The Numbers That Matter More Than Cap Rate Cap rate is one of the first numbers investors look at when evaluating a mobile home park. And for good reason. It provides a quick snapshot of what a property is producing today. But a cap rate only tells part of the story. It shows the current return based on current income and expenses. It does not reveal whether that income is sustainable over the long term. The deeper questions are: Are residents consistently paying their rent? Is the occupancy supported by a stable resident base? Are expenses truly under control? Can rents continue growing without creating affordability pressure? Are residents staying long enough to protect long-term cash flow? These are the numbers that determine whether a community performs years after acquisition. A high cap rate can look attractive on paper. But if collections are weak, turnover is increasing, or expenses are underestimated, the initial yield may not reflect the true performance of the asset....