Question 1

How do you calculate cap rate for an RV park?

Accepted Answer

Cap rate equals Net Operating Income (NOI) divided by the purchase price, multiplied by 100. For example, a park with $150,000 NOI and a $1,500,000 purchase price has a 10% cap rate.

Question 2

What is a good cap rate for an RV park?

Accepted Answer

RV park cap rates typically range from 8% to 12%. Premium parks in high-demand areas may sell at 7% to 9%, while value-add opportunities in secondary markets often trade at 10% to 12%.

Question 3

How do you calculate NOI for an RV park?

Accepted Answer

NOI equals gross income minus operating expenses. For an RV park, gross income is calculated as: monthly lot rent × number of pads × 12 months × occupancy rate. Then subtract operating expenses (typically 30% to 45% of gross income).

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