The $1,200 Question: About Modular Homes

I recently saw a listing for an older modular in a charming New Hampshire town. The price seemed reasonable, but the HOA fee was unbelievably high. To find out the answer, I went to view the property and had a chat with the listing agent. And here is the story:

The home itself was a pleasant surprise. Clean. Solid. Clearly loved by the current owners. No sagging corners, no DIY disasters. You could tell someone had taken good care of this place for years.

The new owner of the park had raised the HOA fee to over $1200/m for new buyers only. Existing residents still paid around $700 per month.

No new amenities. No major repairs planned. Just a number on a spreadsheet, doubled because a new investor wanted to protect their own interest.

The agent wasn’t trying to hide anything. She was genuinely stuck. And she was trying to find a listing price that reflected a home whose carrying cost had just jumped from $700 to $1,200 for the next owner.

I felt their pain. Both of them. And here’s why that fee kills sales value:

According to Bankrate’s mortgage calculator, every $100 in monthly HOA fees reduces a buyer’s purchasing power by roughly $16,200. That $500 difference? It shaves about $81,000 off what someone can qualify for or is willing to pay.

So a modular home that might have sold for $200,000 under the old $700 fee now competes against stick-built homes in lower-fee communities. Buyers do the math. Then they walk.

In many modular home communities, especially where residents lease the land, the owner holds significant power. When a private equity firm or land investor buys the community, they often reset the base rent for new buyers to “market rate.” New Hampshire has limited protections for manufactured housing communities. Without a resident-owned cooperative or local rent control, landowners can legally charge different rates to different tenants.

The result is a two-tiered system that punishes new buyers and destroys resale value.

If you’re looking at a modular home community:

Ask about fee structures for new versus existing owners. Never assume uniformity. Check community ownership. Resident-owned communities （ROCs） offer far more stability.

Know New Hampshire’s Manufactured Housing Act. It provides some notice requirements but doesn’t ban differential pricing for new buyers.

The sellers didn’t cause this. The listing agent didn’t cause this. But they’re the ones left holding the pieces, trying to find a price that isn’t unfair to them but isn’t impossible for a buyer.

Next time you see a modular home listed at a surprisingly low price in a nice town, don’t assume it’s a bargain. Ask about the HOA fee.

And ask if you’d pay the same as the neighbor two doors down. The answer might double your monthly budget.