How to Value a Mobile Home Park
Valuing a mobile home park requires more than applying a simple price-per-pad estimate. While pad count matters, the real value of the property is tied to its income, expenses, infrastructure, location, occupancy, and future growth potential. A well-run park with stable collections and strong utilities can be far more valuable than a larger park with poor records and major deferred maintenance. The most common valuation method is the income approach. Investors begin by calculating net operating income, which is the property’s income after normal operating expenses but before debt service and income taxes. Income may include lot rent, park-owned home rent, utility reimbursements, storage fees, late fees, laundry income, or other recurring revenue. Expenses may include repairs, payroll, insurance, property taxes, utilities, management, licenses, legal costs, and maintenance reserves. A buyer asking How do you value a mobile home park? should start by verifying the quality of the incom...