Mobile Home Park Valuation Calculator (NOI, Cap Rate, Lot Rent Increase)

What is this mobile home park worth, and what is the next lot rent increase worth?

Type the lots, occupancy, lot rent and the expense lines from the T-12. It shows net operating income, the value at your cap rate, the cap rate the asking price implies, the loan's debt service coverage, and what a lot rent increase adds to value after the move-outs you expect, including how many lots can leave before you are no better off.

Planning arithmetic on numbers you type in. Not an appraisal, a loan quote or investment advice. The example figures are placeholders, not a real park.

1. The park today

Total lots (pads)

Occupied lots

Average lot rent ($/month)

Other income ($/month: utility reimbursement, fees, park-owned homes)

Management fee (% of income, even if you self-manage)

Reserves ($ per lot per year)

Operating expenses, one line each: label, annual $ (the amount goes after the last comma)

2. Price, rent plan and financing

Cap rate (%)

Asking price ($)

Lot rent increase ($/month)

Lots you expect to lose to the increase

Loan to value (%)

Interest rate (%)

Amortization (years)

Questions people ask

How do you value a mobile home park?

Most buyers capitalise net operating income: value = NOI divided by a cap rate. NOI is rent and other income minus operating expenses, including a management fee and reserves even if the owner self-manages. This tool does that arithmetic on the figures you type and also shows the cap rate implied by an asking price.

How much is a lot rent increase worth?

Each extra dollar of monthly lot rent across occupied lots adds twelve dollars a year of NOI, and the cap rate multiplies that into value. The tool nets off the lots you expect to lose to the increase and prints how many move-outs the park can absorb before NOI is no better than today.

What cap rate should I use?

That depends on market, lot count, utilities, tenant-owned versus park-owned homes and who the buyers are. The tool does not pick one: it prints a grid of values across cap rates one point either side of yours.

Should I use the seller's expenses?

Be careful. Seller statements often leave out management, reserves, payroll, or reassessed property tax. Type your own underwritten figures; the tool adds a management percentage and per-lot reserves so they are not forgotten.

What is DSCR here?

Debt service coverage ratio: NOI divided by the year's loan payments on the loan-to-value, rate and amortization you type. Lenders typically want a cushion above 1.0. The tool computes it from your numbers and knows nothing about any lender's actual terms.

Is this an appraisal or advice?

No. It is arithmetic on numbers you type in, with simplified expenses held fixed as occupancy changes. It is not an appraisal, a loan quote or investment advice; confirm with a broker, appraiser, lender and a local attorney, especially on rent-control and notice rules.

Not decided

The right cap rate, whether the seller's numbers are real, rent-control or notice-period rules where the park sits, utility billing and submetering rules, tenant-owned versus park-owned home mix, deferred maintenance and infrastructure cost, property tax reassessment on sale, closing costs, lender terms, and whether to buy at all. Expenses other than management are held fixed when occupancy changes.

Related tools: the cell tower lease buyout calculator, the ADU payback calculator and the BRRRR calculator for other real-estate deals.