Lot rent

Definition

The monthly rent a resident pays for the pad under a home they own themselves.

Why It Matters

Lot rent is the model's whole engine: the park rents land, the resident owns the home on it, and because moving a manufactured home is expensive and disruptive, occupied lots turn over rarely and collections run strong. The two numbers that price a park are the lot rent against the local market and the occupied-lot count, and the classic underwriting story, sub-market rents walked up over several years, is real value and real people's housing costs at once, which a buyer should price with both facts in view.