How much does a Mobile Home Park cost to buy?

A typical Mobile Home Park sells for 4x to 9x annual revenue. With average revenue of $450K, expect to pay $1.8M to $4.0M.

How much does it cost to start a Mobile Home Park?

Startup costs range from $200K to $1.5M depending on location, equipment, and scale.

Physical

Mobile Home Park

Q: What are the profit margins for a Mobile Home Park?

The average profit margin for a Mobile Home Park is around 45%. Operating costs are lean: property taxes (1–3% of value), minimal staffing for small parks, maintenance reserves for infrastructure, and insurance. Profit margins of 40–60% on lot rent income are common. Utility billing passthroughs can be added to boost NOI.

The most recession-proof real estate on earth — tenants own their homes, you own the land

Mobile home parks (manufactured housing communities) collect monthly lot rent from residents who own their own homes but lease the land underneath. This creates an extraordinarily sticky tenant base — moving a manufactured home costs $5,000–$15,000, so residents almost never leave. Average lot rent hit $554/site/month in 2025 and continues rising faster than inflation. A 50-site park at $500/month generates $300K in gross revenue at margins of 40–60%. Private equity has been aggressively rolling up parks, making small and mid-sized parks prime acquisition targets for individual operators.

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Avg Revenue

$450K

Profit Margin

45%

Acquisition Multiple

4x - 9x

Startup Cost

$200K - $1.5M

Difficulty

3/5

How It Works

You buy the land, infrastructure (roads, utility connections, common areas), and collect monthly lot rent from each resident. Residents own and maintain their own homes — dramatically reducing your maintenance burden vs. apartment ownership. Revenue = (number of occupied sites) × (lot rent). Value-add plays include raising below-market rents to market, filling vacant lots, and adding utility billing (RUBS) for water/electricity passthrough. Parks are valued on a cap rate basis: NOI ÷ cap rate = value. A park generating $100K NOI at a 7% cap rate is worth ~$1.43M.

Revenue Range

Low End

$150K

Typical

$450K

High End

$1.2M

Pros

+Tenants almost never leave — moving a manufactured home costs $5K–$15K
+You don't maintain the homes, only the land and infrastructure
+Recession-proof — affordable housing demand is inelastic
+Strong value-add potential in parks with below-market rents

Cons

-High acquisition multiples (4–9× revenue) require significant capital
-Regulatory and political scrutiny is increasing as housing crisis intensifies
-Infrastructure repairs (water, sewer, electrical) can be expensive surprises
-Evictions are more complex than apartment evictions in most states

Best For

Real estate investors seeking passive income with inflation protection and minimal maintenance overhead

Operating Costs

Operating costs are lean: property taxes (1–3% of value), minimal staffing for small parks, maintenance reserves for infrastructure, and insurance. Profit margins of 40–60% on lot rent income are common. Utility billing passthroughs can be added to boost NOI.