Appraising RV Parks 101: What Lenders, Investors, and Developers Need to Know

RV parks and campgrounds are going-concern special-purpose properties where income drives value, allocation between components is both required and inherently challenging, and generalist appraisers routinely produce flawed work. The U.S. RV park and campground industry generates approximately $10.9 billion in annual revenue, with roughly 15,000 to 16,000 parks operating nationally. 78% remain independent mom-and-pop operations and over 90% are owned by operators with fewer than 5 properties, creating significant fragmentation and information asymmetry for appraisers. This guide explains the valuation methodology, the metrics that matter, and the pitfalls that trip up generalist appraisers.

Income Capitalization Anchors RV Park Valuation

The income approach is universally considered the most reliable method for RV parks, as these properties trade on their ability to generate cash flow from site rentals, amenity fees, and ancillary revenue. For stabilized properties, appraisers use direct capitalization (Value equals NOI divided by Cap Rate); for proposed or unstabilized properties, a 10-year discounted cash flow model is employed. The sales comparison approach serves as supporting evidence, using per-site pricing and financial multipliers extracted from comparable transactions. The cost approach functions primarily as a floor value check and is most useful for new or recently developed parks.

Site Types, Occupancy, and Income Modeling

Income projection begins with a detailed inventory of all revenue-generating sites by type, as each commands dramatically different rates. Full hookup sites (water, sewer, 30/50-amp electric) generate the highest per-site revenue and are most in-demand, commanding a 20% premium in per-site valuation for parks with extensive full hookup infrastructure. Development costs range from $20,000 to $50,000 or more per site. Partial hookup sites (water/electric only) command lower rates, while tent/primitive sites generate the least revenue at $10 to $25 per night with minimal infrastructure costs of $500 to $3,000 per site.

Cabin Rentals and Glamping Trends

Cabin rentals command ADRs 2x to 4x higher than standard RV sites and are classified as real property improvements, with construction costs of $50,000 to $150,000 or more per unit. Glamping units (safari tents, yurts, geodesic domes) represent the fastest-growing segment, with 34% of new campers in 2024 trying glamping and the global glamping market reaching approximately $12.4 billion in 2024. Parks adding glamping see higher ADR and extended shoulder-season demand.

Occupancy Rates

National average occupancy runs 60% to 70% annually, with peak summer occupancy at 90% to 100% at popular destinations and off-peak floors of 20% to 30% in seasonal markets. 56% of campers reported difficulty finding available sites in 2024, indicating persistent demand pressure. Average transient ADR is approximately $50 per night nationally, ranging from $30 to $40 for basic rural campgrounds to $60 to $100 or more for upscale RV resorts. Monthly/seasonal rates average $400 per month, with premium resort monthly rates reaching $1,000 to $1,400.

RevPAS and the Contract Mix Equation

Revenue Per Available Site (RevPAS), the RV park equivalent of hotel RevPAR, is calculated as Occupancy Rate multiplied by ADR. National average RevPAS runs approximately $12,000 per year per site, ranging from $8,000 for seasonal/basic parks to $15,000 or more for year-round premium destinations. Operating expense ratios range from 45% to 70% of revenue: transient-heavy parks run 60% to 65% (higher marketing, turnover, and labor costs), while long-term/seasonal-heavy parks run 55% to 60%.

The split between seasonal and year-round operations profoundly affects valuation methodology. Seasonal parks (northern/mountain, open 6 to 8 months) must earn the bulk of their income in half the year, with annualized occupancy around 50% and cap rates of 9% to 11% reflecting greater risk. Year-round Sunbelt parks achieve 60% to 70% or more annual occupancy and command cap rates of 7% to 8% with superior operating margins from continuous utilization. Seasonal parks require DCF modeling with monthly inputs, and lenders may demand escrow of summer cash for winter debt service.

Revenue Mix Analysis

The monthly/long-term versus nightly/transient revenue mix is equally critical. The commonly cited optimal mix is a 70/30 split: 70% long-term for base cost coverage, 30% transient for peak revenue upside. Financial modeling for a 100-site park shows this dynamic clearly:

• 70% Seasonal / 30% Transient: $610,000 revenue, $244,000 NOI, 40% margin
• 30% Seasonal / 70% Transient: $783,000 revenue, $274,000 NOI, 35% margin

While a higher revenue is generated with a 30% seasonal/70% transient mix, it results in lower margins due to increased operating costs.

Going Concern and Personal Property Allocation

Like gas stations and car washes, RV parks are going-concern properties where total value includes tangible real property (land, utility infrastructure, roads, buildings), tangible personal property (FF&E), and intangible business enterprise value (goodwill, brand, management systems, customer lists). For lending purposes, SBA SOPs specify that rental income or any intangible assets should not be included when valuing the collateral; lenders lend only on the real property component.

Personal property in RV parks includes recreational amenities (pools at $50,000 to $150,000, playgrounds at $10,000 to $30,000, game rooms at $20,000 to $50,000), office/registration equipment, laundry equipment ($20,000 to $40,000), maintenance equipment, and bathhouse fixtures ($75,000 to $150,000 per ADA-compliant bathhouse). A contingency of 10% to 15% of total development budget is recommended for FF&E.

SBA and USDA Lending Requirements

SBA 7(a) loans offer up to $5 million with 10% to 30% down, variable rate, and 25-year real estate terms. DSCR requirements are typically 1.25x. Appraisals must be dated within 12 months, on an as-is market value basis. SBA 504 loans offer up to $5 million with 10% to 20% down at fixed rates over 10/20/25-year terms, with job creation requirements.

USDA Business and Industry (B&I) loans are particularly relevant for RV parks given their often rural locations. These offer up to $25 million with 20% to 40% down and up to 30-year terms, but require location in a rural area (population under 50,000) and a DSCR of 1.25x. USDA requires a feasibility study for all new businesses, which must include economic, market, and technical feasibility analysis, community impact assessment, NEPA review, and loan guarantee justification. Critically for SBA eligibility, parks must derive at least 50% of gross income from short-term stays of 30 days or less.

Cap Rates Span a Wide Range by Park Quality

Cap rates for RV parks in 2024 to 2025 demonstrate the widest range of the three special-purpose property types covered in this series, reflecting the extreme diversity in park quality, location, and operational intensity. Premium destination resorts (Sunbelt) trade at 5% to 7%. Well-maintained secondary market parks trade at 6.25% to 7.25%. Standard parks in good condition trade at 8% to 10%. Seasonal Midwest/Appalachian parks trade at 9% to 11%. Turnaround/distressed properties trade at 9% to 12% or more. RV parks offer 150 to 300 basis points more yield than multifamily (roughly 5.5% to 6%) or self-storage (roughly 6%), reflecting higher operational intensity and property-specific risk.

Per-site pricing in comparable sales varies enormously: a 2024 transaction saw a 273-site Wisconsin RV resort trade at roughly $54,700 per site ($14.95 million total), while basic parks in rural areas list at approximately $16,800 per site. Gross revenue multipliers range from 2.0x to 4.0x, and EBITDA multiples from 4.0x to 7.0x.

Cost Approach and Development Economics

The cost approach for RV parks inventories land value plus replacement cost of all improvements minus depreciation. Per-site development costs range from:

• $500 to $3,000 for dry/primitive camping,
• $5,000 to $25,000 for standard 30-amp sites,
• $20,000 to $50,000 or more for full hookup 50-amp paved sites,
• $40,000 to $60,000 or more for premium resort sites with concrete pads and landscaping.

Infrastructure costs include:

• clearing/grading at $8,000 to $12,000 per acre,
• roads at $4 to $15 per square foot,
• electrical at $3,000 to $7,000 per site,
• septic systems from $100,000 for small parks to $1 million or more for treatment plants.

The most commonly cited all-in cost is $30,000 to $40,000 per site.

Park Models, Age Restrictions, and Zoning Entitlements

Park Model RVs, built to ANSI A119.5 standard at up to 400 square feet, are classified as recreational vehicles and are specifically excluded from HUD manufactured home regulations. This classification simplifies their placement in RV parks and allows them to bypass full residential reviews. Units exceeding 400 square feet (except in Florida, which allows HUD Park Models of 400 to 500 square feet) fall under HUD manufactured home codes. Park models are generally classified as personal property, and appraisers must verify whether they are park-owned (contributing to income and going-concern value) or tenant-owned (personal property not included in park valuation).

Age-restricted (55+) parks concentrate in Arizona, Florida, and Texas, attracting longer-term seasonal residents and operating more like manufactured housing communities with lower turnover and operating costs. While 55+ parks often command lower cap rates due to cash flow stability, the age restriction creates a narrower buyer pool on exit. Family parks offer broader customer bases and greater revenue upside, with 61% of new 2024 campers being Gen Z or Millennials, but require higher operational intensity.

Zoning and entitlement value is particularly significant for RV parks because approved zoning is difficult and expensive to obtain. Barriers include zoning restrictions, NIMBY opposition, lengthy permitting, and rising land costs. Only roughly 5% of park operators plan to open new parks in any given year, and the national park count grows only roughly.

Environmental and Infrastructure Due Diligence

Environmental considerations center on wastewater, water supply, and land characteristics. Septic systems serving over 5,000 gallons per day require domestic wastewater permits, with costs ranging from $4,000 to $25,000 per state for standard systems to $100,000 or more for large parks and $1 million or more for full treatment plants. Failed percolation tests eliminate conventional septic options. Municipal water supply is preferred; private wells require pump houses, treatment systems, and health department permits. FEMA flood zone mapping is essential, as siting pads in floodplains creates both regulatory and insurance challenges. Insurance premiums are rising 15% to 20% year-over-year in storm-prone states, and parks in wildfire, hurricane, or flood zones may need significant resilience investments.

Understanding revenue maximization strategies is essential for appraisers evaluating the income approach. The RV park sector's maturation is creating more comparable sales data and clearer cap rate benchmarks for appraisers.

For lenders and investors evaluating projects in this sector, UnionMetric provides independent RV park appraisal services that meet SBA and USDA requirements.

Income approach methodology including seasonal DCF modeling is critical for RV park valuations.

Sources

1. Loan Analytics, RV Park Industry Outlook 2025: Data-Driven Trends in Occupancy Revenue and Cap Rates
2. Loan Analytics, Seasonality Contract Mix and Yield: A Modern Feasibility Model for RV Parks
3. RV Park University/Frank Rolfe, RVP Appraisals
4. DealStream, RV Park Rules of Thumb: Key Industry Benchmarks and Metrics
5. GatherGrounds Resorts, How to Accurately Assess Your RV Park's Worth: 5 Key Factors
6. SBA SOP and USDA RD Instruction 4279-B, Feasibility Study and Appraisal Requirements
7. MMCG Invest, Practical Guide for RV Park Planning Development and Operations