Mobile home park investing has quietly become one of the most talked-about strategies in commercial real estate. While many investors chase apartment buildings, single-family homes, or flashy commercial properties, veteran investors are looking at a different asset class: mobile home parks.
Why? Because in today’s market, defined by higher interest rates, rising housing costs, and a suffering economy, affordable housing options are in high demand across the United States.
If you’re evaluating whether mobile home park investments belong in your investment portfolio, this guide breaks it down in simple terms. We’ll cover the numbers, the risks, the benefits of a mobile home park investment, and what proper due diligence actually looks like.
As a side note, these investments are what has allowed me to obtain work optional status as a dentist.
Let’s start with the big picture.
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Why Mobile Home Park Investing Is Growing
The mobile home park industry is benefiting from long-term trends that are hard to ignore.
According to the U.S. Census Bureau, manufactured housing now accounts for roughly 6% of the total housing stock in the United States. Yet very few new mobile home parks are being built. Local jurisdiction restrictions, zoning barriers, and necessary permits make it difficult to develop new mobile home parks.
Think about it. City officials would much rather have a neighborhood or strip center built for tax revenue vs a mobile home park.
At the same time, the affordable housing crisis continues. The number of low-paying jobs has increased relative to wage growth, and many families simply cannot afford traditional homes. Baby boomers on fixed incomes are also downsizing, creating strong demand for lower-cost living options.
This creates a simple supply-and-demand story:
That combination makes mobile home park investing attractive in today’s market.
Breaking the Stereotype
Many people still picture the most stereotypical images of run-down trailer communities when they hear “trailer park.” But modern mobile home communities are very different.
Many parks today are clean, well-managed, and provide stable housing for long-term tenants. In fact, mobile homes are often owner-occupied. Residents own trailers and rent the land underneath them (i.e., lot rent).
This is an important business distinction.
In many mobile home park ownership models, you don’t own the individual units. You own the land, infrastructure, and common areas. Residents pay lot rent on a monthly basis.
Perdido Capital
This is our model at Peridido Capital. We buy parks with mainly tenant-owned homes to avoid any maintenance issues and simply collect lot rent.
That structure creates predictable cash flow and lower maintenance compared to traditional rental properties.
How Mobile Home Park Investing Makes Money
At its core, mobile home park investing is a commercial real estate business.
Income typically comes from:
Unlike an apartment unit where the landlord owns everything from roof to appliances, a park owner often avoids major maintenance on the homes themselves.
That means lower ongoing capital expenses.
When evaluating a park, investors focus on:
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Net income
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Cap rate
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Purchase price
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Market rate lot rents
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P&L documentation
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Land improvements needed
The goal is to ensure sufficient revenue to support operations, service debt, and generate a steady income stream.
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Why Demand Is So Strong
The affordable housing crisis is not slowing down.
Housing costs have risen dramatically over the past decade. At the same time, higher interest rates have made traditional homeownership less affordable.
Mobile home communities provide one of the lowest-cost housing options available without government subsidies. That’s a good reason institutional investors and private equity firms have entered the space.
Strong demand also increases property values over the long term. When demand rises and supply stays limited, parks often experience steady rent growth.
Even during a suffering economy, demand for affordable housing options tends to remain stable. That’s one reason some investors see mobile home park investments as more resilient than other real estate sectors.
Comparing Mobile Home Parks to Other Real Estate
Let’s compare mobile home park investing to single-family homes and apartment buildings.
Single-family homes require constant turnover management. Apartment buildings involve heavy maintenance, higher staffing needs, and higher overall cost structures.
Mobile home parks often operate differently.
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Residents typically stay longer
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Moving a home is expensive ($5-10k+)
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Turnover is lower
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Maintenance is reduced when residents own trailers
That can translate into more stable cash flow and better return metrics when managed correctly.
This doesn’t mean it’s effortless. It still requires a solid business plan and a ton of homework before closing.
But compared to other commercial properties, it can be a more operationally efficient model.
What to Look for When Buying a Park
Buying an already operational mobile home park is usually safer than developing from scratch. New operator mistakes can destroy returns quickly.
Due diligence should include reviewing:
You also need to evaluate the local jurisdiction. Some cities are landlord-friendly. Others impose rent control or heavy regulatory burdens.
Never skip the financial matter analysis. Verify net profit and confirm the numbers match bank statements.
The Role of Cap Rate and Purchase Price
Mobile home park investing is heavily influenced by cap rate.
Cap rate equals net income divided by purchase price. In today’s market, cap rates vary widely depending on location and park quality.
Parks in strong metro areas may trade at lower cap rates due to strong demand and perceived stability. Parks in rural areas may offer higher cap rates but potentially higher operational risk.
Your target cap rate should align with your investment portfolio goals and risk tolerance.
Related: What Is A Good Cap Rate For Rental Property?
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Owner Financing and Creative Structuring
One interesting feature in this asset class is owner financing.
Some owners of each park are aging operators ready to exit. They may provide partial seller financing. This can reduce upfront capital needs and improve returns.
In today’s market with higher interest rates, creative structuring can make a significant difference in overall cost and net income.
Benefits of a Mobile Home Park Investment
There are several potential benefits:
First, strong cash flow. When a lot of homes are occupied, and rents are near market rate, parks can produce reliable monthly cash flow.
Second, less competition compared to apartment buildings. Many investors still overlook this niche market.
Third, recession resilience. Affordable housing remains necessary regardless of economic cycles.
Fourth, land appreciation. Even if homes depreciate, the land often appreciates over the long term.
Fifth, passive income potential. With the right management team, this can become a lucrative investment outlet that doesn’t require daily involvement.
Risks and Realities
Mobile home park investing is not risk-free.
Common risks include:
Additionally, past performance does not guarantee future results. Always review such information carefully.
A new operator without experience can damage occupancy and cash flow quickly. That’s why best practices and experienced management matter.
Market Conditions in 2026
As of 2026, housing affordability remains a national issue. Mortgage rates are still elevated compared to historic lows. Construction costs remain high, limiting development of new mobile home parks.
At the same time, institutional investors continue acquiring stabilized assets, which pushes valuations up in prime markets.
In secondary and tertiary markets, opportunities still exist for hands-on investors willing to do the work.
Active Ownership vs Passive Investing
There are two primary ways to invest:
You can own mobile home park assets directly. This requires operational involvement, financing, and ongoing oversight.
Or you can partner with experienced operators through syndications or private funds. That approach offers passive income potential without day-to-day work.
For busy professionals—such as someone running a medical practice—passive investing may be the best option.
Long-Term Strategy
The best way to approach mobile home park investing is with a long-term mindset.
Focus on:
Avoid aggressive tactics that create tenant instability. Long-term tenants create stable revenue.
Over time, modest rent growth combined with loan amortization can significantly increase net profit and equity value.
Bottom Line
Mobile home park investing has evolved from an overlooked niche to a respected segment of commercial real estate.
Strong demand, limited supply, and the ongoing affordable housing crisis create tailwinds for this asset class. When approached with careful due diligence, realistic underwriting, and a solid business plan, it can be a great investment.
It is not a get-rich-quick scheme. It requires homework, financial discipline, and respect for residents.
But for investors looking to diversify beyond single-family homes, apartment buildings, and traditional rental property models, mobile home park investments offer a unique combination of steady income stream, potential capital gains, and long-term stability.
As Warren Buffett often emphasizes, invest in businesses with durable demand. Affordable housing is not going away.
If done properly, mobile home park investing can be both a profitable investment outlet and a meaningful way to provide housing in today’s economy.
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