Tennessee woman shocked with 70% rent hike at mobile home park as big investor takes over. And she can't even reach anyone to ask questions

Over 22 million Americans now live in mobile homes, drawn by lower upfront costs and simpler construction (1). But that refuge is increasingly under threat. Mobile home parks across the country are being snapped up by institutional investors who see them as low-risk, high-return assets. It’s a shift that’s often followed by sharp rent increases for residents who can’t easily move.

That reality hit home on January 1 for residents of a Louisville mobile home park in Blount County, Tennessee. One tenant, Sherry Russell, said she was notified that her lot’s rent would jump 70% starting February 1.

“It’s been a little over a week now, and I’m still trying to wrap it around my head,” Russell told WATE 6 On Your Side (2).

The increase was just the beginning

Average rent increases have hovered around 3.18% annually in the U.S. since 2012 (3). For mobile home residents, rent typically ranges from about $200 to $800 a month, with the national average hovering at $400 (4). Russell’s rent was $350 a month. Under the proposed 70% increase, her rent will rise by about $245, bringing it to $595.

The increase alone was jarring, but within days of the ownership change, Russell said she received a notice claiming her January payment was late, a charge she disputes.

For years, she said, she paid her rent in cash on the 15th of every month at the manager’s office, handing the payment directly to Mr. Wilson. Adding to the confusion, Russell was given a document labeled, “Pay Lease” card, which listed payment instructions directing residents to pay at Walmart or K-Mart.

“K-Mart has been out of business for about 10 years now,” said Russell.

Adding to the situation were errors that appeared throughout the paperwork provided by the new owner, Volunteer Runway Communities. Her last name was listed incorrectly as West, her maiden name, instead of Russell.

“The only thing that was correct on this form was the lot number,” Russell said. “My last name at one time was West, but not since I was 18 years old.”

When Wall Street buys the park

County records show that Volunteer Runway Communities recently purchased three mobile home parks in Blount County. Since the ownership change, Russell said she has tried repeatedly to get answers about rent increases and management changes, but hasn’t been able to reach anyone directly.

“I would like to know where the extra money will go. I just want all the junk cleaned up. My money means something,” she said.

Russell’s experience reflects a growing national issue as investment firms increasingly acquire mobile home communities. Maggie Hassan, a Democratic representative on the Senate’s joint economic committee, launched a probe into firms with large stakes in mobile home parks (5). The investigation seeks documents related to rent increases, lease terms, fees, evictions and maintenance practices.

Mobile home residents are often vulnerable. Many own their homes but rent the land beneath them, making it costly and sometimes impossible to relocate if rents spike or lease terms change. As corporate ownership expands, Hassan said firms still have a responsibility to meet basic standards and maintain clear communication with residents.

That concern is echoed by housing advocates tracking the industry nationwide.

Jim Baker, executive director of the Private Equity Stakeholder Project, said his group has documented a pattern of aggressive practices in manufactured housing and private equity investment.