What's depreciable in a mobile home park
Like all real property, the land itself is not depreciable. In a mobile home park, land often represents a large share of purchase price because the mobile homes are tenant-owned. The depreciable improvements typically include: concrete pads and hookups; roads and driveways; utilities infrastructure (water, sewer, electric, gas lines); perimeter fencing; a rental or management office; and any park-owned structures.
If the park owns the mobile homes and rents them to tenants, those homes may be depreciable as personal property — typically over 5 or 7 years — or as residential rental property if they are permanently affixed.
Recovery periods: 5, 7, 15, or 39 years
A cost segregation study on a mobile home park typically finds: 15-year land improvements (roads, parking, landscaping, utility distribution lines, fencing); 7-year personal property (certain tenant amenities); and 39-year nonresidential real property for permanent structures like a rental office or laundry building. Concrete pads and utility service connections may be 15-year or 39-year depending on their nature.
With 100% bonus depreciation available for property with a 20-year or shorter MACRS life, land improvements classified as 15-year property can be fully expensed in year one — a meaningful benefit given the high proportion of infrastructure cost in a mobile home park.
Land allocation is critical
Because mobile home parks are often land-intensive, the land-vs-improvement split dramatically affects how much of the purchase price can be depreciated. An independent appraisal or cost segregation study is the most defensible method. The county assessor's ratio (used for property tax) is sometimes used as a starting point but should not be relied upon exclusively for federal income tax purposes.
Frequently asked questions
Are the mobile homes themselves depreciable?
Only if the park owns them. Tenant-owned homes are the tenant's property. Park-owned mobile homes may qualify as personal property (5 or 7 years) if not permanently affixed, or as residential rental property if permanently installed on a foundation.
Does bonus depreciation apply to mobile home park improvements?
Yes — 15-year land improvements like roads, fencing, and utility lines qualify for 100% bonus depreciation (effective for qualifying property placed in service after January 19, 2025 under the One Big Beautiful Bill Act).
How do I determine the land value for a mobile home park?
An independent appraisal is the most defensible approach. County assessor values, comparable sales, and cost-segregation engineers' allocations are all commonly used as supporting evidence.
Sources
Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.