Mobile Home Park Calculator

Analyze mobile home park deals instantly. Enter lot rent, pad count, and expenses to calculate NOI, cap rate, and cash-on-cash return. The industry-standard tool for MHP investors.

Deal Parameters

$
$
%
%
$

Investment Metrics

$214,200

Gross Annual Income

$139,230

Net Operating Income

11.60%

Cap Rate

46.41%

Cash-on-Cash Return

$20,000

Price per Lot

$104

Expense per Lot / mo

MHP Insight

Cap rate above 10% — strong yield. Verify infrastructure condition and utility type before committing.

How to Evaluate a Mobile Home Park Investment

Mobile home parks (MHPs) are one of the most attractive asset classes in commercial real estate. With low tenant turnover, minimal capital expenditure requirements, and strong demand for affordable housing, MHPs consistently deliver cap rates of 7% to 11% — well above most apartment investments.

The key metric is lot rent — the monthly fee each tenant pays for the pad their home sits on. Unlike apartments, park owners typically don't own the homes themselves, which dramatically reduces maintenance responsibility. The industry standard expense ratio is 30% for parks on public (city) water and sewer, and 40% for parks with private utilities.

When analyzing a deal, focus on price per lot (typically $20,000 to $50,000 for stabilized parks), occupancy rate (target 85%+), and the spread between current lot rents and market rents. Parks with below-market rents represent value-add opportunities where you can increase NOI through gradual rent increases.

MHP Expense Ratio Guidelines

Public water + public sewer

Lowest expense — city handles utilities

30%

Public water + private sewer

Budget for septic maintenance

35%

Private well + private sewer

Highest expense — plan for well/septic repairs

40%

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Mobile Home Park Investment FAQ

How do you value a mobile home park?

Mobile home parks are valued using the income approach: NOI divided by cap rate. NOI is lot rent income minus operating expenses. Common cap rates range from 7% to 11%.

What is a good cap rate for a mobile home park?

MHP cap rates range from 7% to 11%. Parks on public utilities in strong markets trade at 7% to 8%. Private utility parks in secondary markets trade at 9% to 11%.

What is the average expense ratio?

The rule of thumb is 30% for parks on public utilities and 40% for parks with private utilities. Well-managed parks with tenant-paid utilities can achieve 25%.

How do you calculate NOI for a mobile home park?

NOI = (Monthly Lot Rent × Lots × 12 × Occupancy) × (1 − Expense Ratio). A 50-lot park at $400/mo, 90% occupancy, 35% expense ratio = $140,400 NOI.