asset classes. There are no roofs to replace, no HVAC systems to maintain, and no interior finishes to refresh. The primary expenses are property taxes, insurance, management, water/sewer, trash, and lot maintenance. Well-run parks operate at 30–40% expense ratios.
MHPs are valued using the income approach: NOI / Cap Rate. The primary income source is lot rent (the fee tenants pay for the land their home sits on). Unlike apartments, the park typically doesn't own the homes, making the income model simpler and expenses lower.
Lot rent is the monthly fee a tenant pays for the right to place their mobile home on a pad in the park. It covers land use, access to utilities, and community amenities. Lot rents range from $200/month in rural markets to $1,000+ in desirable locations. It's the park's primary revenue source.
MHP cap rates range from 6–7% for institutional-quality parks with 100+ pads in strong markets to 8–12% for smaller parks in secondary markets. Infrastructure condition, lot rent relative to market, and TOH vs. POH ratio all influence cap rate.
Moving a mobile home costs $3,000–10,000 and often damages the home. Many older homes cannot be moved at all. This creates a captive customer base with very low turnover (2–3% annually), making lot rent income extremely stable and predictable.
TOH (tenant-owned homes) means residents own their home and rent the lot. The park has no home maintenance costs. POH (park-owned homes) means the park owns the homes and rents them out. POH generates higher revenue but involves home maintenance, higher vacancy risk, and lower valuation multiples.
MHPs offer several advantages: affordable housing demand is growing, new supply is nearly impossible to build (zoning restrictions), tenants are sticky (moving costs are prohibitive), expense ratios are low, and cap rates are higher than apartments. They're considered one of the most recession-resistant asset classes.