Manufactured housing communities are a land lease with sticky tenancy. In the K-Deal securitizations closed from January through August 2026, the class carries the lowest capitalization rate in the tape, expenses run below conventional apartments, and lenders still size the loans conservatively.
- Loans tracked 51 · 8,362 sites
- Cut-off loan balance $484M
- Expense ratio 35.1%
- Weighted cap rate 5.03%
How the loans are priced.
The weighted coupon is 5.21 percent, about 6 basis points over conventional loans of the same term. Loan-to-value is 57.4 percent against 64.7 percent, coverage is 1.48x against 1.38x, and the debt yield is 9.0 percent against 8.4 percent. The capitalization rate is 5.03 percent, below the 5.43 percent on conventional apartments and below the roughly 6 percent broker average reported for 2025 community sales. Value is $105,000 per site. The loan is $57,900 per site. Sizing is usually constrained by the appraisal, not by income. Thirty-eight percent of the balance is 10-year, and 32 percent is full-term interest-only.
The communities.
The average loan is $9.5 million, across 19 states. Florida is 20 percent of the balance, followed by Michigan and Texas. Seven of the loans are age-restricted. The median year built is 1971. Residents own the homes, so lenders look at water, sewer and roads rather than at building age, and value per site has little to do with vintage. The median community appraised at $95,000 per site. Expenses absorb 35.1 percent of revenue, against 41.6 percent for apartments, and median revenue is $7,531 per site. National occupancy is about 95 percent. The average site rent in 2025 was $772, up 6 percent, across roughly 43,000 communities.
What that means for debt.
An illustrative coupon, marked to Treasuries at the end of September 2026, is about 6.35 percent — roughly 114 basis points above the first-half pricing in the tape. Sized to 1.25x coverage on a 30-year amortization, the loan is about $55,600 per site, 4 percent below the $57,900 in the tape. Private water and sewer, park-owned homes and road condition are the diligence items that move proceeds. Agency programs limit how much of a community can be rental homes. At a 57.4 percent loan-to-value, most of these loans can take a supplemental without a full refinance.
Loans are identified by market only. Debt figures are illustrative, marked to Treasuries as of 28 September 2026. For discussion only; not a valuation opinion, investment advice, or an offer to lend.