Blog
RV Park Cap Rates and Valuation — 2026 Investor Math
By Jason Taken · Principal
RV park cap rates and valuation in 2026 — NOI methods, seasonality adjustments, debt yield gates, and what lenders pay for outdoor hospitality.
RV park cap rates in 2026 reflect outdoor hospitality risk — seasonality, insurance, utility CapEx, and operator dependence — not apartment NOI with trees.
Investors who mis-price parks annualize summer and lose deals at refi when winter DSCR fails.
Hub: RV park and campground financing · Acquisition: how to buy an RV park
Core valuation formula
Value = NOI ÷ Cap Rate
| Input | Source |
|---|---|
| Gross income | Pad rent + store + laundry + propane + fees |
| Vacancy & collection loss | T-12 actual — not broker pro forma |
| Operating expenses | 35%–45% of EGI typical |
| NOI | Trailing 12 months stabilized |
Cap rate bands (illustrative 2026)
| Park type | Cap range | Driver |
|---|---|---|
| Sunbelt snowbird | 7%–9% | Strong winter NOI |
| Mountain seasonal | 8%–10% | Summer peak only |
| Travel stop / interstate | 9%–11% | Lower ADR, higher turnover |
| Turnaround / value-add | Buyer-specific | Discount to as-is NOI |
| Glamping hybrid | 8%–11% | Operator-dependent — glamping guide |
Worked example — stabilized Sunbelt park
T-12 NOI: $420,000 · Market cap: 8.5%
| Calculation | Result |
|---|---|
| Value = $420K ÷ 0.085 | ~$4.94M |
| Bank loan 70% LTV | ~$3.46M |
| Equity required | ~$1.48M |
Debt yield gate — often binding
CMBS and conduit lenders underwrite debt yield = NOI ÷ loan amount:
| Debt yield target | Max loan on $400K NOI |
|---|---|
| 9% | ~$4.44M |
| 10% | ~$4.00M |
Debt yield can cap leverage below what cap-rate value suggests — model both.
Seasonality adjustment — common mistakes
| Mistake | Fix |
|---|---|
| July gross × 12 | Use T-12 P&L |
| Broker pro forma opex | Actual utility and insurance bills |
| Ignore bad debt | Trailing collection rate |
| Skip insurance renewal | Current quote in opex — critical FL/coastal |
Financing stress: SBA vs bridge — model worst-month DSCR for bridge refi.
When cap rate compresses (value up)
- Municipal utilities on every pad
- 75%+ T-12 occupancy
- Below-market ADR with credible lift — bridge thesis
- Expandable pad count — zoning allows growth
- Clean environmental — no septic overcapacity
Turnaround valuation — bridge sponsor view
As-is: 62% occupancy, $310K NOI → buyer cap 9.5% → ~$3.26M purchase basis
Stabilized pro forma: 78% occupancy, $485K NOI → refi cap 8% → ~$6.06M — if execution hits
Bridge underwrites path, not day-one stabilized value.
State illustrations
- RV park loans Florida — insurance and hurricane diligence
- Georgia outdoor hospitality
- RV park loans Illinois — seasonal Midwest model
Cap rate vs. debt yield — quick test
On any park LOI, run both:
- Value = NOI ÷ cap rate (market sale approach)
- Max loan = NOI ÷ debt yield (lender approach)
Whichever produces lower max loan binds your refi — especially on seasonal Illinois and Florida parks.
Submit T-12 with commercial scenario form for bridge pricing.
Regional cap rate context — 2026
Cap rates are market observations, not lender mandates — but they anchor purchase negotiations and refi expectations.
| Region | Stabilized cap band | Seasonality note |
|---|---|---|
| Florida Gulf / Panhandle | 7.5%–9% | Hurricane insurance compresses NOI |
| North Georgia mountains | 8%–10% | Summer-only peaks — T-12 critical |
| East Texas / Hill Country | 7.5%–9.5% | Strong transient + weekly mix |
| Upper Midwest | 8.5%–10.5% | May–September concentration |
| Colorado front range | 8%–10% | Shoulder season shorter than Sunbelt |
Industry benchmarks: National Association of RV Parks and Campgrounds (ARVC) publishes operator surveys — use as sanity check, not substitute for park-specific T-12.
Refi sensitivity — when 50 bps changes everything
Base case: $380,000 T-12 NOI · buyer paid 8.5% cap → ~$4.47M value · 70% LTV refi → ~$3.13M loan
| Cap rate shift | Implied value | 70% LTV loan | Equity trapped |
|---|---|---|---|
| 8.0% (compression) | ~$4.75M | ~$3.33M | Less |
| 8.5% (base) | ~$4.47M | ~$3.13M | Base |
| 9.0% (expansion) | ~$4.22M | ~$2.96M | +$170K equity needed |
| 9.5% (distress) | ~$4.00M | ~$2.80M | +$330K equity needed |
Bridge sponsors who buy at 9%+ implied cap on turnaround parks need occupancy lift to refi at 8% or below — model both cap rate and debt yield before LOI.
Lender valuation diligence checklist
| Item | Pass | Fail |
|---|---|---|
| T-12 P&L from seller QuickBooks | Audited or CPA-prepared | Broker spreadsheet only |
| Utility bills match pad count | Yes | Missing months |
| Insurance quote current | 2026 renewal | Prior-year estimate |
| Occupancy by month | 12-month grid | Peak month × 12 |
| Store / propane income | Separated in P&L | Bundled into pad rent |
| Environmental Phase I | Clean or manageable | Undocumented septic |
| Cap rate source | 2+ comp sales | Broker opinion only |
Failed items trigger bridge repricing at 8.99%–13.5% or lower LTV — not always deal death, but equity requirement rises.
Bridge vs permanent — valuation timing
| Phase | Value basis | Typical leverage |
|---|---|---|
| Acquisition (turnaround) | As-is NOI ÷ 9%–11% cap | 65%–75% LTV bridge |
| Stabilization (month 12–18) | T-12 NOI ÷ 8%–9% cap | Bank 65%–70% LTV |
| Agency / conduit (if qualified) | Stabilized NOI ÷ 7.5%–8.5% | 60%–65% LTV |
Compare acquisition paths: SBA vs bridge campground · RV park loan rates 2026
Worked turnaround — North Carolina mountain park
As-is: 48 pads · 58% T-12 occupancy · $265,000 NOI · buyer cap 10% → ~$2.65M purchase
Stabilized target (month 16): 76% occupancy · $398,000 NOI · refi cap 8.25% → ~$4.82M value · 68% LTV → ~$3.28M permanent loan
Equity at acquisition: ~$860K (32%) plus $180K CapEx holdback · Bridge IO at 10.5% on $1.79M funded ≈ $15,660/mo — budget 16 months carry before refi.
State guide: RV park loans North Carolina
Nationwide RV park bridge: rv park campground financing guide.
Underwriting mistakes that stall RV park files
| Pitfall | Fix before LOI |
|---|---|
| Cap rate applied to revenue that includes the store, rentals, and fees | Split real estate income from business income line by line |
| Owner’s unpaid labor left out of opex | Add a market wage for the manager role the seller fills |
| Utility costs from a mild year | Pull 24–36 months of electric, water, and sewer bills |
| Seller’s insurance premium | Get a 2026 quote at your coverage limits before pricing |
| Reservation data that cannot be exported | Ask for booking-system reports by site and month |
Pricing a park now? Pre-qualify for bridge terms or call (833) 264-7776 with the T-12 in hand.
Three-test loan sizing: LTV, debt yield, and DSCR
Lenders rarely size an RV park on one test. They run several and fund the lowest. Illustration: stabilized park with $400,000 T-12 NOI and an 8.5% market cap rate.
| Test | Assumption | Max loan |
|---|---|---|
| Loan-to-value | 70% of $4.71M value | ~$3.29M |
| Debt yield | 10% minimum | ~$4.00M |
| DSCR | 1.30x at 7.5%, 25-year amortization | ~$3.47M |
Here LTV binds at about $3.29M. Raise the cap rate to 9.5% and value drops to about $4.21M. The 70% LTV loan falls to about $2.95M, while the debt yield and DSCR limits do not move. On parks, the cap rate drives LTV, but the NOI drives debt yield and DSCR. That split is why a buyer who wins on NOI growth can still be capped by an appraiser’s cap rate.
Cap rates against the 10-year Treasury
Cap rates move with the cost of money. The 10-year Treasury yield was 5.24% on October 1, 2026, per the Federal Reserve’s H.15 selected interest rates release. The bank prime rate was 7.00% the same day.
Illustration: an 8.5% cap rate sits about 3.26 points over the 10-year. A park bought at 7.5% sits only about 2.26 points over it. A thinner spread leaves less room if rates rise before your refi. When Treasury yields climb, buyers usually push for higher cap rates, which lowers value on the same NOI. Build that risk into the refi sensitivity table above.
Demand backdrop for 2026 buyers
Two industry data sets point in different directions. Read them together.
- Camping demand is high. The KOA 2026 Camping & Outdoor Hospitality Report says more than 52 million North American households camped in 2025, above pre-pandemic levels. KOA puts the economic footprint at about $66 billion.
- New RV sales are soft. The RV Industry Association’s July 2026 shipment report shows 183,592 wholesale shipments through seven months, down 13.9% from the same point in 2025. Motorhome shipments fell 25.6% in July alone.
- Park model RVs are growing. The same report shows park model shipments up 24.5% year to date, at 3,015 units.
What that means for valuation: existing RV owners still need sites, so a soft new-unit market does not empty parks overnight. But it weakens the “more RVs every year” growth story in a broker’s pro forma. Park model growth supports parks that can add rental units or long-stay sites, which changes the revenue mix lenders underwrite.
Revenue mix changes the cap rate a lender accepts
Not every dollar of park revenue is valued the same way.
| Revenue type | How lenders tend to view it |
|---|---|
| Annual or seasonal site leases | Most stable — closest to rent |
| Monthly stays | Stable, but check local tenancy rules |
| Nightly and weekly transient sites | Higher yield, more volatile |
| Cabin, park model, or glamping rentals | Hospitality income — often stressed harder |
| Store, propane, laundry, and fees | Business income — may be excluded or haircut |
Example: two parks each show $500,000 NOI. Park A earns 70% from seasonal leases. Park B earns 70% from nightly bookings. An appraiser may apply a lower cap rate to Park A because its income behaves more like rent. Ask the appraiser how they separated real estate value from business value. That split can move the loan amount more than a quarter-point of cap rate.
Questions to send the listing broker before you accept a cap rate
- Which sales back the quoted cap rate, and were those parks seasonal or year-round?
- Is the NOI before or after a manager’s salary and the owner’s own labor?
- How much revenue comes from sites booked 30 days or longer?
- Were any capital repairs run through operating expenses, or left out entirely?
- What did insurance, electric, and sewer cost in each of the last three years?
Answers that arrive with documents earn a tighter cap rate in your own model. Vague answers deserve a wider one.
Related
Submit scenario · (833) 264-7776
Run cap rate and debt yield on every park LOI — the lower max loan binds refi, especially on seasonal assets.
RV Park Cap Rates and Valuation — 2026 Investor Math — next step (2026)
Submit scenario · Pre-qualify · (833) 264-7776.