Why the Midwest Remains Attractive for MHP Investors

Mobile home park investors typically focus on occupancy, rents, operating expenses, infrastructure, financing, and ultimately the property's net operating income. But another factor can have a significant impact on a long-term investment: the regulatory environment.

Across some areas of the country, rent-control laws can restrict an owner's ability to adjust rents even as property taxes, insurance, utilities, labor, and other operating expenses continue to increase.

Across the seven-state Mid-Plains Land & Realty footprint of Nebraska, Iowa, South Dakota, North Dakota, Kansas, Minnesota and Missouri, none currently imposes a statewide percentage cap on either mobile home park lot rents or ordinary residential rents charged for park-owned homes.

That doesn't mean rents are unregulated. Notice requirements, lease provisions, and other landlord-tenant laws vary by state. But there is an important difference between regulating how and when rent can be increased and establishing a government-mandated percentage ceiling on how much rent can increase.

For long-term investors, that distinction matters.

TOH vs. POH Rents

Mobile home parks can have two different rental relationships.

With a tenant-owned home (TOH), the resident owns the home and rents the lot from the park. These tenancies are often governed by laws specifically written for manufactured home communities.

With a park-owned home (POH), the park owns the home and rents the dwelling to the resident. These tenancies may instead fall under a state's general residential landlord-tenant laws.

Because of this distinction, requirements can differ within the same property. However, one advantage of the Midwest markets is that neither type of rent is currently subject to a statewide percentage-based rent cap across the seven states served by Mid-Plains.

A Review State by State

The following is a general overview of rent regulation as of September 2026. State and local laws can change, and individual leases, tenancy types, government programs, and local requirements may affect a particular property.

Nebraska

Nebraska has no statewide percentage cap on mobile home park lot rents or ordinary private residential rents.

For tenant-owned homes, Nebraska Revised Statute §76-1490 requires at least 60 days' written notice before a rent increase becomes effective.

Nebraska also generally prohibits local governments from imposing rent control on private property under §13-331, subject to limited exceptions involving certain affordable-housing programs and voluntary agreements.

Iowa

Iowa has no statewide percentage cap on mobile home park lot rents or ordinary residential rents.

For tenant-owned homes in manufactured home communities and mobile home parks, Iowa Code §562B.14(7) requires at least 90 days' written notice before a rent increase becomes effective. The increase cannot take effect before expiration of the existing rental agreement or a renewal or extension of that agreement.

Park-owned homes can instead fall under Iowa's general residential landlord-tenant law, making the distinction between TOHs and POHs important when planning rent adjustments.

South Dakota

South Dakota has no statewide percentage cap on mobile home park lot rents or ordinary residential rents.

Unlike some neighboring states, South Dakota does not have a separate statutory rent-increase provision specifically for tenant-owned homes in mobile home parks. For month-to-month tenancies, SDCL §43-32-13 generally allows a landlord to modify the rent or other lease terms with at least 30 days' written notice before the expiration of the month.

South Dakota also expressly prohibits local governments from controlling the amount of rent charged for privately owned residential property under SDCL §6-1-13.

This provides investors with considerable regulatory predictability regarding future rent levels, although lease terms and other landlord-tenant requirements still apply.

North Dakota

North Dakota has no statewide percentage cap on mobile home park lot rents or ordinary residential rents and prohibits rent control on privately owned property under NDCC §47-16-02.1.

North Dakota also has important rules specifically affecting mobile home parks. Under NDCC §47-10-28, month-to-month mobile home park tenants generally must receive at least 90 days' notice of a rent increase.

The same statute contains an acquisition-specific provision: if the previous owner increased a tenant's rent during the 60 days before ownership transferred, the purchaser generally cannot increase that tenant's monthly rental obligation for six months following the acquisition.

Kansas

Kansas has no statewide percentage cap on mobile home park or ordinary residential rents.

For tenant-owned homes in mobile home parks, Kansas Statute §58-25,109(f) requires at least 60 days' written notice before a rent increase becomes effective. The increase also cannot take effect before expiration of the original rental agreement or a renewal or extension.

Kansas also generally prohibits political subdivisions from imposing rent control on privately owned residential or commercial property under §12-16,120, subject to limited exceptions.

Minnesota

Minnesota currently has no statewide percentage cap on mobile home park lot rents or ordinary residential rents.

For tenant-owned homes in manufactured home parks, Minnesota Statute §327C.06 requires at least 60 days' written notice of a rent increase and limits a park owner to two rent increases during any 12-month period.

Minnesota deserves additional attention because §471.9996 permits local rent control under certain circumstances when approved in a general election. Investors should therefore review local regulations when evaluating a Minnesota property.

Minnesota has also seen legislative proposals aimed at placing additional restrictions on manufactured home park rent increases. While those proposals should not be confused with current law, they are worth monitoring.

Missouri

Missouri has no statewide percentage cap on mobile home park lot rents or ordinary residential rents.

Under Missouri Revised Statute §441.043, counties and cities generally cannot regulate the amount of rent charged for privately owned residential or commercial rental property, subject to limited exceptions involving certain government-owned, subsidized, or assisted properties.

As in the other states, applicable lease terms and landlord-tenant requirements still need to be considered.

No Rent Control Doesn't Mean Unlimited Rent Growth

The absence of a statutory rent cap does not automatically make a rent increase realistic.

Market rent is still market rent.

If a community is charging $350 per month while comparable parks consistently achieve $475 to $550, there may be meaningful embedded upside.

But if a community is already charging $500 in a market where comparable properties are also around $500, the absence of rent control doesn't suddenly mean the market will support $750.

After all, there is a significant difference between regulatory room to increase rent and market support for a rent increase

This distinction also matters when valuing a property. A seller may see below-market rents as an existing value. A buyer may see them as future upside that still requires proper notice, time, execution, and resident-retention risk.

The regulatory environment determines whether that upside can legally be pursued. The market determines whether it can realistically be achieved.

A Midwest MHP Investment Advantage

Mobile home parks are typically viewed as long-term investments. During a ten- or twenty-year ownership period, property taxes, insurance, utilities, maintenance, and labor costs are all likely to increase.

The ability for an owner to respond to those changing expenses and market conditions can therefore have significant long-term value.

Across the seven states served by Mid-Plains Land & Realty, there is currently no statewide percentage-based rent cap on either mobile home park lot rents or ordinary residential rents for park-owned homes.

That doesn't eliminate regulation or the need for responsible ownership. Nor should investors build acquisition models around aggressive or unsupported rent increases.

What it does provide is greater flexibility for owners to respond to market conditions without a statewide formula automatically determining a property's future revenue potential.

Combined with relatively affordable acquisition prices, stable communities, and continued demand for affordable housing, that regulatory flexibility is another reason the Midwest remains an attractive market for long-term mobile home park investment.