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.