Financial projections are possibly the most important thing to look at if you considering buying a modular home. Whether you are planning on renting it out or just increase your home value, finding the right data points are important.
We’ve found those numbers for you.
We’ve taken a look at the data and found the best and worst places to rent a modular home in the US. This takes into account the median cost of mortgages and the median income made on Airbnb. These numbers are based on owning the property and not a rent subsidized or rent arbitraged relationship.
TLDR: when renting a modular home, Oakland is the worst city and Sonoma is the best city.
We wanted to find if renting a modular home was better as a long-term or short-term rental. What we found was short-term rentals made up to 3x more than long-term rentals. In some cities, short-term rentals made up to 5x more.
These numbers reflect the findings from a study done by Airdna.
Worst places to rent modular homes
Oakland is an upcoming city for its great restaurants, breweries, transportation, and walkability. As any city neighboring a top metropolitan city like San Francisco (Cost of living 3rd highest in USA), the high costs follow. The Median home cost in Oakland is $758,800, which puts Oakland’s mortgage at a national high.
Fun fact about Oakland, it is said to have inspired the Disneyland theme park.
Estimated income on Airbnb: $3,430/month
Average Mortgage: $6,214/month
New York, NY
New York has the highest cost of living, which is obvious given the demand in the biggest city in the US. The housing market is equally as big as the city. In Manhattan, the average rent is $3,000/month. Only in San Francisco, would you find a higher average rent. Even in the cheapest neighborhoods like Inwood, residents have reported paying an average of $1,623 a month.
Fun fact about New York, there is a birth in NYC every 4.4 minutes
Estimated income on Airbnb: $4,366/month
Average Mortgage: $5,583/month
Los Angeles, CA
Los Angeles falls at #13 highest cost of living in the US. To live in LA, financial advisors suggest to find a salary of at least $74,371 per year. As the housing market commands a higher rent, you can find yourself renting a modular home for a bit higher than most cities.
Fun fact about Los Angeles, there are 135 different languages spoken.
Estimated income on Airbnb: $4,213/month
Average Mortgage: $5,167/month
Seattle hits #8 at highest cost of living. It is also recognized as the #9 best places to live. The modular home market is growing in Seattle and makes for an average profit of $4,040.
Fun fact about Seattle, it was originally called New York but not many people know why.
Estimated income on Airbnb: $4,040/month
Average Mortgage: $3,661/month
Good cities to rent modular homes
Boston sits at #7 as the highest cost of living cities. The airbnb market is prime for renting a modular home in Boston as the numbers show an estimated income of $5,748/month.
Fun fact about Boston, the oldest public park in the USA is in Boston.
Estimated income on Airbnb: $5,748/month
Average Mortgage: $3,948/month
Austin is ranked 39 in the most expensive cost of living. However, Austin is currently rated as the “#1 in Best Places to Live” as ranked by U.S. News. This demand also makes Austin a place where you can command a greater price for your rental.
Weird fact about Austin, it has the largest bat colony in an urban center throughout North America.
Estimated income on Airbnb: $4,466/month
Average Mortgage: $2,082/month
New Orleans, LA
The median price of homes that sold in the New Orleans real estate market is $232,900 and the values of homes are expected to rise 2.6% within the next year. New Orleans is a prime city for investment. Airbnb was officially legalized in the New Orleans real estate market in 2016.
Fun fact about New Orleans, New Orleans is where the first opera was performed in the U.S., back in 1796.
Estimated income on Airbnb: $4,075/month
Average Mortgage: $1,449/month
Charleston is a hot market as it is named the #45 Best Places to Live. The rental numbers can speak for themselves about the demand to live in Charleston.
Fun fact about Charleston, Charleston’s first baseball team was the Sea Gulls
Estimated income on Airbnb: $5,203/month
Average Mortgage: $2,121/month
Scottsdale ranks #26 in the Best Places to Live in the US. With the large tourism draws, people come to Scottsdale for the golf courses, fancy resorts, night life, and the long days of sunshine.
Fun fact about Scottsdale, there are over 200 golf courses in the city and surrounding areas.
Estimated income on Airbnb: $5,121/month
Average Mortgage: $1,934/month
The best cities to rent modular homes
Nashville is ranked #15 best places to live and the cost of living lands at #44 highest cost of living. As one of the best places to rent on airbnb and the cost of living being reasonable, you can command a desirable profit.
Fun fact about Nashville, Nashville was founded on Christmas Eve 1779.
Estimated income on Airbnb: $5,580/month
Average Mortgage: $1,644/month
Anaheim is just one of the cities that is benefitting from California’s new laws allowing for ADUs. Anaheim doesn’t have the same high costs of living as other California cities and the average mortgage is comparably low.
Fun fact about Anaheim, Gwen Stefani, the lead singer of No Doubt is from Anaheim.
Estimated income on Airbnb: $6,806/month
Average Mortgage: $2,728/month
Palm Springs, CA
Palm Springs is an investors paradise when it comes to renting. Since land is relatively cheaper than other major cities in California, you might find a cluster of modular homes being the best investment.
Estimated income on Airbnb: $7,417/month
Average Mortgage: $1,922/month
Fun fact about Palm Springs, it has more pools per capita than anywhere else in the country.
Islands are great for tourism but hard to transport a modular home. Hawaii is one state that is harder to get a modular home transported. This is because modular homes are typically fully assembled and as such, they require special transportation traveling at sea.
Fun fact about Koloa, Koloa coffee is the largest coffee plantation in the United States and Kauai grows more taro than any other island
Estimated income on Airbnb: $8,664/month
Average Mortgage: $3,151/month
Sonoma is our number one best investment for modular home rentals. Renters are making upwards of $10,000 a month on Airbnb. Buying a modular home and renting can be a deeply profitable investment.
Fun fact about Sonoma, Sonoma County produces 6% of all the wine available from California.
Estimated income on Airbnb: $9,636/month
Average Mortgage: $3,552/month