Quick Facts About Park Models:
$81.63 Billion
Projected Market Growth by 2033
207 Million
Total Vacation Rental Nights in 2023
448 Million
Nights Booked Through Airbnb in 2023
450+
Zook Park Models Sold
Park Model Homes: Investment Guide
Whether you are a seasoned or new investor, the short-term rental market presents a golden opportunity. With a Park Model home, you can pay off and begin capitalizing on your new investment in 3 - 5 years. Let’s take a detailed look at Park Models as a short-term investment and get you started.
The Benefits of a Park Model Investment
01
Park Models are A Unique Investment
- Inflation Resistant: Park Model Homes are flexible. Due to the short-term nature of visitors, Park Model Homeowners can adjust prices nearly immediately to respond to changes in the economy.
- Recession Resistant: With a Park Model home, you have lower operating costs and can offer cheaper stays – which positions short-term rentals well in a recession environment.
- Low Volatility: Demand for short-term rentals has been growing steadily and remained relatively stable (see data below)
02
Park Models have Ownership Benefits
- Diversified Portfolio: As the old saying goes, “Don’t put all your eggs in one basket.” A well-diversified portfolio helps you minimize risk and maximize your returns. For example, while Covid negatively impacted international travel, we also saw the rise of “staycations.” This is a new trend where vacationers choose to find a retreat closer to home instead of international travel.
- Tax Benefits: Whereas homeowners typically pay property taxes, park model homes are technically registered as recreational vehicles, making them only subject to licensing and registration. Keep in mind you still may be subject to property tax through the property your park model sits on.
03
Park Models Are Low Maintenance
- Registered as RVs: Park Model Homes are legally registered as Recreational Vehicles
- Lower Cost: Park Models generally cost less than traditional real estate investments, giving them a quicker return on investment.
- Utility & Maintenance Costs: With their smaller size, park model homes typically incur lower utility and maintenance expenses.
- Rental Potential: Park Models are in high demand for short-term rentals through platforms like Airbnb and VRBO, especially in popular destinations.
How to Start Investing in Park Models
We recommend the following steps to prepare for the purchase of your next Park Model home.
Secure Land
Finding a location to place your Park Model home is the first step. The best location for you will depend on the purpose you are purchasing the park model home. Many people have found unique locations like campgrounds or areas around woods or lakes that are ideal for vacationers. For others, they simply have extra space in their backyard and want to make use of it with a Park Model Home.
Choose Your Park Model Home
At Zook Cabins, we specialize in modern and classic Park Model Homes. Whether you are interested in the modern A-frame or want a more traditional Log-Stacked Cabin, we are here to help! Check out our full list of Park Model homes.
Building & Delivery of Your Park Model Cabin
Your Park Model Home is delivered fully assembled on a truck and trailer and set up by our team. We recommend preparing a gravel foundation to prepare for your park model. You want your park model to be set on a solid and level foundation.
Manage Your Park Model and Rent It Out
Once set up and fully furnished to your liking, you can begin renting out your park model home. Get registered as an official Airbnb host and follow the steps to list your new park model home on the app. We also recommend posting your stay on other platforms like VRBO and Booking.com. Be sure to sync your calendars to make booking easier to manage!
Top Short-term Rental Markets in 2024
According to AirDNA, short-term rentals have the highest occupancy rate around unique areas. We recommend the following locations for your park model home. Your choice of location can help you maximize its rental potential and attract the right kind of guests. For example, this list from AirDNA shows the fastest-growing markets for short-term rentals in the US. Check it out below!
| Location | Occupancy Rate | Average Daily Rate | Average Revenue | Typical Home Price |
|---|---|---|---|---|
| Columbus, Ga. | 60% | $178 | $29,000 | $161,000 |
| Ellsworth, Maine | 73% | $335 | $41,000 | $325,000 |
| Logan, Ohio | 57% | $343 | $57,000 | $233,000 |
| Spring Hill, Fla. | 62% | $251 | $39,000 | $389,000 |
| Sneads Ferry, N.C. | 63% | $461 | $71,000 | $555,000 |
| Winter Haven, Fla. | 62% | $206 | $31,000 | $264,000 |
| Stanton, Ky. | 56% | $236 | $43,000 | $146,000 |
| Port Angeles, Wash. | 64% | $289 | $47,000 | $390,000 |
| Akron, Ohio | 58% | $199 | $26,000 | $145,000 |
| Fairbanks, Alaska | 65% | $225 | $32,000 | $239,000 |
| Mineral, Va. | 58% | $522 | $83,000 | $699,000 |
| Fernandina Beach, Fla. | 62% | $439 | $66,000 | $590,000 |
| Anaheim, Calif. | 77% | $477 | $112,000 | $868,000 |
| Beaufort, S.C. | 61% | $234 | $40,000 | $347,000 |
| North Myrtle Beach, S.C. | 61% | $498 | $77,000 | $595,000 |
| Fennville, Mich. | 56% | $595 | $63,000 | $309,000 |
| Helen, Ga. | 57% | $342 | $55,000 | $327,000 |
| North Las Vegas, Nev. | 61% | $316 | $57,000 | $385,000 |
| Wisconsin Dells, Wis. | 55% | $412 | $41,000 | $241,000 |
| Oneonta, N.Y. | 60% | $356 | $27,000 | $211,000 |
| Huddleston, Va. | 60% | $516 | $67,000 | $609,000 |
| Cocoa Beach, Fla. | 66% | $390 | $71,000 | $695,000 |
| Bradenton, Fla. | 61% | $329 | $46,000 | $454,000 |
| Largo, Fla. | 62% | $294 | $44,000 | $441,000 |
| Ashford, Wash. | 67% | $242 | $44,000 | $323,000 |
Best Locations for Park Model Homes
You may not be interested in putting a park model in one of these growing markets. If not, choose one of the popular location types below to ensure high demand year-round. The chart “Annual Occupancy by Location Type” from AirDNA shows the average annual occupancy rate by the most popular location types: coasts, mountains, lakes, suburbs, and urban and mid-sized to small cities. Besides small cities, each location type is projected to have over a 50% annual occupancy rate in 2024. When planning your investment in park model homes, double-check that you are choosing an attractive location! Remember, the more unique or attractive your location is, the more demand you can expect from your Park Model Home rental.
Campgrounds
Choosing a campground for your park model home is never a bad option. Campgrounds offer an outdoor and natural setting that often attracts vacationers and travelers who are looking for that outdoor and scenic experience.
RV Parks and Resorts
A slight alternative to the traditional campground is an RV Park or Resort. RV parks and resorts often provide amenities such as swimming pools, food halls, and recreation facilities for organized events making them a popular destination for family gatherings, church campouts, or business retreats.
Private Property
Using your own land, your backyard, or some property across town is a great way to increase the value of your property. Additionally, as the manager of your short-term rental, you can choose whether to use it for personal use or as a rental opportunity. Either way, your park model home could be rented out and serve as a private and personable getaway for guests.
Unique Locations
Look around; what are the unique locations in your neighborhood? Do you have a picturesque lakeshore, private woods, or live in a charming small town? Each of these would make a perfect location for a Park Model cabin. Often, vacationers just look for a weekend getaway and don’t want to travel to popular destinations. Remember, beauty is in the eye of the beholder.
Are Park Model Homes a Good Investment? Let’s Look at the data…
Forecasted Demand
In 2023, short-term rentals faced challenges with slowed demand growth and fewer nights booked. However, experts tend to agree that this downturn in market demand signifies a market correction, indicating upward growth. Check out the chart below to see historic short-term rental demand from 2022 and forecasted growth for 2024.
Occupancy Rate
According to Airdna in the chart above, 2023 served as a correction year for the market, setting the stage for an upward trend in 2024. So, despite the challenges of 2023, park model homeowners remain optimistic, with opportunities for growth right around the corner.
2024 is already off to a good start! February and March already saw higher occupancy rates than in 2023.
Occupancy by Location type
Naturally, your Park Model rental will perform better in a unique location. Mid-size and Rural cities saw the most growth in demand for short-term rentals. Coastal and mountain regions also showed a consistent increase. The data shows the growing interest in nature-focused getaways. Placing your park model in one of these locations could lead to higher occupancy rates and increased rental income.
Your Park Model Home is delivered fully assembled on a truck and trailer and set up by our team. We recommend preparing a gravel foundation to prepare for your park model. You want your park model to be set on a solid and level foundation.
Cost Breakdown and ROI for Park Model Investment
In general, you can expect to spend around $120,000 for the full installation of a new park model cabin. In the chart below, we break down the expected costs. This financial data is based on a past the Big Texan RV Ranch, a customer investing in park model cabins. Read more about their investment into 11 park model cabins.
Park Model Expenses
| Expenses with Park Model Homes | Year1 |
|---|---|
| Cabin + Delivery | $97k – $135k |
| Infrastructure (Landscaping, Decking, & More) | $1k – $20k |
| Park Model Maintenance | $2k per yr. |
| Total Expenses: | $119k and up |
Park Model ROI
The numbers on expected ROI for a park model cabin rented out vary and are based on seasonality, demand, and location. However, with data from our previous customer, Bobby Lee, from Big Texan RV Ranch, we can estimate a return of $33,000/year. Watch Bobby Lee discuss the strategy behind his investment of 11 Park Model homes from Zook Cabins!
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Sales | $33,215 | $33,215 | $33,215 | $33,215 | $33,215 |
| Total Income: | $33,215 | $33,215 | $33,215 | $33,215 | $33,215 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cabin + Delivery | $97,000 | ||||
| Infrastructure (Landscaping, Decking, & More) | $20,000 | ||||
| Maintenance | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Total Expenses: | $119,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Profit/Loss: | $-85,785 | $31,215 | $31,215 | $31,215 | $31,215 |
| Payback Periods | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Payback | $-85,785 | $-54,570 | $-23,355 | $7,860 | $39,075 |
The numbers on expected ROI for a park model cabin rented out vary and are based on seasonality, demand, and location. However, with data from our previous customer, Bobby Lee, from Big Texan RV Ranch, we can estimate a return of $33,000/year. Watch Bobby Lee discuss the strategy behind his investment of 11 Park Model homes from Zook Cabins!
Strategies to Boost Your Park Model’s ROI
Choose an Attractive Location
Opt for rare or unique spots for your park model rental. Naturally, areas near national parks, big cities, or resorts have higher land prices. Yet, with an eye for your town’s local charm and adding a creative twist, you can transform your secluded backyard or nearby woods into the perfect location for a couple’s weekend vacation.
Make Your Park Model Cozy
Enhancing the visual appeal of your park model can have a significant impact on its demand and occupancy rate. A fresh coat of paint, nice landscaping, and cozy outdoor furnishings are appealing to vacationers. Need inspiration? Check out our 29 Park Model Design Ideas to make your cabin more attractive to prospective renters.
Airbnb Pricing Strategy
Finding the right price can bring in guests and increase your Airbnb earnings. We recommend doing market research on your Airbnb’s location. What is the going rate for your area, and how does your Park Model compare to the quality of other stays? Also, check out Airbnb’s article on pricing strategies.
Marketing for Your Park Model
We highly recommend putting effort into marketing your new Airbnb. Find your niche style and take high-quality photos. Customers are much more likely to rent a location where they can see what they are getting. You could even consider creating a special Instagram or Facebook page for your Airbnb. Incentivize guests to submit their favorite photos to get featured on the page.
Park Model Investments: FAQs
Ready for the Cabin Life?
“I went to the woods because I wished to live deliberately, to front only the essential facts of life, and see if I could not learn what it had to teach, and not, when I came to die, discover that I had not lived.”
- Henry David Thoreau
