{
  "slug": "mobile-home-park-lot-economics",
  "title": "Mobile Home Park Lot Economics Calculator",
  "heading": "Mobile Home Park Lot Economics Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/mobile-home-park-lot-economics",
  "summary": "Per-lot rent, expense ratio, and NOI economics for a manufactured housing community.",
  "description": "Mobile home park investing runs on lot rent economics, not unit rent economics, because in most parks the tenant owns their home and pays you only for the land, utilities hookup, and community infrastructure. This calculator computes per-lot monthly and annual revenue, applies a park-level expense ratio (mobile home parks typically run 30-45% expense ratios, notably lower than apartments' 40-50% because tenants own and maintain their own structures), and derives NOI, cap rate implied value, and per-lot value. The metric experienced park investors watch closest is occupied lots versus total pad count — vacant lots generate zero revenue but still cost money to maintain (mowing, road upkeep, taxes on the land), so occupancy percentage swings NOI dramatically more than a similar vacancy swing does in an apartment building, where at least some fixed per-unit costs don't apply to vacant pads in the same way. Park-owned homes (POH) that you rent out rather than just leasing the lot change this math substantially since you then take on repair and turnover costs like a normal landlord — separate that revenue stream from pure lot rent when running your numbers.",
  "formula": "Gross annual revenue = Occupied lots × monthly lot rent × 12; NOI = Gross revenue × (1 − expense ratio); Implied value = NOI ÷ cap rate; Per-lot value = Implied value ÷ total lots.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=mobile-home-park-lot-economics",
  "inputs": [
    {
      "id": "totalLots",
      "label": "Total lots/pads",
      "kind": "number",
      "hint": null,
      "default": 80,
      "unit": null,
      "min": 1,
      "max": null
    },
    {
      "id": "occupiedLots",
      "label": "Occupied lots",
      "kind": "number",
      "hint": null,
      "default": 68,
      "unit": null,
      "min": 0,
      "max": null
    },
    {
      "id": "lotRent",
      "label": "Monthly lot rent per pad",
      "kind": "number",
      "hint": null,
      "default": 425,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "expenseRatio",
      "label": "Operating expense ratio",
      "kind": "number",
      "hint": null,
      "default": 38,
      "unit": "%",
      "min": 10,
      "max": 70
    },
    {
      "id": "capRate",
      "label": "Market cap rate for parks",
      "kind": "number",
      "hint": null,
      "default": 7.5,
      "unit": "%",
      "min": 3,
      "max": 15
    }
  ],
  "outputs": [
    {
      "id": "noi",
      "label": "Annual NOI",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "impliedValue",
      "label": "Implied park value",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "perLotValue",
      "label": "Value per lot",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "grossAnnualRevenue",
      "label": "Gross annual lot rent revenue",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "occupancyPct",
      "label": "Occupancy rate",
      "format": "percent",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Total lots/pads: 80",
      "Occupied lots: 68",
      "Monthly lot rent per pad: 425 $",
      "Operating expense ratio: 38 %",
      "Market cap rate for parks: 7.5 %"
    ],
    "outputs": [
      "Annual NOI: $215,016",
      "Implied park value: $2,866,880",
      "Value per lot: $35,836",
      "Gross annual lot rent revenue: $346,800",
      "Occupancy rate: 85%"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter total lots/pads.",
      "Enter occupied lots.",
      "Enter monthly lot rent per pad ($).",
      "Enter operating expense ratio (%).",
      "Enter market cap rate for parks (%).",
      "Read your annual noi on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "totalLots": 48,
        "occupiedLots": 41,
        "lotRent": 255,
        "expenseRatio": 23,
        "capRate": 4.5
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "totalLots": 80,
        "occupiedLots": 68,
        "lotRent": 425,
        "expenseRatio": 38,
        "capRate": 7.5
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "totalLots": 128,
        "occupiedLots": 109,
        "lotRent": 680,
        "expenseRatio": 61,
        "capRate": 12
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why do parks trade at higher cap rates than apartments?",
      "a": "Manufactured housing communities historically traded at a premium cap rate (meaning cheaper relative to NOI) versus apartments due to perceived lower liquidity, tenant credit concerns, and management intensity, though institutional capital entering the space over the past decade has compressed cap rates in larger, well-located parks with city utilities."
    },
    {
      "q": "What's the biggest value-add lever in a park?",
      "a": "Filling vacant lots is usually the highest-return lever since each newly occupied lot drops almost entirely to NOI with minimal incremental expense, unlike apartment turns which carry real make-ready cost. Bringing lot rent up to market where it's been under-managed for years is the second most common lever, especially in parks bought from long-time mom-and-pop owners."
    },
    {
      "q": "Should I include park-owned home rental income in this calculator?",
      "a": "No — this tool models pure lot rent economics. If you own and rent out homes within the park (park-owned homes), model that revenue and its expenses — repairs, turnover, appliance replacement — separately, since it behaves like standard single-family rental economics, not lot rent economics."
    },
    {
      "q": "What expense ratio should I actually expect?",
      "a": "30-40% is typical for a park with city water/sewer and reasonable infrastructure condition; parks on private well/septic systems or with aging infrastructure can run 45%+ due to maintenance and potential capital call risk. Always get three years of trailing expense detail, not just a seller's pro forma, before underwriting."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/land-development-yield-on-cost",
    "https://www.revenuelab.fyi/toolbox/cap-rate-expansion-sensitivity",
    "https://www.revenuelab.fyi/toolbox/commercial-nnn-lease-escalations"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Mobile Home Park Lot Economics Calculator (https://www.revenuelab.fyi/toolbox/mobile-home-park-lot-economics)"
}