How Much Is an RV Park Worth?

Value starts with net operating income

Net operating income (NOI) is annual revenue minus annual operating expenses, before debt service and before income taxes. Buyers work from NOI rather than gross revenue because two parks with the same gross can have very different expense loads.

For owner-operated parks, a buyer will normally add a market management expense even if you do not pay yourself. That is not a criticism of your operation; it reflects what the property costs to run under new ownership.

The cap rate converts income into price

Dividing NOI by a capitalization rate produces an indicated value. The cap rate a buyer applies reflects risk: how stable the income is, how well it is documented, how much of it depends on one season or one employer, and how much capital the property will need soon.

This is why record quality changes price. Identical income supported by three years of clean statements is worth more than the same income supported by memory and a deposit book.

Factors that move value up

• Full hookups with 50-amp service on a high share of sites
• Documented multi-year revenue and occupancy history
• A balanced mix of monthly tenants and higher-rate transient nights
• Municipal water and sewer, or a well-documented private system with capacity headroom
• Usable, permittable expansion acreage with utility capacity
• Paved or well-maintained roads and level, big-rig-capable pads
• Location with genuine demand drivers: employment, tourism, lake or interstate access

Factors that reduce value

• Aging electrical infrastructure, especially 30-amp-only pedestals
• Septic or well systems at or near capacity, or without permit documentation
• Heavy deferred maintenance on roads, pads, bathhouses, or utility lines
• Revenue concentrated in a handful of seasonal weeks
• Undocumented tenant arrangements or unclear ownership of on-site units
• Zoning that is nonconforming, unclear, or restrictive on length of stay
• Floodplain exposure covering a meaningful share of income-producing sites

Land value can set a floor

In growth corridors, the land under a park can be worth more than the operating business. In rural markets, the reverse is usually true. A serious buyer underwrites both and works from the higher, realistic figure.

Why 'X times revenue' rules of thumb mislead

Revenue multiples ignore expense structure, capital needs, seasonality, and infrastructure. They are easy to quote and frequently wrong by a wide margin in both directions. An owner who anchors on a rule of thumb often either turns down a fair price or spends a year chasing an unreachable one.