Mobile Home Park Cap Rate Calculator
Mobile Home Parks (MHPs) are one of the highest-cap, most fragmented commercial real estate asset classes. Tenant-owned-home parks (TOH) have minimal landlord capex — just lot rent and infrastructure — making them mailbox-money investments.
Why MHPs Trade At Higher Caps
Banks limit MHP financing, fewer institutional buyers, perceived stigma. Result: 7-9% caps vs 5-6% for comparable multifamily. The cap differential is the alpha — operationally MHPs cash flow similarly to apartments with less capex.
Tenant-Owned vs Park-Owned Homes
TOH parks: residents own homes, pay lot rent only. Landlord maintains infrastructure (roads, utilities). Park-owned (POH): landlord owns and maintains homes — closer to apartment economics with higher capex. TOH is the preferred MHP investment structure.
Value-Add Plays In MHPs
Three highest-leverage: mark lot rent to market (mom-and-pop owners often charge $200-300 below market), submeter water and pass through (saves 8-15% of revenue), and fill vacant lots through home placement programs. Each lever can compound NOI 15-30%.
Source: Marcus & Millichap MHP Research, Sun Communities investor presentations. Last updated: May 2026.