How Outdoor Hospitality Compares to Multifamily as a Passive Investment

August 20, 2026 · RV park investing, explained

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Multifamily and outdoor hospitality both produce income from real estate, but the risk and return drivers are different enough that they behave like separate asset classes. If you're used to apartments, here's what changes when you add RV parks and campgrounds to the mix.

How do returns compare?

Outdoor hospitality typically trades at higher cap rates than multifamily, often in the 7% to 10% range for stabilized parks versus 4% to 6% for comparable multifamily in many markets. The gap exists because the asset class is smaller, less institutionalized, and seen as more operationally intensive. That same gap is where a lot of the value-add upside comes from for investors willing to do the work.

Is outdoor hospitality riskier than multifamily?

It depends on the park. A well-located park with a strong mix of long-term sites and utility hookups can be more stable than people assume, since long-term tenants behave a lot like apartment tenants. A park that leans heavily on transient summer traffic carries more revenue risk, closer to a hotel than an apartment building. The risk profile is really a spectrum, not a single answer.

How hands-on does a passive investor need to be?

As a limited partner, involvement should look similar to a multifamily syndication: you review the deal, ask questions about the operator's plan, and then get quarterly updates. The difference is on the operator's side. Running a park day to day involves more moving parts than an apartment complex: reservations, seasonal staffing, site maintenance, sometimes retail or activities. That operational load falls on the general partner and property manager, not the passive investor, but it's worth understanding because it affects execution risk.

What about financing?

Multifamily has deep, standardized debt markets through agency lenders like Fannie Mae and Freddie Mac. Outdoor hospitality financing is thinner. Loans often come from regional banks, credit unions, or SBA products, with terms that vary more from lender to lender. Expect somewhat higher rates and shorter terms in many cases, and expect the underwriting process to take longer because fewer lenders specialize in the space.

How seasonal is the income?

This is the biggest structural difference. A multifamily property produces roughly the same rent roll every month. An RV park in a seasonal market can see occupancy and revenue swing hard between summer and winter, sometimes by 50% or more in colder climates. Parks with a heavier long-term or annual site mix smooth this out considerably, which is one reason site mix matters so much when underwriting a deal.

Which is easier to exit?

Multifamily has more buyers, more comparable sales data, and more standardized appraisal methods, which generally makes it easier and faster to sell. Outdoor hospitality has a smaller buyer pool and less consistent comp data, so exits can take longer and pricing can be less predictable. That illiquidity is part of why the asset class trades at a discount, and part of why patient capital tends to do well in it.

Still stuck?

If you're weighing a first allocation to outdoor hospitality, start by reading the operating history of a specific park rather than the asset class in general, since site mix and seasonality will tell you more than any industry average. Invest With Zac breaks down individual deals if you want to see how these numbers play out in practice.