DSCR Loans for RV Parks and Campgrounds

RV parks and campgrounds are having a moment. RV ownership in the U.S. hit 11.2 million households in 2025, up from 9.6 million in 2020. The outdoor hospitality industry generated $28 billion in revenue last year. And unlike hotels, RV parks have lower overhead, simpler operations, and a customer base that's growing across every age demographic.

For investors, the challenge has always been financing. Traditional banks don't know how to underwrite a campground. SBA loans work but are slow and documentation-heavy. DSCR loans offer a middle path: qualify on the property's income, close in 30–45 days, and skip the tax return deep-dive.

Here's how it works.

Why RV Parks Are Attractive Investments

The fundamentals are straightforward:

• Low cost per revenue-generating unit. A basic RV site costs $5,000–$15,000 to develop (pad, hookups, utilities). Compare that to $150,000+ per hotel room or $200,000+ per apartment unit.
• Recurring revenue. Monthly and seasonal tenants provide baseline income. Nightly guests add margin.
• Low staffing requirements. A 50-site park can operate with 2–3 employees. A 100-site park might need 4–6. Compare that to a hotel of similar revenue.
• Multiple revenue streams. Site rentals, laundry, camp store, propane, firewood, event space, boat rentals, Wi-Fi fees — ancillary income adds 15–30% on top of site revenue.
• Growing demand. Remote work has extended the travel season. Digital nomads living in RVs year-round represent a new long-term tenant pool.

The cap rates are compelling too. Well-run RV parks trade at 8–12% cap rates in secondary markets, compared to 4–6% for comparable multifamily properties.

How DSCR Loans Work for RV Parks

DSCR loans evaluate the property's ability to service debt from its own income:

DSCR = Net Operating Income ÷ Annual Debt Service

For RV parks, most lenders require a minimum DSCR of 1.25. The higher threshold reflects seasonality risk — most parks see significant revenue fluctuation between peak and off-peak months.

Typical Loan Parameters

LTV tends to be lower than standard residential DSCR loans because RV parks are classified as commercial or specialty use properties. Appraisals also require an income approach and comparable sales, and RV park comps can be thin in some markets.

Revenue Models: Understanding How RV Parks Make Money

The revenue mix determines your DSCR. Here's how the different models break down:

Nightly/Transient Sites

• Rate: $35–$85/night depending on location and amenities
• Occupancy: 40–70% annually (heavily seasonal)
• Highest revenue per site but least predictable
• Require more management (check-ins, turnovers, cleaning)

Monthly/Long-Term Sites

• Rate: $500–$1,200/month with full hookups
• Occupancy: 85–95% year-round
• Lower per-site revenue but extremely stable
• Minimal management overhead

Seasonal Sites

• Rate: $2,500–$6,000 for a 5–7 month season
• Common in snowbird markets (Florida, Arizona, Texas) and summer destinations
• Predictable revenue with built-in vacancy during off-season

Combination Model

Most profitable parks run a mix. A 100-site park might have 40 monthly sites, 30 seasonal sites, and 30 transient sites. The monthly and seasonal sites cover debt service; the transient sites provide margin.

Running the Numbers on a Real Deal

Property: 60-site RV park in central Florida Purchase price: $1,800,000 Site mix: 25 monthly, 15 seasonal, 20 transient

Revenue:

• Monthly sites: 25 × $750/month × 12 × 92% occupancy = $207,000
• Seasonal sites: 15 × $4,500/season × 100% = $67,500
• Transient sites: 20 × $55/night × 365 × 55% occupancy = $220,825
• Ancillary income (store, laundry, propane): $42,000
• Total annual revenue: $537,325

Operating expenses:

• Staffing (3 employees): $126,000
• Utilities: $48,000
• Insurance: $18,000
• Property taxes: $22,000
• Maintenance and grounds: $36,000
• Marketing: $12,000
• Management fee (8%): $42,986
• Reserves for capital expenditure: $24,000
• Total expenses: $328,986

Net Operating Income: $208,339

Debt service on $1,350,000 loan (75% LTV) at 7.75%, 25-year amortization:

• Monthly payment: $10,244
• Annual debt service: $122,928

DSCR = $208,339 ÷ $122,928 = 1.69

That's a solid ratio with room for revenue decline before debt coverage becomes an issue.

The Seasonality Problem and How Lenders Handle It

Seasonality is the biggest concern lenders have with RV parks. A park in Michigan that does 80% of its revenue between May and October looks very different from a year-round park in Texas.

How to address this:

• Show 24 months of bank statements. Two full annual cycles prove the pattern is predictable and repeatable.
• Demonstrate off-season coverage. Can your monthly tenants alone cover debt service during the slow months? If yes, that eliminates the lender's biggest concern.
• Maintain reserves. Lenders often require 6–12 months of debt service reserves for seasonal properties. Build this into your acquisition cost.
• Diversify revenue timing. Holiday events, winter camping packages, and storage rentals can smooth out seasonal dips.

Upgrading Parks to Improve DSCR

One of the best investment strategies in the RV park space is buying underperforming parks and improving them. Common value-add plays:

• Add full hookups to partial-hookup sites. A site with water, sewer, and 50-amp electric rents for 30–50% more than a water-and-electric-only site. Cost: $3,000–$8,000 per site.
• Add Wi-Fi. Not optional anymore. RV travelers expect connectivity. A mesh Wi-Fi system for a 50-site park costs $5,000–$15,000 to install.
• Improve amenities. Pool, bathhouse upgrades, dog park, playground. These justify higher nightly rates and improve reviews (which drive transient bookings).
• Convert from seasonal to year-round. If climate and infrastructure allow, extending the operating season from 7 months to 12 months can nearly double revenue.
• Add glamping units or cabins. Rental cabins generate $100–$200/night and attract non-RV customers, expanding your market.

After stabilizing improvements, you can refinance into a new DSCR loan at the higher appraised value, pull out capital, and repeat.

Common Pitfalls Investors Miss

• Environmental issues. Older parks may have underground fuel tanks, septic systems that don't meet code, or flood zone exposure. Phase I environmental assessments are mandatory.
• Zoning. RV parks often have conditional use permits. Verify that the zoning allows your intended use and that the permit transfers with the sale.
• Deferred maintenance on infrastructure. Water lines, sewer systems, and electrical infrastructure in older parks can need $100,000+ in repairs. Inspect everything underground, not just what's visible.
• Online reputation. Google and Campendium reviews directly impact transient bookings. A park with a 3.2-star rating will underperform a 4.5-star park in the same market, regardless of amenities.
• Utility cost exposure. Some parks sub-meter utilities to tenants. Others include utilities in the site rent. The difference in operating expense is enormous. Verify how utilities are handled before underwriting.

Due Diligence Checklist for DSCR Financing

Before applying for a DSCR loan on an RV park:

1. Gather 24 months of P&L and bank statements from the current operator
2. Get a Phase I environmental assessment
3. Inspect all underground infrastructure — water, sewer, electrical
4. Verify zoning and conditional use permits
5. Review the site map — are there expansion opportunities?
6. Check flood zone status and insurance requirements
7. Analyze the revenue mix — what percentage is monthly vs. transient?
8. Review online reputation on Google, Campendium, Good Sam, and Hipcamp
9. Confirm utility metering and cost allocation
10. Assess local competition — are new parks planned within 20 miles?

Frequently Asked Questions

Can I get a DSCR loan for a campground with no RV hookups?

It's harder. Tent-only campgrounds or primitive campgrounds have lower revenue per site and more seasonality. Most DSCR lenders prefer parks with full hookup sites because the revenue is higher and more predictable. Some will consider a mix.

What's the minimum number of sites for DSCR financing?

Most lenders want at least 20–30 sites. Smaller parks are harder to finance because the revenue base is thin and the appraisal comparable sales are limited. Parks with 50+ sites are the sweet spot.

Do DSCR lenders count ancillary income (store, propane, etc.)?

Yes, most do — but they may haircut it. A lender might count 100% of site rental income but only 75–80% of ancillary income because it's more variable. Ask your lender specifically how they treat non-rental revenue.

Can I use a DSCR loan to buy vacant land and develop an RV park?

No. DSCR loans require existing income. You'd need a construction or land loan to develop, then refinance into a DSCR loan once the park is operating and stabilized (typically 12–24 months of operations).

How does an appraiser value an RV park?

Primarily using the income approach — capitalization of NOI. They'll also look at comparable sales, but RV park comps are often limited. The income approach carries the most weight, which means your trailing 12-month financials directly impact your appraised value.

Are mobile home parks and RV parks financed the same way?

Similar but not identical. Mobile home parks with tenant-owned homes are generally easier to finance because tenants are more permanent. RV parks with transient guests are seen as more operational. Some lenders specialize in one or the other.

The Bottom Line

RV parks and campgrounds combine strong cash flow with manageable operations and a growing customer base. DSCR loans let you finance based on what the park earns, which often tells a much better story than your personal tax returns.

The key is understanding that lenders see seasonality and operational complexity as risk factors. Counter that with strong financials, 24 months of operating history, and a diversified revenue mix, and you'll find DSCR financing accessible and efficient.

Looking at an RV park or campground deal? Run your numbers with HonestCasa — we'll help you figure out if the DSCR works and connect you with lenders who know the space.