Welcome to an excerpt from The Sunstone Standard, a monthly newsletter sharing intel and insights into our work in the MH/RV industry.
MHI Recap
This year’s MHI Congress reinforced a few clear themes across the MH/RV sector. Capital remains available, but underwriting discipline has tightened. Debt is driving deal flow, and pricing expectations continue to adjust, particularly on weaker assets.
At the same time, demand for high-quality communities remains strong, with institutional and private capital continuing to target the sector. The takeaway: the market is active, but execution, structure, and asset quality are doing more of the work than they were even 12 months ago.
Manufactured Housing Debt Markets Stabilize Below Peak Leverage
Liquidity in the debt market continues to outpace the availability of opportunities. The market’s ability to deploy robust debt capital in today’s environment makes for a more favorable borrower dynamic. This is an opportune time to review and revisit existing debt in your portfolio, as lenders across the US are seeking to deploy more capital into the MHC and RV space.
What’s Happening in the MH & RV Market
Lenders are underwriting to in-place income rather than forward rent projections.
Insurance costs remain volatile in hurricane- and wildfire-exposed regions.
Expense ratios are receiving heightened diligence review.
Cap rate expansion has slowed in core Sunbelt markets, while secondarymarkets continue adjusting.
What This Means for Owners
Value in today’s market is built on operational durability. Occupancy stability, expense control, and thoughtful debt structure matter more than pro forma growth. Portfolios reliant on aggressive rent increases face valuation pressure, while defensible income streams continue to attract capital.
