3 Things Every MHP Sponsor Should Consider When Buying a Mobile Home Park

Investing in mobile home parks (MHPs) can be one of the most resilient and rewarding real estate strategies—but not all MHPs are created equal. The right acquisition can provide stable cash flow, long-term appreciation, and capture the steady demand for affordable housing. The wrong one can lead to persistent vacancy, poor quality, and related challenges that are nearly impossible to overcome.

At 52TEN, we’ve spent years refining our approach to mobile home park investments. Based on our experience, three of the top things MHP investors should carefully consider when buying a mobile home park are the quality of the property, the location, and the regulatory environment.

1. Quality of the Property

Mobile home parks are rated on a scale of one to five stars. 1-star parks are where the negative stereotype comes from and are commonly considered “trailer parks”. At the other end of the spectrum, 5-star parks are essentially luxury communities, with gated access, top-notch amenities, and brand new high-quality manufactured homes.

In our view, the sweet spot is in the middle — around 3 stars. 3-star parks typically have these characteristics:

• Paved streets and paved parking surfaces
• City provided utilities (or good quality private utilities)
• Filled with relatively modern homes (not older vintage homes from the 60s and 70s)
• Will qualify for agency debt

These communities strike the right balance between affordability and quality. They’re desirable places to live, yet not priced beyond reach. Unlike luxury parks, they offer good value for residents. Unlike low-end parks, they attract stable, long-term residents who are seeking a newer vintage home. Also, in many cases, 3 and 4-star parks are simply aged 5-star parks, so we tend to seek opportunities in this middle tier.

2. Location of the Property

Every real estate investor has heard: location, location, location. With mobile home parks, it’s not just about what city the park is in—it’s about how the market supports affordable housing demand.

When evaluating location, one of the biggest misconceptions is that the market needs to have a low cost of living as well, which would result in low median home values. Conversely, we seek parks in markets where the median home value is higher, driving greater demand for affordable housing.

For clarity, a brand-new home in a mobile home park costs roughly $100,000. In a market where traditional homes are inexpensive (like $200,000) there is simply not enough spread between the monthly cost for a traditional mortgage compared to the combined cost of a mobile home payment plus lot rent, so the incentive to choose a mobile home decreases. For higher success, the spread should be larger. For example, in a market where traditional homes are $300,000 or more, a mortgage payment will be significantly higher than the combined cost of a $100,000 mobile home payment plus lot rent. The more expensive traditional homes are, the greater the demand for mobile homes increases.

But affordability is only part of the demand equation. A strong location also means:

• Population growth
• Positive job creation

In short, we seek parks in markets where people want to live, but can’t find reasonably priced housing. It’s this constant demand for affordability that makes mobile home parks such a resilient investment.

3. Regulatory Environment

Finally, no acquisition decision is complete without understanding the regulatory environment in the market.

In some states—particularly those with strict rent control like California or the Northeast—mobile home parks that have been privately owned for decades may be locked into artificially low lot rent. In these markets, we would not be able to align lot rents with the market, no matter how much we improve the property.

We pride ourselves on being responsible stewards of our communities and are not in the business of predatory rent increases. However, we do need the flexibility to raise rents modestly to cover the cost of improving the property, plus the ever-increasing operating costs. Overly restrictive environments that limit this flexibility can turn an otherwise promising MHP into a financial dead end.

For that reason, we focus on markets with reasonable, balanced regulatory frameworks—places where we can both protect our residents and ensure the long-term health of the investment.

Final Thoughts

Buying a mobile home park isn’t just about chasing yield—it’s about making smart, disciplined decisions. Three of the most important factors to consider are:

1. Quality of the property – targeting the right tier (3-star parks) that balance affordability and desirability.
2. Location of the property – ensuring the market has high enough home values, strong job growth, and persistent demand for affordable housing.
3. Regulatory environment – avoiding restrictive rent controls that limit the ability to responsibly manage and improve communities.

When you keep these principles in mind, you not only position yourself for a profitable MHP investment, but you also ensure the ability to provide residents with an improved quality of living for years to come.

This content is the perspective of the author and is not intended to be relied upon as a forecast, recommendation or investment advice, and is not an offer or solicitation to buy any securities or to adopt any investment strategy. The information and opinions contained in this content are derived from experience, historic data, and other sources deemed to be reliable, are as of the date of this content, and may change as subsequent conditions vary.