© 2016 Fannie Mae. Trademarks of Fannie Mae. 6.16.2016 1 of 6

Multifamily Market Commentary – June 2016 

Manufactured Housing Communities – A Closer Look

What is a Manufactured Housing Community (MHC)? MHCs are sometimes referred to as mobile home parks or land-lease 

communities. MHCs rent land, known as pads, to owners of manufactured homes for a monthly fee. In addition, the park 

owner typically provides sewer, water, and electrical hookups for the homes and maintains the roads and other common 

areas, including landscaping. Park owners can also own a stock of existing manufactured homes that are available for rent.

MHCs Are Located in Every State in the U.S.

While there may be as many as 50,000 MHCs in the United States, third-party MHC data vendor Datacomp/JLT has 

identified an estimated 37,300 as of the end of April 2016. MHCs can be found in every state, but slightly more than half of 

them are concentrated in just 10. 

As seen in the map below, California has the highest number of MHCs – with 3,300 – an 8.8 percent share of the nation’s 

total. Florida has the second-highest concentration with 2,800, a 7.5 percent share, followed by North Carolina with 2,700, 

a 7.2 percent share, and Texas with 2,500, a 6.7 percent share. Ohio rounds out the top five with 2,200, a 5.9 percent share. 

The vast majority of states have far fewer communities. Just under half of all states have fewer than 500 communities and 

another 13 states have more than 500 but less than 1,000. 

Source: Datacomp/JLT

Manufactured Housing Communities in Continental U.S.

Number of Communities by State (estimated)

Note: Excludes Alaska with 67 MHC.
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Counties with Concentrations of 

MHCs

A few states have counties with 

particularly high concentrations of 

MHCs. For instance, in Arizona, 

just three counties – Maricopa, 

Pina, and Pinal – have more than

700 MHC properties, according to 

third-party multifamily data vendor 

CoStar Group, Inc. In California, 

Los Angeles, Riverside, and San 

Bernardino counties together have 

an estimated 800 MHC properties.

Encompassing both Riverside and 

San Bernardino, the Inland Empire 

has relatively less expensive land,

which makes it a more viable 

location for MHCs.

States with Even Distributions of MHCs

In contrast to California and Arizona, which have a few counties with heavy concentrations of MHCs, the MHC distribution 

is far more even in some other states. For instance, as shown in the maps below, there are MHCs in nearly every county in 

Florida. Many Texas counties have MHCs, but there is a greater concentration in East Texas.

MHCs in the Inland Empire and Los Angeles County

Florida MHCs Texas MHCs

Source: CoStar Group, Inc.

Source: CoStar Group, Inc.
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Two Primary Types of Manufactured Housing Communities

MHCs can be for all ages or age-restricted. Age-restricted communities serve retirees who are generally over the age of 

55. Based on the communities Datacomp/JLT has been able to categorize, four states have a significant number of MHCs 

geared toward retirees: Florida with just over 900, California with just under 800, Arizona with just over 300, and Washington

with just under 300.

Smaller MHCs More Prevalent 

Most MHCs where Datacomp/JLT has identified the pad count have 

between five and 299 pads. As shown in the adjacent chart, just over 

4,000 MHCs have between 25 and 49 pads. Close to 8,500 MHCs 

have between 50 and 149 pads. Fewer communities – slightly more 

than 1,700 – have more than 300 pads. 

Interestingly, there are communities with fewer than five pads. 

Datacomp/JLT has identified about 100 MHCs that have only one to 

four pads. Further, slightly more than 3,000 MHCs have only five to 

24 pads. Some of these smaller communities may be on a private 

owner’s property and may not have access to municipal utilities or 

water and sewer systems. 

Few New MHCs

As shown in the chart below, few new MHCs are under construction. 

According to CoStar, virtually no MHCs have been constructed over 

the past five years. That trend appears to be continuing into 2016. 

At the end of the year’s first quarter, there were just three MHCs –

with an estimated 895 pads – under construction. That is far below the estimated historical annual average of 3,500 pads.

Of the three MHCs currently under construction, one is located in Amegard, ND, with an estimated 48 pads priced at $25,000 

per pad. The second project is in Missoula, MT, with 766 pads, and the third is in Gainesville, FL, with 81 pads. 

Construction in Manufactured Housing Communities by Number of Pads

Source: CoStar Group, Inc.

Distribution of MHCs by Number of Pads
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MHC Stock Getting Older Distribution of MHCs by Year Built

With little new inventory coming online over the past 15 

years, the MHC stock is aging. As shown in the chart to the 

right, most MHCs – 68 percent – were built prior to 1980.

The highest proportion of MHCs – an estimated 35 percent 

– were constructed between 1970 and 1979. Another 24 

percent were constructed even earlier, between 1960 and 

1969. Only 14 percent of MHCs have been built since 1990, 

likely due in part to rising land costs. 

MHC Sales Transactions Increasing

While MHC sales data is limited, Datacomp/JLT reported an 

estimated 1,100 sales transactions resulting in a change in 

ownership in 2015. 

Third-party data vendor Real Capital Analytics also provides additional insights into MHC transactions, but only for those

valued at $2.5 million or higher. The annual volume of MHC transactions appears to be picking up. After averaging $2.7 

billion on 269 properties annually from 2005 to 2012, the volume of transactions averaged $5.5 billion on 307 properties 

annually from 2013 to 2015. As shown in the table below, in 2015 alone, MHC sales totaled an estimated $5.6 billion on 

533 properties, representing 114,086 pads.

Despite the increase in sales transaction volume, the price per pad has been remarkably consistent since 2008, ranging 

from an estimated $45,000 to $50,000 per pad. Slightly fewer than 120,000 pads have been transacted on average annually 

since 2013.

MHC Lending Volume Also Increasing

Lending on MHCs has grown since 2008, as shown in the table below. MHC lending increased to $3.9 billion in 2013 from 

just $0.9 billion in 2008, followed by $2.5 billion in 2014, and $3.5 billion in 2015. 

Two of the largest MHC loans in 2015 were in California: “Huntington by the Sea” with 306 pads had a loan of $75 million,

and “Surf City Beach Cottages” with 256 pads had a loan for $52 million.

MHC Sales (Jan. 1, 2005 – April 30, 2016)

Source: Real Capital Analytics: https://www.rcanalytics.com

Note: Based on transactions valued at $2.5 million or higher. Includes both sales and refinances of existing properties. 
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Private Investors are a Significant Factor in MHCs

According to Data from Real Capital Analytics, private investors have the largest share of the MHC market with 47 percent. 

Since the beginning of 2015, privately owned companies and real estate developers accounted for the vast majority of 

private investment, with $1.9 billion invested. Non-publicly traded REITs accounted for just $120 million and high-net-worth 

individuals just $18 million.

Nevertheless, public investors also play a significant role. As shown in the chart below, since 2015, 42 percent of MHC 

investments were made by publicly-traded companies. These included real estate investment trusts (REITs), publicly traded 

owners and operators of MHCs, and publicly traded development and property management companies. Equity funds and 

institutional investors have also played a smaller role in the MHC sector.

Investor Category for MHC Transactions (Jan. 1, 2015 – April 30, 2016)

Source: Real Capital Analytics: https://www.rcanalytics.com

As shown in the table below, since Jan. 1, 2015, the publicly traded company with the highest investment in MHC – at $1.4 

billion – was Sun Communities, Inc., a REIT that owns more than 200 MHCs in 29 states. In second place – with a $214 

million investment – was NorthStar Realty Finance, which holds an estimated 136 MHCs with 33,000 pads in 14 states. 

Foreign investors also appear to have a strong interest in MHC. Rounding out the top three was Ingenia – the largest 

Australian REIT, which specializes in retirement MHCs – with $103 million.

The top three privately held companies investing in MHCs since the beginning of 2015 are RHP Properties with an 

investment of $460 million, AMC REIT with $117 million, and Hometown America with $80 million. Carlyle Group has led 

the equity investors, with $174 million invested since the start of 2015.

With $19 million invested, Northwestern Mutual, an insurance company, has been the institutional investor making the 

largest investment since the start of 2015. 

Investors by Category for MHC Transactions (Jan. 1, 2015 – April 30, 2016)

Public Entity Private Entity Equity Fund

Sun Communities, Inc. $1.4 B RHP Properties: $460 M Carlyle Group: $174 M

NorthStar: $214 M AMC REIT: $117 M Tricon Capital Group: $69 M

Ingenia: $103 M Hometown AM: $80 M Westwind Investors: $63 M

UMH: $102 M Horizon Land Co: $76 M Lone Star: $29 M

Equity Lifestyle Properties: $61 M Meritus Communities: $74 M Green Courte Partners: $15 M

Source: Real Capital Analytics: https://www.rcanalytics.com
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Manufactured Housing Rentals Remain Highly Affordable

MHC rentals tend to be quite affordable. As shown on the left chart below, based on the most recently available data from 

the 2014 American Community Survey, 21 percent of all manufactured housing rental units are affordable to households 

earning less than 30 percent of the local area median income (AMI), another 38 percent are affordable to those earning 31 

percent to 50 percent of their AMI, and 36 percent are affordable to those earning 51 percent to 80 percent.

As shown on the right table below, lowest asking rent recorded for a rental unit at an MHC averaged just $292 as of the end 

of May in Fort Wayne, Indiana, which was just 46% of the average asking rent for an apartment in the same metro area.

What is perhaps surprising is that 5 percent of units are only affordable to those earning more than 80 percent of their local 

AMI. Most likely, these are units in age-restricted MHCs catering to retirees with higher incomes. In fact, among the highest 

asking rents recorded for a rental unit at an MHC was average asking rent of $1,234 as of the end of May in the Sarasota 

metro area. This is an estimated 10% higher than the average asking rent for an apartment in the same area.

Manufactured Housing Units Segmented by Affordability

An Important Source of Affordable Rental Housing 

MHCs are a critical source of affordable rental housing in many parts of the country. They may be the only source of 

affordability, especially in rural areas. With rental demand increasing and fewer MHCs being developed, an anticipated 

supply/demand imbalance is likely brewing. Increasing the development of new MHCs, as well as preserving existing 

properties where possible, would go a long way toward maintaining this critical source of affordable housing. 

Tanya Zahalak

Senior Multifamily Economist

Multifamily Economics and Market Research

June 2016

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Multifamily Economics and Market Research Group (MRG) 

included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a 

number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many 

factors. Although the MRG bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does 

not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the 

assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, 

forecasts, and other views published by the MRG represent the views of that group as of the date indicated and do not necessarily 

represent the views of Fannie Mae or its management.

Bottom-Five Rents by Metro Area:

Fort Wayne, IN: $292

Springfield, IL: $393

Toledo, OH: $541

Philadelphia-Wilmington-Atlantic City, PA-DE-NJ: $624

Jackson, MI: $676

Top-Five Asking Rents by Metro Area:

Sarasota-Bradenton, FL: $1,234

Austin-San Marcos, TX: $1,183

Orlando, FL: $1,147

Daytona Beach, FL: $1,071

Los Angeles- Riverside-Orange County, CA: $1,027

Source: Fannie Mae tabulations of 2014 American 

Community Survey data for all occupied manufactured 

housing rentals, including those outside MHCs. Includes

data on recreational vehicles and boats.

Source: Datacomp/JLT based on rentals listed for select 

metros with at least 10 listings as of May 30, 2016.