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Park Model Homes vs. ADUs – Which is the Better Choice?

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The demand for affordable and flexible housing options has been on the rise, leading many homeowners and investors to consider Park Model Homes (PMHs) and Accessory Dwelling Units (ADUs). 

Both offer unique benefits and drawbacks depending on your needs, budget, and zoning regulations. In this article, we will compare Park Model Homes vs. ADUs to help you determine which option is best for you.

FeaturePark Model HomesAccessory Dwelling Units (ADUs)
MobilityCan be relocatedPermanent, built on-site
Legal ConsiderationsClassified as an RV, zoning restrictions applyRequires permits and follows local building codes
CostLower upfront cost, but depreciatesHigher cost but adds property value
UtilitiesNeeds RV hookupsFully integrated with home infrastructure
CustomizationLimited design flexibilityHighly customizable
Investment ValueDepreciates over timeIncreases property value

What Are Park Model Homes?

Definition and Features

Park Model Homes are semi-permanent tiny homes built on a chassis, designed for temporary or seasonal living. Unlike traditional mobile homes, they are typically under 400 sq. ft. and built according to ANSI A119.5 standards.

Key Characteristics

  • Compact and efficient design
  • Easier to transport compared to traditional homes
  • Ideal for vacation homes, rentals, or retirement living

Common Uses

  • Vacation homes in RV parks or private land
  • Short-term rentals (Airbnb, VRBO, etc.)
  • Affordable housing for retirees

What Are ADUs (Accessory Dwelling Units)?

Definition and Purpose

ADUs are permanent secondary housing units built on the same property as the main house. They can be detached, attached, or converted from existing structures (e.g., garages or basements).

Types of ADUs

  • Detached ADUs – Standalone unit in the backyard
  • Attached ADUs – Connected to the main house
  • Garage/Basement Conversions – Existing space repurposed into a living area

Common Uses

  • Rental properties for additional income
  • Housing for aging parents or adult children
  • Home offices or guesthouses

Pros and Cons of Park Model Homes

Pros

  • Lower upfront cost compared to ADUs
  • Mobility – Can be relocated if needed
  • Quick setup – Fewer permitting requirements
  • Great for seasonal or rental use

Cons

  • Zoning restrictions in many areas
  • Depreciates over time (unlike real estate)
  • Limited customization compared to ADUs
  • Requires RV hookups for utilities

Pros and Cons of ADUs

Pros

  • Adds property value and equity
  • Fully customizable in size and layout
  • Can generate rental income
  • Permanent and built to standard housing codes

Cons

  • Higher initial investment
  • Lengthy zoning and permitting process
  • Takes longer to build compared to PMHs

Best Use Cases – When to Choose Park Model Homes vs. ADUs

When to Choose a Park Model Home

  • If you need a budget-friendly vacation home
  • If you prefer mobility and relocation flexibility
  • If you plan to place it in an RV park or resort community

When to Choose an ADU

  • If you want a long-term investment that boosts property value
  • If you plan to rent it out for passive income
  • If you need housing for family members

Which One is Right for You?

Choosing between a Park Model Home vs. ADU depends on factors such as budget, location, long-term plans, and legal restrictions.

  • PMHs are great for affordable, temporary living with mobility options.
  • ADUs are better for permanent housing and real estate investment.

Conclusion

Both Park Model Homes and ADUs offer benefits based on your lifestyle and goals. If you need a low-cost, movable home, a Park Model Home might be best. If you’re looking for a long-term investment with property value appreciation, an ADU is the better choice.

Before making a decision, research local zoning laws and consider your long-term financial goals.

FAQs

1. Can I use a park model home as a full-time residence?

It depends on local zoning laws. Some areas prohibit full-time residency in PMHs.

2. Are ADUs considered permanent structures?

Yes, ADUs are built with foundations and must comply with local building codes.

3. Which is more cost-effective in the long run?

ADUs have higher upfront costs but add long-term value, while PMHs depreciate.

4. Do I need a permit for a park model home?

Yes, but requirements are usually less strict than for ADUs.

5. Can I rent out an ADU legally?

It depends on local regulations, but many cities allow ADUs as rental units.

 

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Jodi Rogers

Jodi Rogers, co-founder of Phoenix Park Models, is all about turning park model homes into big dreams. When you reach out to Phoenix, you will work directly with Jodi on creating your own park model home dream!

Secure your Park model home today!