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Mobile Home Park Cap Rates, Explained
A cap rate, short for capitalization rate, is how most buyers turn a mobile home park’s income into a price. It is the park’s yearly net operating income divided by the price. A lower cap rate means a higher price for the same income. Here is how the math works, why two buyers can apply very different cap rates to the same park, and what you can do to improve the number buyers use.
- The formula, shown with an example
- What moves a park’s cap rate
- No broker commission
- Written offer within 24 hours
- Close in as little as 14 to 30 days
- A real offer on your park
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Park owners trying to price their park
The formula
Cap rate equals net operating income divided by price. Turned around, price equals net operating income divided by the cap rate. Net operating income, or NOI, is the money the park actually collects in a year, mostly lot rent plus any home rent and fees, minus the costs of running it: property taxes, insurance, repairs and maintenance, management, and utilities the park pays and does not bill back. Mortgage payments and depreciation are not part of NOI.
Here is an illustrative example with hypothetical numbers: a park with $120,000 of NOI is worth $1,500,000 to a buyer using an 8% cap rate, and $1,200,000 to a buyer using a 10% cap rate. Two percentage points made a $300,000 difference, which is why the cap rate and the NOI behind it deserve careful attention.
Why we don’t quote an average cap rate
You will see published averages for mobile home park cap rates, and they differ by source, by region, by park size and by the month they were measured, because they move with interest rates and investor demand. An average for large, institutional-quality communities says little about a 25-site park with private septic in a rural county.
For your park, the relevant cap rates are those on recent sales of similar parks in your area, with similar size, utilities and occupancy. A park broker or appraiser can pull those, and our page on what your park is worth covers the other approaches buyers use.
What pushes a park’s cap rate up or down
Buyers apply lower cap rates, meaning higher prices, to parks they see as lower risk: public water and sewer, high occupancy, mostly resident-owned homes, steady rent collections, good roads and utility lines, a growing area and records that hold up. They apply higher cap rates to parks with private wells and septic, many vacant sites, a lot of park-owned or abandoned homes, deferred maintenance, zoning questions or informal books.
Size and financing matter too. Larger parks attract more buyers and cheaper loans, so they often trade at lower cap rates than small parks. When interest rates rise, buyers generally need higher cap rates to make the numbers work, and prices soften.
How buyers check your NOI
Buyers do not take the seller’s NOI at face value. They rebuild it from the rent roll and bank deposits, use actual collections rather than scheduled rent, and add costs an owner-operator may not pay out of pocket, such as professional management and a reserve for repairs. They often adjust for property taxes being reassessed after a sale.
That is why the NOI a buyer uses is frequently lower than the one an owner quotes, and why clean records pay off. Raising lot rents toward market, billing back water and sewer where allowed, filling vacant sites and fixing obvious problems before a sale can all raise the NOI a buyer will credit you for.
Getting a real number for your park
A cap rate is only as useful as the NOI and the comparable sales behind it. If you would rather skip the theory, we will review your rent roll, expenses and condition ourselves and send a written offer within 24 hours, and we are happy to walk you through how we got there.
There is no broker commission, we pay the closing costs, and we can close in as little as 14 to 30 days.
Why park owners ask us for a number
Clear math
We explain how we priced your park.
Actual numbers
Based on your rent roll and expenses.
Any size
Small and private-utility parks considered.
No commission
No broker fee. We pay closing costs.
Fast
Written offer within 24 hours.
No obligation
Use it as a benchmark.
Getting your offer, step by step
Three steps, no obligation at any point, and no cost to you at any stage.
One call or one form
Tell us the address or APN and the rough size. You do not need a survey, a plat or the tax bill in front of you — we look all of that up.
We value it properly
We research the parcel ourselves, at our cost, before we quote. We price it off recent sales of similar acreage and adjust for access, soil, flood mapping, timber and shape. No cost to you, no commitment.
Written offer, your decision
You have our number in writing within 24 hours. If you take it, a licensed title company closes it and we cover the standard closing costs — typically 14 to 30 days.
Selling to us vs. listing it
Both are legitimate. Listing can bring a higher gross price if you have time, the tract is easy to finance and you can carry the taxes while it sits. Here is the honest comparison.
| Selling to Dreamify | Listing with an agent | |
|---|---|---|
| Who you are dealing with | A direct cash buyer — we are the ones purchasing | An agent marketing it to someone else |
| Commission | None | Typically 6–10% on land |
| Closing costs | We cover them | Usually split or seller-paid |
| Repairs, survey, clean-up | Not your problem | Often requested by retail buyers |
| Financing risk | None — cash | Land loans fall through often |
| Timeline | As little as 14 to 30 days once title work is back | Land can sit on the market for months |
Land we buy
Land we buy
- Vacant, raw and bare land
- Inherited and heir property, including multiple owners
- Land with back taxes or a delinquent tax bill
- Out-of-state and absentee-owned parcels
- Farm, timber and hunting acreage
- Small residential lots and infill parcels
- Landlocked tracts and parcels with access questions
- Land that failed a perc test
- Tracts tied up in an estate or probate
- Property you inherited and have never seen
- Mobile home parks and RV parks
- Self-storage facilities — considered case by case
What we don’t buy
- Houses and other residential buildings
- Land you do not have the authority to sell
- Parcels where a co-owner has not agreed to sell
- Property already under contract with someone else
If we are not the right buyer for your parcel we will say so on the first call rather than waste your time.
We buy with our own money — here is what we have closed
We are a principal buyer using our own capital, not a lead broker collecting details to sell on. A sample of tracts we have bought and closed:
| Tract | Where we closed it |
|---|---|
| 5.05 acres | Dawson County, Georgia |
| 32.3 acres | Perquimans County, North Carolina |
| 72 acres | Pike County, Mississippi |
| 10.7 acres | Morgan County, Georgia |
| 6.24 acres | Jasper County, Georgia |
| 8.5 acres | Pike County, Mississippi |
A sample of tracts we have bought and closed ourselves. We are a principal buyer, not a broker — every one of these was purchased with our own funds through a licensed closing agent.
What sellers say
Every quote below is a real, verified Google review of Dreamify Properties — 4.9 stars across 14 reviews.
“Dreamify made a fair offer on our property in Alabama… Over the past couple years I’ve had a hundred texts and phone calls from land companies wanting to buy — from low-balling to wanting to put you under contract for 6 months and walk away on the last day. Dreamify followed through on every part of the deal.”
“I had a great experience working with John and Dreamify on the marketing and sale of land in Georgia. John was reasonable, fair, and thorough throughout the transaction, and was very pleasant to work with.”
Questions we get asked
What is a cap rate on a mobile home park?
Net operating income divided by price. It is how buyers turn a park’s income into a value.
Is a higher cap rate better for the seller?
No. For the same income, a higher cap rate means a lower price.
What is a good cap rate for a mobile home park?
It depends on the park’s size, utilities, occupancy and location; compare recent local sales.
How can I lower my park’s cap rate?
Reduce risk: fill sites, document income, bill back utilities where allowed and fix deferred maintenance.
How fast can you close?
We give a written offer within 24 hours and can close in as little as 14 to 30 days. If your timeline is longer, we close on the date that suits you.
What does it cost me to sell to you?
Nothing. No commission, no closing costs, no document fees. We buy with our own capital and pay the closing costs ourselves.
Find out what your park is worth to a cash buyer
Send the parcel details and we’ll research the property, answer your questions, and put a clear no-obligation offer in writing within 24 hours.