Are RVs Considered Mobile Homes?


Many people live in RVs, which have many similarities to mobile homes from wheels to being towable, to having that pre-fabricated feel. But whether you’re talking about HOA restrictions, insurance, or just in general, are RVs considered mobile homes?

I decided to do some research, and this is what I found out:

RVs are not mobile homes, despite sharing some common manufacturing practices. Mobile homes built after 1976 are called manufactured homes. They have to meet certain regulations that RVs do not in order to live in them. However, most RV campgrounds that allow permanent residents will also allow mobile homes.

But that just scratches the surface.

In this article, we’re deep-diving into the differences between RVs and mobile homes and the associated costs of living in both. Let’s get started.

What’s the difference between a mobile home and an RV?

The primary differences between mobile homes and RVs are that mobile homes can appreciate under the right conditions, but RVs will always depreciate. You’ll have to pay to park both, but you are only required to insure RVs. And mobile homes, despite the name, are not easily moveable.

Ultimately, living in an RV is not the same as living in a mobile home.

Mobile homes are also called manufactured homes. Technically, if it was built before 1976, it’s still called a “mobile home,” but anything built after 1976 is a manufactured home.

Manufactured homes have to meet several federal regulations that RVs do not have to meet.

For this article, I’m going to assume that the RV you are considering living in was built after 1976. Manufactured homes have to comply with federal regulations to design, construct, and install mobile homes. These regulations assure quality, durability, safety, and affordability. They also ensure that electrical wiring, plumbing, and HVAC systems in each home are held to the same standards.

Manufactured homes are homes.

They have living rooms, full kitchens, bathrooms, and separate bedrooms, just like a house made from wood or brick. They are cheaper than a house but are still required to be safe to live in full-time. They are engineered for wind safety, energy-efficient, and secured to the ground by steel anchors.

RVs are vehicles that have a home or living quarters attached to them.

They are not manufactured to be lived in on a full-time basis. There are several different classes of RVs.

Class A

This is a motorhome, includes commercial passenger and school buses that have been converted into RVs. Class A motorhomes are generally large and luxurious. They have wide berths, multiple rooms, and bathroom facilities.

Class B

These RVs are campervans with raised roofs. They often have small kitchens with refrigerators and gas grills. Some larger ones will have a water heater, heating and AC, toilets and a shower.

Class C

These vehicles are what many people think of when they think about motorhomes. They have the alcove that fits over the truck cab. They typically have a wider berth for sleeping and entertainment. Many times they also have a small kitchen area and a bathroom area.

Of course, there are many other types of RVs as well. There are 5th wheels, truck campers, pop-up campers, and travel trailers. All of which you could theoretically live in full-time.

Like mobile homes though, RVs aren’t as well insulated as a permanent home. This can be a problem in winter.

RVs are also tough to live in during the winter months, especially in areas that get a lot of snow. To read about living in an RV during the winter, check out this recent article.

Just click the link to read it on my site.

Which depreciates faster, a mobile home or an RV?

An RV will typically depreciate faster than a mobile home. 5th wheel RVs depreciate the fastest, and Class C RVs depreciate the slowest. However, supply and demand can impact RV pricing more than mobile home pricing. 

But in times when 6-figure RVs are scarce, and demand is high, late model RVs in that category could easily see very little depreciation.

Manufactured homes are a low-cost, affordable way to own a home. They cost about half as much as site-built construction. Mobile homes don’t always appreciate in value though as more permanent homes usually do. In order to appreciate in value, a mobile home would have to be a newer model, and on the higher-end.

But as I mentioned, there are a lot of variables that come into play regarding the value of a manufactured home. Location, maintenance, and age are just a few of them.

Other variables include the housing market, the community, and the inflation rate.

The housing market and the community in which the mobile home is located have a significant impact on the home’s future value. For example, a mobile home on its own property will appreciate in value, whereas one in a mobile home park will likely depreciate.

In fact, when properly maintained, manufactured homes can appreciate at the same rate as other homes in the surrounding neighborhood. source

RVs, on the other hand, always depreciate.

In fact, you can expect to lose approximately 20% of your total purchase price of a new RV as soon as you drive it off the lot. It will significantly depreciate every year after that for about five years. After that, the depreciation will plateau.

Fifth wheels depreciate the fastest, while Class C motorhomes depreciate the slowest. But just like with mobile homes, there are certain things that can make your RV depreciate faster.

Brand new RVs and RVs still in the breaking-in period depreciate the fastest. The breaking-in period can last several years! Off-brand RVs, RVs with water damage, and those that have been stored outdoors will also depreciate faster.

Broken or old appliances can also contribute to the depreciation factor. source

While a mobile home may or may not depreciate, it is guaranteed that your RV will depreciate. It is also guaranteed to depreciate faster than a mobile home, no matter how well it’s taken care of.

Which kind of RV holds its value the best?

Class B RVs hold their value best. Generally, the larger the RV, the more quickly it depreciates. On average, 5th wheels and Class A motorhomes have the most rapid depreciation, while Class B and C vehicles have the slowest depreciation of motorhomes. Travel trailers have the slowest depreciation of towable campers.

However, a luxury Class A RV will hold its value better than economy models, especially if well maintained.

For a 5th wheel, by the time it reaches ten years old, it will decrease in value by 71%. A Class C motorhome, on the other hand, will decrease in value by about 50%.

Several factors play into depreciation.

While mileage doesn’t play a huge role in depreciation, time most certainly does. Just like any other vehicle, brand new RVs lose approximately 20% of their value as soon as you drive them off the lot. source

Almost all motorhomes fall under one of three classes.

Class A, which is the most luxurious and the largest. Think Greyhound bus large. Class B motorhomes are the smallest and least expensive. These are more like upgraded vans. Finally, Class C motorhomes are somewhere in between Class A & Class B motorhomes.

Class C vehicles are what many people think of when they think about motorhomes.

They have the alcove that fits over the truck cab. They typically have a wider berth for sleeping and entertainment. Many times they also have a small kitchen area and a bathroom area.

Of course, there are also travel trailers and fifth-wheels.

Is insurance cheaper on an RV or a mobile home?

Insurance on a mobile home is typically cheaper than RV insurance. On average, RV insurance costs $1,200 to $2000 per year. By comparison, mobile home insurance costs anywhere from $250 to $1,300 per year. Unless required by a lender, insurance is not required on a mobile home but is required on all RVs.

There are many factors that determine insurance costs, especially for an RV, such as:

  • Class
  • Size
  • Use
  • Age 

Mobile home insurance is not required by law, but it can help pay for repairs due to damage.

RV insurance covers more than typical auto insurance. And homeowners insurance doesn’t cover moving or travel-related incidents. So if you purchase an RV, you should make sure you have the right kind of insurance.

Just like traditional automobile insurance, you will be required to get liability insurance on an RV.

Liability insurance is required in all states. If you are found at-fault for an RV-related incident, liability insurance can help cover legal fees, property damage, and medical expenses to the other parties. source

You should also get collision insurance, comprehensive insurance, and uninsured/underinsured coverage.

And if you took out a loan for your RV, as most do, this will be required by the lender. All of these are pretty typical auto insurance policies. However, with RVs, you can also get contents insurance.

This will cover any personal belongings you have on board. This is especially important if you live in your RV or just spend a lot of time traveling. This will cover the cost of your possessions in case of an accident or natural disaster.

You can also get coverage for emergency expenses. For example, if your RV catches fire and you need temporary lodging or transportation, it will be covered. There is also total loss replacement and campsite liability insurance if someone gets injured in or near your RV while it’s parked.

The cost of RV insurance can vary widely.

It depends on the type of coverage you get, as well as the miles you travel every year, the age of the motorhome, prior traffic violations, and deductible costs.

But for our 2020 Newmar Bay Star Class A RV, we pay about $1,300/year for full coverage.

Mobile home insurance is not required by law and won’t cost anything. But you’ll be paying for any repairs due to damage out of your pocket. The cost will vary based on location, insurance limits, deductible, mobile home age, and the types of coverage you purchase.

Does it cost more to park an RV or a mobile home?

Mobile home parks are typically slightly cheaper than RV parks. Mobile home parks charge an average of $400-$700 per month to park your mobile home. RV parks can cost anywhere from $25-$50 per day with some offering monthly rates averaging between $500-900 per month or more for RV resorts. 

Mobile home parks are meant to be lived in.

They are expected to live there permanently and pay rent for the lot that their mobile home is parked on. RVs are usually in the park for a week or less and typically pay a daily parking rate.

Like everything, the cost to rent a lot in a mobile home park varies significantly by state.

Rent may or may not include trash pickup, lawn care, and sewer.

Some of the “high end” mobile home lots may even include a pool and clubhouse. Sometimes they’ll even have a lending library, indoor and outdoor rec areas, and park areas with picnic tables and grills for use.

Campsite fees typically include electric, water, and dumping stations. You’ll also get to use any community amenities. Like bathrooms, rec areas, and clubhouse use.

So, parking in an RV park will cost more than renting a lot in a mobile home park. You’ll also get less for your money.

Because you’re renting, you won’t be liable for property taxes at either of these places, and you may even be able to write them off on your taxes.

Did I answer everything you wanted to know about whether RVs are considered mobile homes?

Mobile homes are homes. Just like site-built houses, they are specifically made to be lived in.

RVs are not made with the intent of being lived in full-time. RVs will never appreciate in value, but a mobile home can and will appreciate under the right conditions.

If you want to travel, then living in an RV is a great way to go. But if you are looking for affordable, permanent housing, you’d be better off purchasing a mobile home.

Cassandra & Jeff Campbell

Cassandra and Jeff Campbell travel on and off with their 3 daughters in a Newmar Baystar Class A Motorhome. They write extensively on both RVs, campgrounds, parenting on the road tips, remote learning & schooling, and much more!

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