Only 17% of the Country Allows Manufactured Homes: Where the Zoning Gap Creates Land Opportunities

Washington wants more factory-built homes. Congress removed the permanent chassis requirement, HUD is rewriting its playbook, and the White House just created a federal task force. But one number keeps all of that in check: according to a new Realtor.com report, just 17% of the nation is zoned to explicitly allow manufactured housing communities.

For anyone asking where manufactured homes are allowed, the honest answer is "less of the map than you think." For mobile home investors, builders and land wholesalers, that scarcity is exactly where the opportunity sits.

What the Realtor.com Report Found

The 17% zoning ceiling

Realtor.com's analysis, written by Tristan Navera and published October 26, 2026, shows that only about 17% of the country is zoned to explicitly allow manufactured housing communities. Senior economist Joel Berner put it plainly: even with the federal changes, "municipalities get the final say in where homes can be built."

In other words, a cheaper, faster home product does nothing for a parcel that local zoning won't let you put it on.

The cities that would benefit most

To find where easing restrictions would matter most, Realtor.com ranked the top 100 housing markets on three factors:

1. Share of starter homes among listings
2. Median land price per acre
3. Premium for new construction over existing homes

The result points to markets where starter homes are scarce and building new is expensive. The top five:

| Rank | Metro | |---|---| | 1 | Hartford, CT | | 2 | Denver, CO | | 3 | Allentown, PA | | 4 | Albuquerque, NM | | 5 | Colorado Springs, CO |

Realtor.com notes that most metros needing the most help are in New England and on the smaller side, mainly because the premium for new construction there is high. New York is home to three of the top 10 cities, and Gov. Kathy Hochul just announced a $20 million state investment to develop factory housing in several parts of the state.

Why the timing matters

Under the 21st Century ROAD to Housing Act, manufactured homes no longer need a permanent chassis, which Realtor.com says saves about $10,000 in construction costs and opens up new designs. We covered that change in depth in Chassis-Free Manufactured Homes: What They Mean for Land Buyers. Berner adds that chassis-free homes look much more like conventional houses, which may help erode the "trailer home" stigma that drives many local bans.

The Federal Push: A New Task Force on Manufactured Housing

On October 22, 2026, President Trump signed Executive Order 14438, "Decreasing Housing Costs for the American People" (published at 91 FR 68007). Section 3 creates the Task Force on Manufactured Housing Innovation, co-chaired by HUD and the Federal Housing Finance Agency (FHFA), with Agriculture, Commerce and Veterans Affairs at the table.

Within 180 days, the task force must recommend ways to:

• Streamline specifications, certifications, inspections and approvals across federal housing and finance programs
• Recognize approvals across agencies to avoid duplicate reviews
• Remove federal rules that slow automation, modular and standardized production
• Use federal financing, insurance and guarantee programs to boost affordable factory-built homes

The most land-relevant clause: the task force must evaluate whether federal grant funding can be conditioned on, or used to incentivize, state and local adoption of standardized permitting for manufactured and factory-built housing. That is a direct shot at the local zoning wall behind the 17% figure.

Berner calls getting HUD and FHFA together the most helpful part: "HUD controls the product, while FHFA controls much of the financing." HUD's own Next-Generation Manufactured Housing Action Plan lays out the product side.

States Already Moving: Florida and Virginia

Two states have already taken the decision away from hostile local codes. Florida's §553.385 and Virginia's HB 655 (Va. Code §15.2-2290) allow qualifying manufactured homes where site-built single-family homes are allowed. Realtor.com cites Gov. Abigail Spanberger's action in Virginia as a sign of appetite for change. For the full breakdown of how those laws work lot by lot, read Manufactured Home Zoning: By-Right in Florida and Virginia.

The bigger story here is national: if 83% of the country still doesn't explicitly allow manufactured housing communities, every state that follows Florida and Virginia moves a big block of land from "no" to "maybe" overnight.

What This Means for Mobile Home Investors, Builders and Wholesalers

Mobile home investors and developers

• Zoned land is the scarce asset. When only a sliver of the map explicitly allows manufactured housing communities, parcels that already carry that zoning deserve a premium in your underwriting.
• Watch the high-cost metros on the list. Hartford, Denver, Allentown, Albuquerque and Colorado Springs combine high land costs with few starter homes. Any local easing there could create fast demand for affordable product.
• Track state preemption. Florida and Virginia show that state law can open single-family lots to manufactured homes. Check our mobile home land guide for what to screen on each parcel.

Builders

• Small infill lots get more valuable. A chassis-free home on a small lot can compete with site-built starter homes at a lower cost. Pair this with minimum lot size reform and lots that were once dead become buildable.
• Cheap city lots fit the model. Land bank lots are a natural match for factory-built starter homes in cities trying to add supply.
• Browse land for builders to see what's being matched now.

Land wholesalers

• Zoning is your selling point. Before you market a lot, confirm whether manufactured homes are allowed there. A parcel that allows them reaches a much wider buyer pool.
• Know who's buying. Manufactured home developers, small builders and park operators are all hunting the same scarce, correctly zoned dirt. Matching the parcel to the right buyer box beats blasting a list.
• Check land value before you set your price, and sell land directly to buyers already looking in your county.

How to Check Where Manufactured Homes Are Allowed

1. Pull the zoning code for the parcel's city or county and search for "manufactured home," "mobile home," "HUD-code" and "factory-built."
2. Read the definitions. Many codes treat HUD-code homes differently from modular homes.
3. Check state law. In Florida and Virginia, state law can override stricter local rules for qualifying homes.
4. Call the planning office and get the answer in writing before you close.
5. Follow the task force. Recommendations are due within 180 days of October 22, 2026, so expect news by spring 2027.

Post Your Buy Box on LandMatch USA

If you build, place or develop manufactured homes, don't wait for zoning news to hit the headlines. Post your buy box on LandMatch USA with your target counties, lot sizes, zoning needs and price range. Wholesalers and sellers can see exactly where you're buying and bring you parcels that fit, including lots where manufactured homes are allowed today.

Wholesalers: find buyers on the map before you lock up your next contract.

FAQ

What percentage of the U.S. allows manufactured homes?

According to Realtor.com's October 2026 report, just 17% of the nation is zoned to explicitly allow manufactured housing communities.

Which cities would benefit most from easing manufactured home restrictions?

Realtor.com's ranking of the top 100 markets puts Hartford, CT first, followed by Denver, Allentown, PA, Albuquerque, NM and Colorado Springs, CO. Most of the top metros are smaller markets in New England, and New York has three of the top 10.

What is the Task Force on Manufactured Housing Innovation?

It was created by Executive Order 14438 on October 22, 2026. HUD and FHFA co-chair it, and it must deliver recommendations within 180 days, including whether federal grants can encourage standardized local permitting for factory-built homes.

Can a city still ban manufactured homes after the ROAD to Housing Act?

Yes. The federal law changed the product (removing the permanent chassis requirement), but local zoning still decides where homes go, unless a state law like Florida's §553.385 or Virginia's HB 655 overrides it.

How do I find land where manufactured homes are allowed?

Check the local zoning code and state law, confirm with the planning office, and post a buy box on LandMatch USA so wholesalers and sellers with matching parcels can find you.

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Sources: Realtor.com, White House EO 14438, Federal Register, HUD Action Plan, Florida §553.385, Va. Code §15.2-2290