Mobile Home Park Cap Rates: What Manufactured Housing Communities Trade At
Mobile home park cap rates averaged about 5.9% in Northmarq data, with REIT-implied rates near 5.4%. Why lot rent parks trade so low and how to value one.
By the CapRateCalculator.co team
Mobile home park cap rates average about 5.9%. That is Northmarq’s figure for the first half of 2025, the most recent private-market average it has published, and it compressed about 40 basis points against late 2024. Capright estimates the implied cap rate on publicly traded manufactured housing REITs at 5.4% as of mid-2026, up slightly from 5.3% at the end of 2025.
Mobile home park cap rate figures
| Measure | Cap rate | Source |
|---|---|---|
| Private market average, 1H 2025 | 5.9% | Northmarq |
| Implied REIT cap rate, June 2026 | 5.4% | Capright |
| Implied REIT cap rate, year-end 2025 | 5.3% | Capright |
The REIT number is an implied cap rate: what the stock market is paying for the REITs’ parks. Those portfolios are larger and better located than most private parks, so expect a typical small park to trade above it.
Value at mobile home park cap rates
| Cap rate | Value of $400,000 NOI |
|---|---|
| 5.4% | $7,407,000 |
| 5.9% | $6,780,000 |
| 6.5% | $6,154,000 |
Why parks trade at apartment-level cap rates
The resident owns the home and rents the lot. Moving a manufactured home costs thousands, so most residents stay for years and lot rent behaves more like a ground rent than an apartment rent. Zoning makes new parks rare, which protects existing ones from competition. That combination lets parks trade at cap rates close to multifamily even though the buildings belong to someone else.
What raises a park’s cap rate
Park-owned homes. Renting homes as well as lots brings back apartment-style vacancy and repairs.
Utilities. Parks on private wells, septic or a master-metered system the owner pays carry more risk and cost. Submetering and billing residents back lowers the expense line.
Size and location. Small rural parks have a thin buyer pool. Larger parks near jobs attract institutional buyers.
Lot rent below market. A park far below local lot rents has upside, but buyers pay for current NOI. The stabilized cap rate guide shows how to separate current yield from what the park could earn.
For the full comparison, see cap rates by property type.
Sources: Northmarq, Manufactured housing communities poised for growth in 2026; Capright market update, September 2026.
Frequently asked questions
What is a good cap rate for a mobile home park?
Northmarq's latest private-market figure, from the first half of 2025, is an average of 5.9%. Large, well-run parks in growing markets trade below that. Small parks with park-owned homes, private wells or septic systems, or weak locations trade well above it.
Why are mobile home park cap rates so low?
Residents usually own their homes and rent only the lot. Moving a manufactured home costs thousands of dollars, so turnover is very low and lot rent is steady. Few new parks get built, which limits competition. Buyers accept a lower yield for income that reliable.
Do park-owned homes change the cap rate?
Yes. Rent from park-owned homes carries more vacancy, repairs and turnover than lot rent. Buyers often value lot rent and park-owned home income separately, or apply a higher cap rate to a park with many park-owned homes.