If you’ve talked with a broker or buyer about your park, you’ve probably heard the term “cap rate.” It is the single number that does the most to turn your park’s income into a price. This page explains what cap rates are, the current published ranges for RV parks and campgrounds, what pushes them up or down, and the other numbers buyers look at alongside them. If you are weighing whether to sell your campground, these are the figures a buyer will ask about first.
What a cap rate is
A capitalization rate is the first-year return a buyer would earn on the purchase price if they paid all cash. It is calculated as:
Cap rate = Net operating income (NOI) ÷ Price
Turn it around and you get value: Value = NOI ÷ Cap rate.
A higher cap rate means a buyer sees more risk and wants a higher return, so the price is lower. A lower cap rate means a higher price for the same income. On $300,000 of NOI, the difference between an 8% and a 9% cap rate is about $417,000 of value (illustrative only, not an offer).
Current published cap rate ranges
These figures come from national surveys and market reports. They describe the market in general, not your park. Check the date on any cap rate you see quoted, because they change with interest rates and buyer demand.
| Segment | Published figure | Source and date |
|---|---|---|
| Class A and B RV parks (going-in) | About 8.0% | Newmark 2026 North American Market Survey, via BVWire #282-2, Mar. 11, 2026 |
| Class C RV parks | About 9.0% | Same |
| RV parks compared with manufactured housing communities | 50 to 150 basis points higher | Same |
| Value-add RV parks and campgrounds | 11% to 12% | MMCG Invest, US RV Park and Campground Market Outlook 2026, Aug. 1, 2026 (vendor estimate) |
MMCG also reports a single example: a stabilized 115-site resort in Abilene, Texas that traded at about 7.75% in December 2025. One sale is not a market, but it shows where well-run, stabilized parks can land.
We plan to update this table each year as new surveys are released.
What moves a cap rate
- Park class and quality. Newer parks with full hookups, 50-amp service and strong amenities sit at the low end. Older parks with limited utilities sit higher.
- Seasonality. A park that earns most of its money in a few summer months carries more risk than a year-round park. MMCG’s example northern park earned about 62% of its transient revenue from May through September.
- Location and demand. Parks near steady demand drivers, such as lakes, parks, highways and cities, are seen as safer.
- Income mix. Contracted seasonal and monthly income can steady the picture compared with all-nightly income.
- Condition. Wells, septic, electrical and roads that need work push a cap rate up, or come off the price directly.
- Quality of records. Income a buyer can’t verify gets discounted.
- Interest rates. When borrowing costs rise, buyers need higher returns to make a deal work. MMCG’s outlook cites a 10-year Treasury yield of 4.67% on July 31, 2026, and community and regional bank loans for parks at roughly 6.5% to 8.0%.
How buyers use cap rates
Buyers don’t apply a cap rate to your NOI as reported. They rebuild NOI first, adding a market wage for owner labor, a replacement reserve and any expenses they expect to change. Then they apply the cap rate they need to meet their return and their lender’s requirements.
Value-add buyers often apply a higher cap rate to today’s income, then plan to improve the park. Buyers of stabilized parks may accept a lower cap rate in exchange for steady income. That is why two buyers can look at the same park and arrive at different prices.
Other financial metrics buyers check
Expense ratio and NOI margin
The expense ratio is operating expenses divided by revenue. MMCG’s August 2026 outlook cites a Newmark sample of 62 parks with about 10,682 sites where operating expenses ran about 53.7% of revenue. It also notes that Sun Communities’ RV segment reported a 46.8% same-property expense ratio in fiscal 2025, and that seller statements showing expenses under 45% are often restated by buyers. If your ratio is much lower, expect a buyer to ask why.
NOI per site
Per MMCG, Newmark’s benchmark works out to about $2,034 of NOI per site. Use this only as a rough comparison. Site types, season length and region vary too much for one number to fit every park.
Occupancy and revenue per site
Buyers look at occupancy by month and by site type. MMCG cites Outdoor Hospitality Industry data showing full-hookup RV sites averaged 68% occupancy during operating months, while rustic and tent sites averaged 25%. Revenue per site, by site type, shows whether your rates fit your market.
Sites per acre
Density depends on local zoning and health rules, site size, rig length, and whether sites are pull-through or back-in. Buyers look at density mostly to judge comfort and whether there is room to add sites. Check your local code before assuming you can add more.
Are RV parks profitable?
Many are, but profit varies widely. The surveys above suggest a well-run park keeps a meaningful share of revenue as NOI after paying all operating costs. Parks with short seasons, aging utilities or heavy owner labor that isn’t counted as a cost can look more profitable on paper than they are to a new owner. The honest test is a normalized NOI that includes a fair wage and a reserve.
Getting an opinion on your park’s cap rate
A campground broker or appraiser can tell you how buyers in your region are pricing parks like yours. For large parks, portfolios, or owners who want competitive bidding, a broker is often the right call. GatherGrounds owns and operates three campgrounds in Michigan and Ohio, and our team is happy to explain how we would underwrite a park. You can reach us through the form on our Sell Your Campground page.
GatherGrounds looks at campgrounds and RV parks with 130 or more sites in Michigan, Ohio and other Great Lakes states, and parks that need work, such as deferred maintenance or dated infrastructure, are welcome.
Thinking about selling? Talk with us confidentially through the form on our Sell Your Campground page.
Questions
What is a good cap rate for an RV park?
It depends on the park. Newmark’s 2026 survey, reported by BVWire in March 2026, puts Class A and B RV parks around 8.0% and Class C around 9.0%. MMCG’s August 2026 outlook estimates 11% to 12% for value-add parks. A lower cap rate means a higher price.
Are campground cap rates higher than RV park cap rates?
Survey data usually reports RV parks and campgrounds together or by class rather than by name. Parks with shorter seasons, more tent and rustic sites or older utilities generally carry higher cap rates.
Why are RV park cap rates higher than mobile home park cap rates?
RV park income is usually shorter-term and more seasonal than mobile home lot rent. Newmark’s 2026 survey, via BVWire, puts the premium at 50 to 150 basis points.
Do interest rates affect cap rates?
Yes, generally. Higher borrowing costs push buyers to need higher returns, which tends to push cap rates up and prices down. We don’t try to predict rates.
How often do cap rates change?
They move with interest rates and buyer demand. Always check the date on a published figure. We plan to update this page as new surveys come out.
