POH Ratio Explained: Why Park-Owned Homes Break MHP Loans

POH — park-owned homes — is the term for mobile homes that the park owner owns and rents out as a unit, rather than renting only the lot underneath a tenant-owned home. POH ratio is the percentage of a park's lots occupied by park-owned homes.

Agency lenders (Fannie MHC, Freddie MHC) and most CMBS programs cap POH concentration at 20%. The reason is collateral: park-owned homes are personal property (chattel), not real estate, so they are not part of the lender's collateral package. A park that depends on POH revenue is, from the lender's perspective, partly a rental-housing business sitting on a smaller piece of real estate.

For acquirers, this means a 40%-POH park doesn't qualify for agency debt without a conversion plan. The right underwriting move is to re-base NOI on a lot-rent-only basis — strip out POH rent, strip out POH expenses, and see what the deal looks like as pure land collateral. Then layer the POH revenue back in as upside, not base case.

Full guide coming soon. Want a POH-adjusted DSCR on a specific park today? Run a free screening — the report flags POH ratio and re-bases NOI automatically.