RV Park Cap Rates by State: 2026 Investor Guide

Cap rate — the ratio of net operating income to purchase price — is the single most important number in RV park investing. It tells you what return you're getting on the property's value, and it varies dramatically depending on where the park is located.

This guide breaks down RV park cap rates by state and region, explains what drives the differences, and helps you identify where the best opportunities are in 2026.

Quick Refresher: What Is a Cap Rate?

Cap Rate = Net Operating Income (NOI) ÷ Purchase Price

A 10% cap rate means you're earning 10% on the property value annually from operations. Higher cap rates mean higher returns (but usually higher risk). Lower cap rates mean lower returns (but usually lower risk and better locations).

For RV parks nationally, cap rates in 2026 range from about 7% for premium resort properties to 14%+ for rural, value-add parks.

RV Park Cap Rates by Region

Southeast (FL, GA, AL, SC, NC, TN, MS, LA, AR)

Typical cap rate range: 8-12%

The Southeast is the biggest RV park market in the country. Florida alone has over 1,800 RV parks. Year-round demand from snowbirds drives strong occupancy, especially for parks with seasonal/monthly sites.

State	Typical Cap Rate	Notes
Florida	8-10%	High demand, premium locations. Coastal parks trade tightest.
Texas	9-12%	Huge state with wide variance. DFW/Austin suburbs tighter; rural West TX wider.
Tennessee	9-11%	Smoky Mountain tourism parks do well. Seasonal demand.
Georgia	9-12%	North Georgia mountains and coastal areas strongest.
South Carolina	9-11%	Myrtle Beach corridor parks are premium.
North Carolina	9-11%	Blue Ridge and Outer Banks drive seasonal demand.
Alabama	10-13%	Gulf Coast parks have best returns. Interior is cheaper.
Mississippi	11-14%	Lower demand, higher cap rates, more value-add opportunities.
Louisiana	10-13%	Oil field workforce parks trade differently than tourist parks.
Arkansas	10-13%	Ozarks tourism growing. Good value-add market.

Southwest & Mountain West (AZ, NM, CO, UT, NV, MT, WY, ID)

Typical cap rate range: 8-13%

State	Typical Cap Rate	Notes
Arizona	8-11%	Snowbird destination. Phoenix/Tucson metro parks trade tight.
Colorado	8-11%	Mountain resort parks are premium. Eastern plains are wider.
Utah	9-11%	National park tourism parks (Moab, Zion area) command premiums.
Montana	9-12%	Glacier/Yellowstone gateway parks do well seasonally.
Idaho	9-12%	Growing market. Boise area tightening.
Nevada	9-12%	Vegas-adjacent parks have steady demand. Rural is wider.
New Mexico	10-13%	Smaller market. Good value-add potential.
Wyoming	9-12%	Yellowstone/Tetons seasonal demand. Short season.

Midwest (OH, IN, MI, WI, MN, IA, MO, IL, KS, NE, SD, ND)

Typical cap rate range: 10-14%

The Midwest is where you find the highest cap rates. Land is cheap, competition is lower, and parks often trade well below replacement cost. The tradeoff is shorter seasons (May-October) and lower absolute revenue.

State	Typical Cap Rate	Notes
Michigan	10-13%	Lake country parks have strong seasonal demand.
Wisconsin	10-13%	Dells area parks are premium. Northern lakes do well.
Missouri	10-13%	Lake of the Ozarks area drives tourism.
Ohio	10-13%	Solid market. Amish country/Lake Erie have niche appeal.
Minnesota	10-13%	10,000 lakes = lots of RV park opportunities. Short season.
Indiana	11-14%	More affordable market. Good for first-time buyers.
Iowa/Kansas/Nebraska	11-14%	Highest cap rates, lowest prices. Serious value-add territory.

Pacific West (CA, OR, WA)

Typical cap rate range: 7-10%

West Coast parks trade at the lowest cap rates in the country. High land values, strong year-round demand, and limited new supply keep prices elevated.

State	Typical Cap Rate	Notes
California	7-9%	Tightest cap rates nationally. Coastal parks are institutional quality.
Oregon	8-10%	Coast and Bend area parks trade tight. Eastern OR is wider.
Washington	8-10%	San Juan Islands, Olympic Peninsula parks are premium.

Northeast (NY, PA, NJ, CT, MA, ME, VT, NH)

Typical cap rate range: 8-12%

State	Typical Cap Rate	Notes
Pennsylvania	9-12%	Poconos and Amish country parks have established demand.
New York	8-11%	Adirondacks, Catskills, Finger Lakes drive tourism.
Maine	9-12%	Coastal parks premium. Short season but high rates.
New Hampshire/Vermont	9-12%	Leaf peeper season + skiing gives longer effective season.

What Drives Cap Rate Differences?

Cap rates aren't random. They reflect the market's assessment of risk and return. The main drivers:

• Season length. Year-round parks (Florida, Arizona, Texas) command lower cap rates because revenue is more predictable. Parks with 5-month seasons (Upper Midwest, Northeast) have higher cap rates to compensate for the off-season risk.
• Tourism demand. Parks near national parks, beaches, mountains, or major attractions have more reliable demand. More demand = lower risk = lower cap rate.
• Population growth. States with growing populations (Texas, Florida, Idaho, Tennessee) have tightening cap rates as demand increases and new buyers enter the market.
• Regulatory environment. States with easier permitting for expansion or new development (Texas, Florida, most Southern states) tend to have slightly higher cap rates because supply can respond to demand. Highly regulated states (California, Oregon) restrict new supply, keeping values high and cap rates low.
• Buyer competition. Markets where institutional buyers (REITs, private equity) are active see compressed cap rates. Most institutional activity is in Florida, California, Texas, and Colorado.

Where Are the Best Opportunities in 2026?

The "best" market depends on your goals:

For highest cash-on-cash returns: Look at the Midwest and Deep South — Indiana, Iowa, Missouri, Mississippi, Arkansas. Cap rates of 11-14% mean strong cash flow from day one, especially with seller financing. These parks are often owned by retiring couples who are open to creative deal structures.

For appreciation and stability: Florida, Texas, and Colorado have strong population growth driving land value increases. You'll buy at tighter cap rates (8-10%), but the total return including appreciation often exceeds high-cap-rate markets.

For value-add opportunities: Look for parks with high cap rates in otherwise decent markets. A 13% cap rate park in Tennessee or Michigan might just need better marketing, a website, online booking, and some cosmetic improvements to operate like an 8-10% cap rate park.

For first-time buyers: Mid-tier markets like Tennessee, Georgia, Missouri, and Pennsylvania offer a balance of reasonable pricing, decent demand, and enough deal flow to find opportunities. Avoid California and Florida for your first deal — too expensive, too competitive.

Cap Rate ≠ Cash-on-Cash Return

A critical distinction many new investors miss: cap rate measures the return on the property's total value. Cash-on-cash return measures the return on your actual cash invested.

With seller financing or leverage, your cash-on-cash return will be significantly higher than the cap rate. A 10% cap rate park bought with 10% down and seller financing at 5.5% might yield a 20-30% cash-on-cash return.

This is why creative financing is so powerful — it lets you buy in lower-cap-rate markets (better locations, more stable income) and still achieve high cash-on-cash returns through leverage.

The Bottom Line

Cap rates tell you what the market thinks a property is worth relative to its income. They vary dramatically by state and region, driven by season length, demand, population growth, and buyer competition.

Don't chase the highest cap rate blindly — a 14% cap rate park in the middle of nowhere might have occupancy risk that justifies the high rate. And don't avoid lower cap rate markets — with the right deal structure, an 8% cap rate park in a growing market can deliver exceptional total returns.

The key is understanding why the cap rate is what it is, and making sure it compensates you fairly for the risk.