Oregon RV Park Valuation 2025 — NOI, Cap Rates, and What Your Park Is Actually Worth

Quick Definition

Oregon RV parks are valued using the income capitalization method: NOI (net operating income) divided by the cap rate equals market value. NOI = gross revenue minus operating expenses (excluding debt service and depreciation). Cap rate = what rate of return a buyer expects from the investment. In Oregon's campground market, cap rates range from 6–13% depending on location, occupancy, infrastructure quality, and park type.

The formula is straightforward: $150,000 NOI ÷ 9% cap rate = $1.67M valuation. Higher-demand locations—the Oregon coast, Columbia Gorge, Crater Lake area—command lower cap rates (higher prices). Remote rural parks trade at higher cap rates (lower prices per dollar of NOI). This is the language every buyer and every serious seller speaks. If your park generates $150,000 in NOI and the market is paying 9% cap rates in your area, you're looking at approximately $1.67 million in value.

One more thing: land value is part of the equation, but it's not the primary driver of an RV park's valuation. The park's ability to generate income is. If you own 10 acres worth $500,000 but the park only produces $50,000 in NOI, a buyer isn't paying you $500,000+ for the land. They're paying you what the income justifies.

For a deeper understanding of the Oregon market and available properties, check out our guide to Oregon RV Parks to see how parks across the state are positioned.

TL;DR

• Primary valuation method: NOI / cap rate = value; everything else (comparable sales, replacement cost) is secondary
• Oregon coastal parks: 7–9% cap rates from institutional buyers; 8–10% from individual operators
• Oregon inland parks (Willamette Valley, Crater Lake corridor): 9–11% typical
• Oregon high desert / remote parks (Wallowas, eastern Oregon): 10–13% typical
• NOI calculation: gross revenue - operating expenses (utilities, insurance, labor, maintenance, property tax, management fee) = NOI; exclude mortgage payments and depreciation
• Most common seller mistakes: overstating NOI by excluding real operating costs; pricing based on land value alone; ignoring deferred maintenance in valuation
• A $1M asking price requires approximately $80,000–$130,000 NOI to justify to buyers (at 8–13% cap rate)

How to Calculate Your Oregon RV Park's NOI

Before any buyer will even look at your park seriously, you need to know its NOI. This is non-negotiable. Here's how to calculate it in five steps.

Step 1: Calculate gross revenue. Add all revenue streams—transient site rentals (separated by hookup type: full, water/electric, tent-only), seasonal and annual site fees, dump station fees from day-use visitors, laundry income, camp store sales, and cabin or tiny home rentals if you have them. Use trailing twelve months (TTM) as your primary metric; also compute a trailing 3-year average to show trend analysis. Document each revenue category separately. This granularity matters to buyers. They want to see where the money comes from.

Step 2: Subtract operating expenses. This is where most sellers mess up. Don't leave anything out. Include: property taxes (the full annual amount), insurance (liability and property), utilities (electric, water, sewer or septic), labor (including yourself—see Step 4), maintenance and repairs, credit card processing fees, marketing spend, reservations platform fees (KOA, Hipcamp, Recreation.gov commissions), office supplies, and miscellaneous. If you're hiring someone part-time to manage the office or maintain facilities, that's labor. If you're doing it yourself, that's imputed labor (see Step 4).

Step 3: Do NOT include mortgage or debt service. This is critical and counterintuitive. Debt payments are financing costs, not operating expenses. Two identical parks with the same NOI but different debt structures are worth the same amount. A buyer might finance differently than you did—and that's their choice. Your NOI stays the same. Remove all mortgage payments, loan principal, and interest from your operating expense calculation.

Step 4: Apply management fee normalization. If you manage the park yourself, buyers will deduct 8–12% of gross revenue as a management cost for any buyer scenario where the buyer won't self-manage. This is the most common discrepancy between what a seller calculates and what a buyer will pay. Example: Your park has $400,000 in gross revenue. You manage it yourself and pay yourself $0 in salary. A buyer will still deduct 8–12% ($32,000–$48,000) from your NOI calculation because they assume either they'll hire a manager or they won't work for free. Conservative buyers use the higher end (12%); sophisticated institutional buyers may use 10%. For a complete walkthrough on how to present this to buyers and integrate it into your sale strategy, see How to Sell Oregon RV Park.

Step 5: Verify your NOI against your tax returns. Your Schedule E (if you use a sole proprietorship) or your business tax return should show income and expenses that roughly align with your calculated NOI. After you add back depreciation and amortization—both non-cash charges—your taxable income should be close to your NOI. If there's a huge gap, something is wrong. Either you've excluded real expenses or you've included financing costs. Find it.

Oregon Cap Rates by Region

Cap rates vary significantly across Oregon, driven by location, demand, and buyer profile. Here's what you can expect by region.

Oregon Coast: 7–10%. Parks within 1 mile of US-101 beaches with full hookups and strong occupancy (75%+ in-season) are premium assets. Coastal parks trading at 7–8% cap rates attract institutional buyers and investors who accept lower returns for the brand premium of a coastal destination. These parks often have long waiting lists for seasonal sites and consistent year-round occupancy. Example: A coastal park near Cannon Beach with $180,000 NOI and strong summer demand might trade at $2.25M (8% cap rate). A more remote coastal park might see 9–10% cap rates.

Columbia River Gorge + Portland corridor: 7–9%. This is a high-traffic corridor with year-round demand from Portland metro residents and I-84 through-traffic. Parks in Troutdale, Gresham, and along the scenic corridor attract families, retirees, and adventure travelers. A Troutdale-area park with $150,000 NOI might trade at $1.67M–$2.14M (7–9% range). Institutional buyers and park management companies actively bid on Gorge properties.

Willamette Valley and Cascades: 9–11%. Silver Falls, the Crater Lake corridor, Eugene, and Salem-area parks are seasonal but reliable. These parks see strong demand during summer months and shoulder seasons (spring and fall). A park with $120,000 NOI in the Crater Lake area would value at approximately $1.2M (10% cap rate). These parks appeal to regional owner-operators and to buyers seeking Oregon's wine country and outdoor recreation without the coastal premium.

Southern Oregon (Medford/Klamath): 9–12%. Parks on OR-62 between Medford and Crater Lake trade at 9–10% from regional buyers. More remote parks in the Rogue River corridor command 11–12% cap rates. These parks attract overflow from Crater Lake tourism and serve as basepoints for fishing and outdoor enthusiasts. Example: A well-run park near Klamath Falls with $100,000 NOI might value at $910,000 (11% cap rate).

Eastern Oregon + High Desert: 10–13%. Distance from major population centers increases cap rates (decreases prices per dollar of NOI). Exception: Bend-area parks trade at 8–10% due to Bend's explosive tourism growth and outdoor recreation boom. Bend has become a destination draw in its own right, attracting both vacationers and remote workers. Wallowa Lake parks in the far northeast corner: 11–13% cap rates. Example: A well-managed park near Baker City with $90,000 NOI might trade at $750,000 (12% cap rate).

For comparable transaction data in the current Oregon market and active properties, see RV Parks for Sale Oregon.

Factors That Increase or Decrease Oregon RV Park Value

Not all parks with the same NOI are created equal. Here's what moves the needle on value.

Location relative to demand drivers (+). Proximity to I-5 or I-84 corridors, national and state park gateways (Crater Lake, Columbia Gorge, Oregon Coast), and Portland or Bend metro areas increases value significantly. Buyers pay location premiums of 1–2 cap rate points. A park with identical financials but located on a rural county road in Union County will trade at 11–13% cap rates, while a similar park 30 miles closer to Portland might trade at 9–11%. Location is the largest single factor in cap rate assignment.

Infrastructure quality (+/-). Modern electrical panels with 100/200-amp service at each site, updated septic and sewer systems, paved roads with proper drainage, and ADA-compliant facilities increase value and lower cap rates. Aging 30-amp-only infrastructure, failing septic systems, gravel roads, and dated utilities reduce value. Deferred maintenance discounts typically run 1.5–2.5x the estimated repair cost. If your septic system needs $80,000 in repairs, expect a $120,000–$200,000 valuation discount (buyers price in risk and their cost to fix).

Occupancy rate and seasonality (+). Year-round parks in the Portland metro or Gorge command significantly higher values than purely seasonal parks. A park with 65% annual occupancy at $40 average nightly rate is more valuable than a park with 90% occupancy for only 90 days per year. Revenue predictability is what buyers want. Seasonal parks create cash flow gaps that require reserves. Year-round parks can cover expenses every month.

Documentation quality (+). Clean, organized, three-year P&L statements, occupancy records, and revenue documentation speed up due diligence and allow you to maintain asking price. Poorly documented parks give buyers massive negotiating leverage. "Show me your books" is the first question. If you can't quickly produce three years of clean financials, expect a 10–20% discount for the buyer's friction and risk.

Permitting and zoning compliance (+). Parks with current OPRD (Oregon Parks and Recreation Department) licenses, valid septic permits, current business licenses, and no outstanding code violations sell faster and at lower risk premiums. Permit issues create buyer concerns and often result in a 5–15% price discount for "compliance risk." If your septic system is operating on a 40-year-old letter from the county health department, buyers will price in the cost and time to get it properly permitted.

For a deeper look at what institutional and private buyers actually prioritize, see What Buyers Want Oregon.

Cost Math

Let's walk through three real-world valuation scenarios to see how the formula works in practice.

Example 1 — Coastal Park (Lincoln City area):

• Gross revenue: $480,000
• Operating expenses: $290,000 (utilities, labor, insurance, maintenance, property tax)
• NOI: $190,000
• Cap rate (coastal premium): 8%
• Valuation: $190,000 ÷ 0.08 = $2.375M

This coastal park has strong occupancy year-round (tourists in summer, winter escapees and seasonal residents in off-season). The $290,000 operating expense line includes $35,000 in estimated market-rate management (owner currently self-manages). Without coastal premium pricing, this park might trade at 9%, which would value it at $2.11M. The 1% coastal discount reflects buyer preference for the location.

Example 2 — Willamette Valley Park (Eugene area):

• Gross revenue: $320,000
• Operating expenses: $210,000
• NOI: $110,000
• Cap rate: 10%
• Valuation: $110,000 ÷ 0.10 = $1.1M

This park is seasonal (heavy summer, lighter winter). The operating expense ratio (66%) is higher than the coastal park, which is typical for seasonal properties—you have to maintain infrastructure year-round but only generate revenue for part of the year. The 10% cap rate reflects moderate demand and seasonal concentration. A buyer might negotiate down to $1.0M if occupancy is declining or maintenance is deferred.

Example 3 — Eastern Oregon Park (near Baker City):

• Gross revenue: $180,000
• Operating expenses: $120,000
• NOI: $60,000
• Cap rate: 12%
• Valuation: $60,000 ÷ 0.12 = $500,000

This park is remote but well-run. The 67% operating expense ratio is healthy. The 12% cap rate reflects distance from major markets (buyer expects higher return to justify the location and illiquidity). If the owner could document stronger occupancy or add amenities to attract regional demand, the cap rate might compress to 11%, pushing value to $545,000. Conversely, if occupancy is trending down, the cap rate expands and value contracts.

Oregon RV Park Valuation: At a Glance

Frequently Asked Questions

What exactly is a cap rate? Cap rate (capitalization rate) is the annual return an investor expects on their cash investment. If you buy a park for $1M with $100,000 NOI, your cap rate is 10% ($100,000 ÷ $1,000,000). It's the inverse of the price-to-income ratio. Higher cap rates mean lower prices; lower cap rates mean higher prices (investors accept smaller returns for premium locations or lower risk).

How is NOI different from profit? NOI is operating profit before debt service and taxes. Profit is what's left after you pay the mortgage, loan interest, and income taxes. Two parks with identical NOI but different debt loads show different profit. NOI is what buyers care about because they might finance differently than you did. Your profit is personal; your park's NOI is objective.

Why does management fee normalization matter so much? Because most owner-operators manage their own parks and take irregular draws or no salary. Buyers assume they'll hire a professional manager (or won't work for free). If you've calculated NOI at $150,000 by paying yourself $0, a buyer will deduct $32,000–$48,000 (8–12% of $400K gross) and offer based on $102,000–$118,000 NOI instead. This is the #1 disconnect between seller expectations and buyer offers.

Should I include land value separately in my valuation? Land value is embedded in cap rate pricing. You're not adding land value on top of the NOI capitalization. If you have 10 acres of raw land adjacent to your park that isn't generating income, that's a separate asset. But the park's land—the lots, roads, utilities infrastructure—is valued via the NOI method, not as raw land. Cap rates already account for location premium.

How do I value a park with cabins or tiny homes? Cabin and tiny home revenue is part of gross revenue, just like RV site revenue. If your park has 30 RV sites generating $300,000 and 5 cabins generating $80,000, your gross revenue is $380,000. Operating expenses cover both. You calculate NOI the same way. Cabins typically have higher nightly rates but higher turnover costs (cleaning, linens, repairs). The net contribution is part of your NOI.

What does deferred maintenance really do to my valuation? It compresses cap rates and reduces value. If your septic needs work, your roof is 20 years old, or your electrical infrastructure is failing, a buyer will demand a higher cap rate (lower valuation) to account for immediate capital expenditure. A $100,000 repair bill might result in a $150,000–$250,000 valuation reduction (1.5–2.5x multiplier). The buyer prices in the cost and the time and hassle of fixing it. Fix deferred maintenance before selling if you can; the payback is substantial.

Why do Oregon coastal parks trade at lower cap rates than inland parks? Coastal parks have higher perceived stability and brand premium. Buyers believe coastal RV parks have longer booking windows, lower vacancy risk, and easier re-sale. They're willing to accept 7–8% returns instead of 10–12%. This is partly justified (year-round demand) and partly behavioral (coastal locations are aspirational). The cap rate differential is pure location premium.

I just renovated my park. How does that affect valuation? Renovations increase value if they're documented and reflected in operating metrics. A $80,000 renovation in new utilities, ADA upgrades, or road repaving might allow you to raise nightly rates by $5–$10 per site, generating $40,000–$80,000 in incremental annual NOI. That improvement shows up in the numerator (higher NOI) and may also compress cap rates by 0.5–1% (buyers are more confident in the asset). Undocumented or cosmetic renovations (paint, trim) don't move the needle.

How does comparable sales data work for RV parks? Comparable sales (comps) are secondary to income capitalization. You look at what similar parks in your region sold for recently, calculate their implied cap rates, and compare. If a park in your area sold for $1.5M with $150,000 NOI, that's a 10% cap rate comp. If your park has $160,000 NOI, you'd estimate value at $1.6M using the same 10% comp cap rate. Comps validate your cap rate assumption but don't override the income method.

Does self-managed vs. professionally managed really affect valuation that much? Yes. A professionally managed park with clean systems and documented processes might trade at 9% cap rate; a self-managed park with the same NOI might trade at 11% (due to buyer uncertainty and transition risk). This is about buyer confidence in continuity. If you're 65 years old and the only person who knows how the park operates, a buyer will discount heavily. If you have a trained manager and documented procedures, that discount shrinks to nearly zero.

Want to Know What Your Oregon Park Is Worth?

If you're sitting on a property and wondering whether it makes sense to put it on the market, or if you're curious how your NOI translates into actual market value, let's talk.

I'm Jenna Reed at rv-parks.org. I work directly with park owners, investors, and operators across Oregon. I don't need to list your park to give you a preliminary valuation—I just need your trailing twelve-month numbers and basic operating data. These conversations are confidential and come with no obligation.

Reach out to me at jenna@rv-parks.org or visit /sell to start a conversation about your park's value, the Oregon market, and whether a sale makes sense for you right now. Let's find out what your park is actually worth.