National Picture
Where the market stands heading into 2025
RV park cap rates nationally have compressed by roughly 150 to 200 basis points since 2020. What traded at 10 to 12% five years ago now trades at 8 to 10% in most markets, driven by a surge in institutional buyers — private equity firms, REITs, and family offices — who entered the RV park space in earnest between 2021 and 2023.
That compression has slowed but not reversed. Higher interest rates in 2023 and 2024 put modest upward pressure on cap rates as buyers demanded more yield to offset higher borrowing costs. The result in 2025 is a market where good parks in strong locations still trade at historically tight cap rates, while marginal properties have seen rates widen back toward 2019 levels.
For sellers, this still represents a historically favorable exit environment. For buyers, the margin for error on acquisition pricing is thinner than it was five years ago — which makes rigorous underwriting more important, not less.
National cap rate trend — stabilized parks (2020–2025)
By Park Type
Cap rates vary significantly by what type of park you're buying
The cap rate a buyer applies isn't just about location — it's about the risk profile and operational complexity of the specific park type. A premium destination resort near a national park commands a very different multiple than a highway transient park on the outskirts of a small Midwestern city.
| Park Type | 2025 Cap Rate Range | Trend vs. 2023 | Key Driver |
|---|---|---|---|
| Premier destination resort Coastal, national park adjacent, branded |
6.0% – 7.5% | → Stable | Institutional demand, supply constraint, brand value |
| Strong regional destination Lakes, state parks, tourist corridors |
7.5% – 8.5% | → Stable | Occupancy stability, amenity investment, repeat guests |
| Mid-market mixed-use Transient and long-term blend, suburban |
8.5% – 10% | ↑ Slight expansion | Rate sensitivity from higher financing costs |
| Long-term resident community Monthly tenants, stable but regulated |
8.0% – 9.5% | → Stable | Income predictability offset by rent control risk in some states |
| Highway transient / overnight Short-stay, seasonal, limited amenities |
9.5% – 11.5% | ↑ Modest expansion | Occupancy volatility, commoditized product, limited upside |
| Value-add or distressed Deferred maintenance, compliance issues |
10.5% – 14%+ | ↑ Expanding | Risk premium for capital needed, smaller buyer pool |
The gap between a 7% and a 10% cap rate on a park with $200,000 NOI is the difference between a $2.86M valuation and a $2M valuation — an $860,000 swing on the same income. That gap is why operational improvements, clean permits, and good financial documentation all translate directly into real dollars at the closing table.