Mobile Home Park Cap Rate Calculator
Calculate the capitalization rate on a park acquisition or refi.
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What is a cap rate?
Cap rate (capitalization rate) is the most common metric for valuing income-producing real estate. It's annual NOI divided by purchase price, expressed as a percentage. A park sold for $1,000,000 producing $80,000 a year in NOI has an 8% cap rate.
What's a normal mobile home park cap rate in 2026?
Stabilized parks in tier-1 metros typically sell at 6.5–7.5% cap rates. Tier-2 markets cluster between 7.5% and 9%. Park-owned-home heavy assets are typically discounted 25–50 bps versus comparable tenant-owned-home parks because the income stream is considered less durable.
How is cap rate different from cash-on-cash return?
Cap rate ignores financing — it's an unlevered yield on the asset. Cash-on-cash return divides annual cash flow (after debt service) by your equity in the deal. A 7% cap rate park can produce 12%+ cash-on-cash with the right leverage, or negative cash-on-cash if you over-leverage at high rates.
Read more in our cap rate glossary entry or the 2026 MHP outlook.
This calculator is informational only and is not financial, legal, investment, or tax advice. Verify any decision with qualified counsel and a licensed professional.