Modular vs Manufactured Housing: What’s the Difference?

Modular vs Manufactured Housing: What’s the Difference?

Introduction

The terms “modular” and “manufactured” are often used interchangeably—but they’re not the same. Understanding the differences is crucial for investors, buyers, and developers.

Modular Homes

• Built in sections (modules) in factories.

• Must meet local/state building codes.

• As durable as traditional construction.

• Typically financeable with conventional mortgages.

Manufactured Homes

• Built entirely in factories on steel frames.

• Must meet HUD code standards.

• More affordable but limited appreciation.

• Financing often through specialized loans.

Investment Implications

• Modular = higher upfront cost, higher long-term value.

• Manufactured = affordability play, strong for rental parks.

CTA: Still debating modular vs manufactured? Let’s talk about your goals and match you with the right strategy.