How to determine value on RV lots in a MHP

Hello, I’m looking at a 40 lot MHP park with 8 additional RV lots in a large MSA. The RV lots are rented year around but how do I evaluate the RV lots?

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If the RV’s are Park Models then I would use the same formula as for MH. Park models are not easily moved and are a close substitute for a MH unit (12 x 30 style not the Tag along style).

If the homes are Motorhomes or trailers then I would use a higher cap rate as they can easily move out.

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Yes, unfortunately they are actual RV’s. Thank you.

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I might also ask if they are on the site with an annual lease agreement or just month to month?


Motor homes and Fifth Wheel style trailers can move out with minimal notice. Even if they have a long term lease they can just drive the thing off your property. I would expect a much higher cap rate on the income.

Only way to protect against that is to have a deposit and require 30 or 60 days notice of intent to vacate clause in lease. If they bail you get to keep the deposit.

Thank you for the information!