Park Model Tiny Home: It Looks Like a House—But It’s Actually an RV

Thinking about a tiny home? There’s one option most people overlook—park model tiny homes.

These small-but-mighty homes offer the charm of a cottage, the flexibility of an RV, and a huge perk most homeowners dream of:

No annual property taxes. Sounds too good to be true?

Stick around—we’re breaking down what a park model tiny home really is, how it works, and why more people are turning to them for affordable living, backyard rentals, and housing loved ones.

Disclosure: This post may contain affiliate links, meaning I can earn commissions. If you decide to purchase through my links, it is at no cost to you.

What Is a Park Model Tiny Home?

A park model tiny home is a small, movable home—usually under 399 square feet—that’s built to RV standards, but designed to look and feel like a house.

Think:

• Full-sized kitchen appliances
• Vaulted ceilings
• Real bathrooms
• Lofts, porches, even fireplaces

It’s classified as a Recreational Vehicle (RV), not a permanent house.

That one legal detail opens the door to major flexibility in cost, setup, and zoning.

Why 399 Square Feet Matters for a Tiny Home

Park models are capped at 399 square feet because once you go over that limit, the home falls into the HUD category—just like manufactured homes (aka mobile homes).

HUD homes have to follow stricter building codes and are usually taxed like real property.

Staying under that threshold means your home stays legally classified as an RV, which leads us to the big benefit.

Why Park Model Tiny Homes Pay No Property Taxes

That’s right. Because park model homes are considered personal property, not real estate, you typically only pay sales tax once when you buy it.

After that, no annual property taxes—as long as it’s not permanently affixed to the land.

If you’re placing it on a friend’s land, in a backyard, or in a tiny home community, this can translate to thousands in savings over time.

What’s the Difference Between a Tiny House and a Park Model Home?

While tiny houses and park model homes look similar from the outside—and both offer small, efficient living spaces—they’re legally and structurally quite different. Here’s how they compare:

1. Legal Classification

• Tiny House: Often falls into a legal gray area. Some are built on wheels and classified as RVs, others are foundation-built and treated as homes—but they may not meet local code or HUD standards.
• Park Model Home: Always classified as a Recreational Vehicle (RV) if it’s under 399 sq ft. This makes them easier to register and place in RV parks or tiny home communities.

2. Size and Design

• Tiny House: Varies widely in size and design. Some are under 200 sq ft; others can be much larger. They’re usually custom-built or DIY projects.
• Park Model: Limited to 399 sq ft or less, but built in a factory to high standards. They often include full-sized appliances, porches, and real interior finishes.

3. Building Codes

• Tiny House: May or may not meet local building codes. Zoning can be a challenge.
• Park Model: Built to ANSI A119.5 standards for recreational vehicles, making them easier to approve in certain jurisdictions.

4. Mobility

• Tiny House: Often built on a trailer for mobility, but not necessarily easy to move frequently.
• Park Model: Technically mobile, but designed to be placed and stay in one spot long-term.

5. Use Cases

• Tiny House: Popular among DIYers, minimalists, and off-grid adventurers.
• Park Model: Popular with families, retirees, and homeowners who want a backyard rental, guest house, or housing for a loved one.

Why Buy a Prefab Tiny Home?

Park models are prefabricated in a factory, then delivered and set up on-site. That means:

• Fast delivery (often just weeks)
• Lower construction costs
• Customizable floor plans and finishes

You can choose from lofted or single-level layouts, kitchen styles, porch types, and more.

Park Model vs. Tiny Home vs. Manufactured Home

Not sure how a park model tiny home stacks up against other small housing options?

Here’s a quick side-by-side comparison:

How Much Do Park Model Tiny Homes Cost?

Park model homes typically range from $50,000 to $120,000, depending on:

• Size and layout
• Whether it has a loft
• Type of appliances
• Custom cabinetry and finishes
• Porches or fireplaces

They’re often cheaper than building an ADU or buying a traditional tiny home—and they’re quick to set up.

How to Finance a Park Model TIny Home?

You likely won’t get a mortgage, but here are some financing options:

• RV loans (most common)
• Personal loans
• In-house financing from the dealer
• Cash or home equity

Pros and Cons of a Park Model Tiny Home

Before you buy a park model, it’s important to know the upsides and limitations. Here’s a quick breakdown to help you decide if this type of tiny home fits your goals.

If you are one that likes more details, I offer more information on each pro and each con below.

Pros

• No Annual Property Taxes
  Since park models are classified as RVs, you typically only pay sales tax up front—no ongoing property tax bill.
• Affordable Housing Solution
  Most park model homes cost between $50,000 and $120,000, which is significantly less than a traditional house or site-built ADU.
• Quick to Set Up
  As prefabricated homes, park models are delivered to your site and ready in weeks—not months.
• Customizable Designs
  Choose from a variety of layouts, finishes, lofts, porches, and appliance packages to suit your style and budget.
• Ideal for Guest Housing or Rentals
  Many people use park models to house a loved one or rent them out on Airbnb for extra income.

Cons

• Zoning Restrictions
  Not every city or county allows park model homes as permanent dwellings or backyard units. Always check local zoning laws.
• Depreciation
  Like RVs, park models can depreciate over time—especially if used heavily or not maintained.
• Limited Financing Options
  You won’t qualify for a standard mortgage. Instead, you’ll need an RV loan, personal loan, or pay cash.
• May Not Be a Legal ADU
  Even if you’re placing it in your backyard, it may not qualify as an Accessory Dwelling Unit (ADU) under local laws.
• Smaller Living Space
  With a maximum of 399 square feet, park models offer less room than manufactured homes or larger tiny homes.

Where Can You Put a Park Model Tiny Home

This depends on local zoning.

While park models are more flexible than traditional homes, not every city allows RVs in residential backyards.

They work well in:

• Rural areas
• RV parks
• Tiny home communities
• Unincorporated land

They may not work if:

• Your city bans RVs as permanent dwellings
• Your ADU rules require HUD-compliant or site-built homes

Always check with your local planning office before making a move.

Can You Put a Park Model Tiny Home on a Foundation?

Yes—you can demobilize a park model by removing the wheels and placing it on a permanent foundation.

Many people do this for stability or aesthetics. But here’s the catch:

Even if it’s on a foundation, it’s still legally an RV unless it meets HUD or local building codes.

So you’ll need to check zoning laws before treating it like a permanent ADU.

How Long Do Park Model Tiny Homes Last?

With proper care, a park model tiny home can last 20 to 40 years or more.

The lifespan depends on a few key factors:

1. Build Quality

Park models are built in a factory to RV standards, but many use residential-grade materials like:

• metal roofing
• wood framing
• real insulation
• full-sized appliances

Higher-end models with better construction tend to last longer and require less maintenance.

2. Climate and Location

A park model exposed to harsh weather—like extreme heat, cold, or moisture—will need more upkeep than one in a mild climate.

Adding skirting, sealing seams, and maintaining roofing and siding will extend its life.

3. Foundation vs. Mobility

If it’s placed on a permanent foundation and not moved often, a park model will generally last longer.

Poor setup can reduce the lifespan.

4. Maintenance

Just like any home, regular maintenance makes a huge difference. That includes:

• Checking seals and weatherproofing
• Servicing HVAC and plumbing
• Maintaining roof and siding
• Preventing water damage

Do Park Model Homes Depreciate?

Technically, yes—like most RVs, they depreciate over time. But most people don’t buy them for resale.

They buy them to:

• House a loved one (like a parent or adult child)
• Use as a backyard ADU or guest space
• Rent out on Airbnb or Vrbo

In those cases, the value is in the use, not the resale—and they often pay for themselves quickly.

Do You Need to Register or Insure a Park Model Home?

Since park model homes are classified as RVs, they usually need to be registered through your state’s department of motor vehicles (DMV) or equivalent agency—just like a travel trailer or motorhome.

Registration requirements vary by state, so be sure to check local rules before you set it up.

Insurance for a Park model Tiny Home

You can insure a park model through most RV insurance providers. Coverage often includes:

• Comprehensive and collision
• Personal property coverage (furniture, appliances, electronics, etc.)
• Liability insurance
• Attached structures like porches or decks

When getting a quote, be sure to:

• Estimate the value of your personal belongings inside the unit
• Ask about replacement cost vs. actual cash value coverage
• Keep photos and receipts for any valuables or upgrades, just in case you need to file a claim

Park model RV insurance is generally more affordable than traditional homeowner’s insurance, especially since these homes are smaller and considered personal property.

Final Thoughts

A park model tiny home might not be a traditional house—but for many people, that’s the point.

You get flexibility, comfort, and serious savings—with no property taxes hanging over your head.

If you’re downsizing, adding a guest house, or just want a smarter way to live small, it’s worth a closer look.