Park Valuation

Park valuation is the estimate of what a mobile home park is worth in the current market. The dominant approach is the income approach: divide trailing-twelve-month NOI by the prevailing market cap rate for comparable parks. A park generating one million dollars in annual NOI in a 7 percent cap-rate market would value at approximately fourteen-point-three million dollars. Alternative approaches include the sales-comparison approach (comparing recent transactions of similar parks) and the cost approach (less common in MHP because the dirt is the asset, not the structures).