Are Manufactured Homes a Good Investment?

Are manufactured homes a good investment? The answer is simple – yes, they can be. Manufactured homes are the most suitable choice if you are looking for low-cost housing options. 

These homes originated in America during the rise of the working class, as providing the people with affordable and feasible housing facilities was essential. Working class individuals continuously moved across the state in search of daily wages or long-term jobs. Therefore the moving and accommodation expenses needed to match their budget.

The government launched mobile homes to stabilize these people and help them achieve a certain living standard in society. The self-explanatory name tells us the unique feature of these homes. You can take them with you to switch locations.

What's Ahead...

Manufactured Housing as an Investment

Mobile homes can be a profitable investment opportunity for both homeowners and entrepreneurs. You can also invest in these homes and later use them as a source of passive income. Following are the ways homeowners and investors can benefit from mobile homes.

Are Manufactured Homes a Good Investment?

For Homeowners

  • Affordable

One of the most attractive aspects of selecting mobile homes is that it won’t be a burden on your wallet. A decent amount of money can turn you into a homeowner overnight and get you a place on the affordable housing market. 

Certain factors may decide the overall cost of mobile homes. These include the amenities available within the home. Moreover, the manufacturing costs of a mobile home play a great role in deciding the price. 

The more a company invests in making the home reliable and comfortable for you, the more it will charge. The price also depends upon the square feet area of the home.

Nevertheless, the cost is always less than an onsite constructed home. Each square foot of a manufactured house may start from $30, which is cheaper compared to a modular home which is often at $50 per square foot. Therefore you can get a decent manufactured home through your savings. However, you might have to find other options if you have a family.

  • Multiple Funding Options 

Over time, the cost of housing has increased. It is becoming quite a challenge for people from the middle and lower classes to get their homes. Moreover, funding site-built homes is complex due to the high cost and interest rates. 

As a result, people are becoming more inclined towards manufactured housing, due to which the number of homes built each year is also increasing. In contrast, you can find several funding options to help you become a mobile home’s sole owner. These involve personal loans, but the interest rates can break your back. 

You will have to settle a mortgage if you purchase the land to place the manufactured home. The latter has a longer repayment timeline. In contrast, the former allows you to repay the amount and own the home instantly. Moreover, a personal loan can be sufficient to finance a mobile home purchase.

  • Instant Availability

Manufactured homes appeal to investors and have an instant reward acquisition mentality. Unlike traditional homes, they will not require a great deal of your time, effort, and money. 

The units for manufactured housing have template house designs that they show to the customers. Once they agree, the company replicates the template and ships it. Sometimes people customize their manufactured homes and share ideas with the company. 

In such cases, it may take them a few more days to accommodate your preferences and complete the process. Certain steps in purchasing a manufactured home decide the final timeline until you get the home. Moreover, it involves order placement, construction, shipment, and installation. Therefore it may take up to a few weeks or months.

  • Eco-Friendly

Manufactured homes can be an ideal step toward the environmental protection goal. According to the latest stats, construction waste is one of the leading causes of environmental damage. 

The carbon emission rates due to construction are at least 40%. These numbers are more than the ones associated with direct emissions from vehicles and aviation. 

When building their homes, most people hire professionals who know the construction details but aren’t necessarily aware of the follow-up process. The result is that these companies may not have proper waste disposal mechanisms. 

They dump a huge amount into the water bodies, contributing to various forms of pollution with a cascading effect. In the case of manufactured homes, the construction waste is comparatively lower. 

The company gets the material in bulk to build multiple manufactured homes. They carry out the process in a factory approved by the authorities. Therefore they follow the environmental code of conduct and rules which bind them to have good waste disposal options. 

These companies invest a large sum of money in raw materials. As such, they use them carefully to lower waste and maximize utility. Some companies also have green environment policies and campaigns, so when you select a manufacturer, choose wisely and ensure they align with your aim.

Manufactured Homes

For Investors

Are manufactured homes a good investment for entrepreneurs? They can be, depending on your plans. Manufactured housing holds a different value for investors. 

They intend to consider factors such as profits and sale value. Therefore, as an entrepreneur, if you ask yourself if manufactured homes are profitable, then the answer is yes. The following are some of the reasons for that.

  • Passive Income Source

Manufactured homes could be a lucrative opportunity if you intend to gather passive income. Manufactured homes do not require you to invest the same amount as the real estate market. However, you can reap somewhat similar benefits. 

Manufactured homes are cheaper to buy and, therefore, a good investment. You can buy these homes for a few hundred dollars. You can also purchase the land if it falls within your budget. Moreover, if you use funding options to get manufactured housing, they will give you profits. You can use these to make repayments and keep the rest.

  • Scalability

You can effectively upscale your manufactured home business by purchasing a mobile home park and starting an urban development initiative. At this site, you can install several manufactured homes. 

However, you must follow local building codes that vary according to the state. The parks should have at least 10 acres of area, and there should be barbed wires or boundaries to protect the residents. 

There should be a specific distance between the manufactured homes, which can range from 30 to 40 feet. The park should be away from the real estate property. Moreover, it should refrain from interfering with the site-built homes.

  • High Profits

Manufactured homes have high occupancy rates. The most appealing features are these homes’ lower rents and lower sale prices. Therefore your manufactured home park will instantly be filled with people. 

You can install units according to the family. Moreover, you can also include the utility bills in these rents. You can get a constant monthly passive income through manufactured homes. Moreover, you can also customize the manufactured home interior to attract more tenants. The occupancy rate of manufactured homes is more than 93% which guarantees profits.

Manufactured Homes

Are Manufactured Homes a Good Investment? – The Drawbacks

There are plenty of factors that vouch for manufactured homes as a good investment. However, people are usually skeptical when purchasing a mobile home. Mostly, these are large families that require more amenities. Nevertheless, the following are some of the major reasons why you may rethink your decision to invest in a mobile home.

  • Low Weather Resistance

Manufactured homes are durable enough to withstand storms or heavy rainfall. However, in case of more extreme climate changes, they might not be able to endure.

The most recent wave of hurricanes makes the manufactured home susceptible to damage as it does not have a permanent foundation. Constant heavy winds followed by rain can damage these homes.

Moreover, these homes have a defined elevation that protects them in case of floods. However, heavy water flow and constant flooding may damage the building materials of these manufactured homes. Therefore you might have to take extra measures to make your manufactured home hurricane or windproof.

  • Amenities

The facilities at a manufactured home are good for singles, couples, and small families. The space and the sections may need to be sufficient for your large families. Some people introduce certain modifications and customize a manufactured home according to their families. 

The costs of these changes can be high as they are absent in a company’s standard service. Therefore such conditions may make people reconsider the merits of a manufactured home as a good investment.


Are manufactured homes a good investment? It is a question people often ask and expect a simple answer. However, there are certain nuances and aspects of buying a manufactured home. 

Using low-funding options is prudent in the case of a manufactured home. These allow you to procure more profits through a manufactured home. Your strategies to utilize the manufactured home to make money or cut out expenses determine success. Therefore, always approach a manufactured home with a good profitable plan.

Are Modular Homes a Good Investment?

Paul Martinez

Paul Martinez is the founder of He is an expert in the areas of finance, real estate, and eCommerce.  Join him on to learn how to improve your financial life and excel in these areas. Before starting this blog, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.