Compare Rent vs.Site-Built vs. Manufactured Home Costs

One of the many advantages of buying a manufactured home is the cost compared to both site-built homes and apartment rentals. For starters, manufactured homes typically have more space and more amenities for the dollar compared to site-built homes and apartment rentals. On top of that, rental rates in most markets are rising at an alarming rate.

Manufactured homes typically cost less than site-built homes, both on a square-foot basis and in total. Manufactured homes cost half as much per square foot than new site-built housing construction. The average consumer sales price for a new single-section manufactured home was about $86,100 in 2022, and the average price of a new multi-section manufactured home was about $158,633.

Here’s a typical scenario. For a chattel loan of $86,000 with a $8,000 down payment and 10.5 percent interest rate over 25 years for a three bedroom, two bathroom manufactured home, the monthly payment would be $736.46. The closing costs for this loan would be between $1,000 and $1,500 depending on the state, the lender and your credit profile. The site rent would be $650.00, for a total housing payment of $1,386.46.

Compare that to the average adjusted rent for a two-bedroom apartment of $1,849 per month in a market like Minneapolis/St. Paul, MN.

For a $413,160 site-built home in the same market with a 10 percent down payment of $41,316, the loan amount would be $371,844. At a 7 percent interest rate over 30 years, the monthly payment amount would be $2,506. The closing costs for this loan would be between $4,000 and $5,000 depending on the state, the lender and your credit profile.

In this example, the manufactured home is the most affordable option.

Advantage: Manufactured Homes

Buying a home is often the biggest investment most people will make. It is critical to know what you can afford, what your needs are, and how your decisions will affect you – not just now, but in the years ahead as the housing market changes.

The same factors that determine the value of a site-built home determine the value of a manufactured home: the location, the local market conditions and the quality of the home and the amenities.

One of the major advantages of manufactured homeownership is the chance to build equity, but at a lower cost than site-built homes. Renters pay rent each month with every dollar going to the landlord.