Tennessee MHC flood fringe and no state income tax
Nashville Cumberland-adjacent parks need FEMA elevation in bank file — Music City in-migration supports lot-rent growth without rent control. No state income tax on rental profit improves refi cash flow — model explicitly versus Kentucky/Georgia hold comparisons.
Smoky Mountain destination adjacency requires shoulder-season occupancy in trailing 12-month count; peak summer-only annualization fails bridge refi.
Tennessee MHC bridge sponsors leverage no state income tax on rental profit — Nashville flood fringe and Memphis reassessment still require separate comp sets from Knoxville and Chattanooga exurban TOH at $800K–$1.8M on 40–75 pads. Music City in-migration supports lot-rent growth without rent control on MHC; rural well/septic parks need capacity reports in year-one capex. Hub: manufactured home community financing.
Bridge IO 8.99%–13.5%, 65%–75% LTV; permanent bank debt when 1.25x DSCR clears on trailing NOI. Rates: MHP loan rates 2026.
Sub-$3M flow: MHP loans under $3M · POH: POH vs TOH.
Tennessee MHC segments and basis bands
| Segment | Geography | Basis band | Financing note |
|---|---|---|---|
| Middle Tennessee exurban | Rutherford, Wilson, Maury | $900K–$1.8M | Nashville spillover |
| Knoxville/Chattanooga fringe | Loudon, Bradley, Hamilton exurban | $650K–$1.25M | Manufacturing + university workforce |
| Smoky Mountain corridor | Sevier, Cocke fringe | $700K–$1.4M | Verify TOH vs transient overlap |
| West Tennessee rural | Madison, Crockett, Dyer | $550K–$950K | Lower basis |
Rutherford County (Murfreesboro fringe) trades $1M–$1.5M on 45–65 pad TOH parks — no state income tax supports sponsor cash flow but property tax reappraisal on sale can bump 20% first year. Cumberland River valley parks need flood zone review on low-elevation pads.
Worked example — Rutherford County 50-pad TOH
$1.05M — 74% occupancy, municipal water, Middle Tennessee exurban
| Phase | Detail |
|---|---|
| Bridge acquisition | 71% LTV ($745,500) at 11.375% IO |
| Value-add | $78K — pad marketing, road repair, signage, 4 vacant preps |
| Fill-up | 74% → 87% (43 pads) over 10 months |
| Lot rent lift | +$42/pad ($395 → $437 avg) |
| Stabilized NOI | ~$10,680/mo after opex |
| Refi | Tennessee regional bank $820K at 7.25% in month 13. A 25-year payment is about $5,927, and $10,680 of NOI covers it about 1.80x |
Playbook: bridge-to-agency MHP
Tennessee diligence checklist
- Flood zone review — Tennessee river valley and Cumberland basin pads
- Well + septic capacity — rural West TN expansion limits
- POH ratio — model conversion plan for bank refi
- RV seasonality overlap — Smoky corridor parks near campground demand
- Regional bank refi path — confirm MHC lending team before LOI
- Property tax trajectory — county reappraisal cycles vary
Middle TN vs East TN — basis and exit
| Factor | Middle Tennessee exurban | East TN / Smoky fringe |
|---|---|---|
| Typical basis | $900K–$1.8M | $650K–$1.2M |
| Utilities | Municipal common | Mixed well/septic |
| Refi path | Nashville-area regional bank | Knoxville community bank |
| Growth driver | In-migration | Tourism + workforce |
Exit and refinance path
Tennessee MHC sponsors leverage regional bank relationships — bridge-to-bank is the primary exit on 30–60 pad TOH, not day-one agency.
Regional bank refi (Rutherford/Wilson): Worked example: $820K permanent at 7.25% replaced $745K bridge. A 25-year payment is about $5,927, so $10,680 a month covers it about 1.80x. Nashville-area banks move in 60–90 days once 87% occupancy holds for 90 trailing days. Confirm MHC lending desk before LOI — not all TN banks touch sub-$2M parks.
I-24 corridor comp discipline: Memphis fringe ($550K–$800K) vs Nashville exurban ($1M–$1.8M) — do not cross-comp submarkets in acquisition underwriting. Maury and Williamson support highest lot-rent growth (+$40–$55/pad post-acquisition).
Smoky Mountain fringe: Sevier-adjacent TOH parks near RV park loans Tennessee demand must prove year-round residents — transient overlap fails bank refi. Worker-housing pads need occupancy durability post-seasonal employment.
POH fill-up parks: 90-day trailing occupancy required before refi application — not snapshot month. Model $160–$240/home/mo POH habitability when 25%+ POH. POH vs TOH guides conversion.
West TN rural: Lower basis ($550K–$750K) with well/septic — community bank refi at 65% LTV typical. Seller carry: seller financing mobile home park bridges gap to stabilization.
Chattanooga fringe (Hamilton/Bradley): University and manufacturing workforce supports year-round tenancy on $650K–$1.1M parks — fill-up 10–12 months vs 14+ months West TN rural. Cumberland River basin low-elevation pads require FEMA review. Tennessee no state income tax improves sponsor bridge IO capacity but does not offset commercial property tax reassessment on Middle TN land sales.
Maury/Williamson lot-rent benchmark: Nashville-adjacent parks support $425–$475/pad post-lift vs $380–$410 at acquisition — document rent roll progression in bank refi memo. Knoxville fringe (Loudon/Monroe): Lower basis ($650K–$950K) with university and manufacturing workforce tenancy — community bank refi common once 82%+ occupancy holds 90 days.
Related Tennessee programs
- RV park loans Tennessee — outdoor hospitality sibling
- Fix and flip loans Tennessee
- DSCR loans Tennessee
- Hard money lenders Tennessee
Send Nashville/Memphis comp discipline, T-12 occupancy, and refi bank name — Tennessee MHC scenario · Southeast MHC programs · (833) 264-7776
Tennessee MHC underwriting focus (2026)
- Flood: Nashville Cumberland fringe FEMA review on acquisition
- Occupancy: Trailing 12-month — Smoky Mountain destination seasonality if applicable
- Tax: No state income tax on rental profit in hold/refi model
- Exit: Memphis vs Nashville comp discipline; community bank refi at 1.25x DSCR
Upload Nashville/Memphis T-12 and flood fringe FEMA if applicable — Tennessee pad-count file · Tennessee commercial programs · (833) 264-7776.
Tennessee MHC pad-count diligence
Tennessee MHC refi benefits from no state income tax on stabilized cash flow — Nashville flood fringe parks need FEMA elevation in bank file. Smoky Mountain destination adjacency requires shoulder-season occupancy in trailing 12-month pad count; Memphis vs Nashville comp sets stay separate on refi appraisal.
Upload Nashville/Memphis T-12 and flood fringe FEMA if applicable — Tennessee pad-count file · Tennessee commercial programs · (833) 264-7776.
Tennessee park / niche segment gates — Nashville (2026)
- MHP underwriting on Nashville — pad count, utility infrastructure, and ~0.67% tax on operating entity.
- No state income tax on rental profit — Nashville flood fringe and Memphis reassessment — segment comps do not cross into vanilla SFR Memphis pricing.
- Bridge 8.99%–13.5% IO with documented operating history or value-add scope before agency take-out.
Nashville MHP bridge 8.99%–13.5% IO · Tennessee hard money · (833) 264-7776.
A house mortgage is not the Rutherford County bridge
The average 30-year fixed mortgage rate was 7.28% in the week of October 1, 2026. In the week of September 24 it was 7.03%. The weekly series is FRED MORTGAGE30US. That average is for house loans. It is not a quote on a 50-pad park.
The illustration bridge is 11.375% interest-only, inside 8.99%–13.5%. The illustration bank loan is 7.25%. That bank coupon sits near the house-loan average and remains a commercial quote. Do not tell a seller the park will close on the weekly house-loan average.
Tennessee house prices, and only that series
FRED TNSTHPI is the all-transactions index. The first quarter of 1980 equals 100. It is not seasonally adjusted. The second quarter of 2026 was 705.37. The second quarter of 2025 was 687.50. The index rose 2.6%. A Nashville flood-fringe sale and a Memphis sale still do not share one comp set. The state index will not force them together.
Tennessee unemployment and Tennessee building-permit series were not in the verified set used here. They are omitted rather than guessed.
Carry on $745,500 while pads fill
Monthly interest at 11.375% on $745,500 is about $7,067. Twelve months is about $84,801 before points. The value-add line is $78,000. A year of interest is larger than the repair budget. The sources and uses should show both checks.
At 8.99% this balance is about $5,585 a month. At 13.5% it is about $8,387 a month. Jaken Finance Group places the quote inside that band after it reads occupancy, flood, and the rent roll.
Qualified purchase funding can reach 90% of price. Ninety percent of $1.05 million is $945,000. The sketch uses 71% with starting occupancy of 74%. The interest-only window is 12–24 months. A complete file closes in 7–10 business days.
The month-13 bank loan remains $820,000 at 7.25%. A 25-year payment is about $5,927. Monthly income of $10,680 covers it about 1.80 times. Keep the bank’s 1.25x minimum as a test you must clear. The 1.80x figure is what these dollars produce on a 25-year schedule.
A rental loan at 5.75%–10.5% closes in about 14 business days. Use Tennessee DSCR loans for rentals in that program. Use what a bridge loan costs for the interest-only acquisition. The park in this illustration exits to a regional bank, not to that rental coupon.
A Cumberland flood map belongs in the bank file before anyone relies on month-13 timing. Smoky corridor parks still need the slow months inside the trailing twelve. A July-only annualization misses the shoulder season on a Smoky corridor park.
No state income tax helps cash after expenses. It does not lower a county property-tax reassessment after a Middle Tennessee sale.
Call (833) 264-7776 with the flood map, the trailing twelve, and the bank you expect to refinance. Jaken Finance Group will underwrite the bridge against that exit.
Cash the Rutherford bridge leaves with the sponsor
The illustration price is $1.05 million. The bridge is $745,500. Equity is $304,500.
Repairs, signs, and vacant-pad work are $78,000. A full year of interest at 11.375% is about $84,801. Add those to the equity and the sketch is about $467,301 before points, flood insurance, and tax proration. The sketch uses the example’s own figures. It is not a new loan amount.
If the flood quote on a Cumberland pad is large, it comes out of the $10,680 monthly income or it sits as a reserve. Either way, rerun the $5,927 payment coverage. An elevation certificate that shows the pads are high can shrink that insurance line. An elevation certificate that shows they are low can erase the month-13 timing. Order it during the bridge, not the week the bank asks.
Smoky corridor books need October through March inside the trailing twelve, not only June through August. A park that looks 87% full in July can miss the bank test in February. Middle Tennessee exurban parks and Sevier fringe parks should not share that occupancy page.
Memphis basis stays in its own column. A West Tennessee well-and-septic park at the low end of the segment table is not evidence for a Rutherford County lot rent. Jaken Finance Group will ask which column the rent roll came from.
Maury and Williamson pads can support a higher lot rent than a West Tennessee well park. Document the old rent and the new rent line by line. A jump of $40–$55 a pad belongs in the bank memo only if the leases show it. Do not put the top of that range on a Madison County rent roll.
Knoxville fringe parks in Loudon often stabilize once occupancy holds near 82% for 90 days. That is a community bank test. It is not a reason to call the acquisition a rental loan. The acquisition at Jaken Finance Group, when it is a bridge, still prices from 8.99%–13.5% and funds in 7–10 business days on a complete file. The rental program, 5.75%–10.5% and about 14 business days, waits until the collateral matches that program.