Top U.S. Cities and States for Mobile Home Park Investment in 2026 and Beyond

Prepared per: PrimeX Capital

Date: February 1, 2026

Executive Summary

Mobile Home Parks (MHPs) continue to be one of the most resilient and high-yield asset classes in the 2026 real estate landscape. As traditional housing affordability remains a critical issue, the demand for manufactured housing has surged, with the market valued at over $15 billion and projected to grow at a CAGR of 5.87% through 2035 [1]. This report identifies the top-performing regions for MHP investment, focusing on markets with high migration, favorable landlord-tenant laws, and strong operational fundamentals.

2026 MHP Market Dynamics: The “Affordability Moat”

1.Supply Scarcity: New MHP development remains extremely difficult due to restrictive zoning, creating a “moat” around existing parks. This scarcity drives consistent rent growth, with major operators like Equity LifeStyle Properties (ELS) issuing 2026 rent increases averaging 5.1% [2].

2.High Occupancy: National occupancy rates for stabilized communities remain near historic highs, often exceeding 95-98% in top-tier markets [2].

3.Yield Superiority: While multifamily cap rates have compressed, MHPs still offer a yield premium, with stabilized assets trading between 5.5% and 6.5%, and value-add opportunities reaching 7.5% or higher [3].

Top 5 States for MHP Investment in 2026

1. Florida (The Retirement & Migration Magnet)

Florida remains the #1 market due to massive migration from the Northeast and strong retirement demand.

•Top Cities: Tampa, Orlando, Fort Myers.

•Strategy: Focus on newer communities built to enhanced hurricane standards to mitigate insurance risks.

•Key Metric: High rental occupancy and supportive zoning that recognizes MHPs as a critical affordable housing solution [4].

2. Texas (The Growth Engine)

Texas offers a business-friendly regulatory environment and low land costs, making it ideal for both acquisition and expansion.

•Top Cities: Austin, Dallas, Houston.

•Strategy: Target suburban “fringe” markets where infrastructure is expanding. Low property taxes in many counties enhance cash-on-cash returns [4].

•Key Metric: DFW and Houston lead the nation in manufactured home shipments [5].

3. North Carolina (The Workforce Housing Hub)

North Carolina is attracting residents priced out of coastal markets, creating strong demand for workforce housing.

•Top Cities: Raleigh, Charlotte, Fayetteville.

•Strategy: Focus on inland markets with stable employment bases in tech and education.

•Key Metric: Favorable regulations reduce operational compliance burdens compared to more tenant-friendly states [4].

4. Arizona (The Supply-Constrained Oasis)

Phoenix and Tucson are seeing high demand due to a limited supply of affordable housing and a growing retirement population.

•Top Cities: Phoenix, Tucson.

•Strategy: Value-add plays in submarkets with high tech-sector employment.

•Key Metric: Low maintenance costs due to favorable climate conditions enhance net returns [4].

5. Alabama (The High-Yield Opportunity)

Alabama offers some of the lowest acquisition costs in the country, paired with a growing job market in tech and manufacturing.

•Top Cities: Huntsville, Birmingham.

•Strategy: Opportunistic acquisitions of older parks for repositioning.

•Key Metric: Favorable landlord laws and minimal property management complexity [4].

Comparative Market Metrics (2026 Forecast)

State	Avg. Cap Rate (Stabilized)	Projected Rent Growth	Occupancy Rate	Regulatory Environment
Florida	5.5% – 6.0%	5.0% – 6.0%	98%	Favorable
Texas	5.8% – 6.3%	4.5% – 5.5%	96%	Very Favorable
Arizona	5.7% – 6.2%	5.5% – 6.5%	97%	Favorable
N. Carolina	6.0% – 6.5%	4.0% – 5.0%	95%	Favorable
Alabama	6.5% – 7.5%	3.5% – 4.5%	94%	Very Favorable

Strategic Recommendations for PrimeX Capital

•Prioritize Tenant-Owned Homes (TOH): To maximize passive income and minimize maintenance “hassle,” focus on parks with a high ratio of TOH.

•Leverage Legislative Shifts: Monitor states like Texas and Washington, where new 2026 laws are reducing regulatory hurdles for manufactured housing placement [6].

•Focus on Infrastructure: Prioritize parks with public utilities (city water/sewer) to reduce long-term CapEx risk and regulatory scrutiny.