Exploring the Business Dynamics of Mobile Home Parks: Tenant-Owned vs. Park-Owned Homes and the Section 8 Rental Program

In mobile home parks, you have park owned homes and you have tenant owned homes. Which means that like, the tenant owns the mobile home on the lot and they pay that mobile home park owner lot rent. Park owned homes means the owner owns both the mobile home and the lot. Most large institutional buyers only want tenant own homes because they want that mailbox money. They don’t want to deal with maintenance and repairs and all of that stuff. However, park own homes qualify for the Section 8 rental program where the government direct deposits your rent the first of every month. An average lot rent for a mobile home park, not an RV park in the the city and county that I’m in is like 250 bucks, maybe $300. However, on the Section 8 program, I can get 12 hundred dollars a month for a park owned home. I rent those out through the Section 8 program and they’re essentially affordable housing. So it’s a whole different business model to rent those on the Section 8 program.