How do appraisers view park owned home payments?

Hey everyone, just curious as to how most appraisers may look at the income from a park owned unit (not the lot rent) when coming to their valuations.

Any help is much appreciated.

If done correctly the income should be allocated between the site and the home. For example, if the total income is $1,000 per month and market rent for the site is $400, then $600 of income is allocated to the home. Income and expenses should be analyzed separately for both. FYI I’ve been appraising for almost 20 years.


Thanks Erik, is that to say that you would apple a cap rate the total income between the site and the unit? Separately that is.