GMF Group Positions Manufactured Housing as Scalable Institutional Real Asset 

As institutional capital continues to search for durable yield and downside protection, manufactured housing communities (MHCs) are stepping into the spotlight as one of the most resilient segments within the broader real assets landscape. GMF Group, led by co-founders Gabe Monfried and Matt Forssman, has quietly built one of the leading private platforms in the space, with a growing footprint concentrated in Florida’s high-demand Sunbelt markets.  

Backed by the recent close of their $250 million Fund II and a $65 million CMBS refinancing across 17 properties, GMF is executing a disciplined strategy that blends operational scale, resident-focused upgrades, and steady cash flows — positioning manufactured housing not just as affordable shelter, but as an increasingly sophisticated institutional asset class. 

Monfried, who also serves as managing partner of the Palm Beach-based real estate investment firm, shared his perspective on the evolving MHC market, the firm’s growth trajectory, and why institutional capital is increasingly taking notice. 

CM: Why do you believe MHCs are an attractive alternative asset class, especially in the current economic climate?   

GM: Manufactured Housing Communities (MHCs) have long been considered a recession-resilient asset class, and that reputation has only grown stronger in today’s economic climate. In a market struggling with volatility, rising interest rates, and tightening credit, MHCs continue to stand out for their stability.  

There are several reasons behind this resilience. Operating and maintenance costs tend to be lower than other housing types, especially since most community owners lease the land while the homes are tenant-owned. At the same time, demand for affordable housing is felt across the country, especially in high-growth Sunbelt markets where housing costs are rising.  

What also makes MHCs compelling is their unique combination of financial returns and social impact. Investors are achieving returns, while their capital also addresses housing affordability, one of the country’s most pressing challenges.   

CM: What makes Florida such a strong market for manufactured housing communities (MHCs)?   

GM: In my opinion, Florida continues to be one of the strongest markets for MHCs, driven by a mix of demographics, lifestyle appeal, economic growth, and supply/demand considerations. Retirees and downsizers are still a major demographic, drawn to the affordability, low maintenance lifestyle, and community amenities like pools, clubhouses, and organized activities.  

However, they are not the only age group that utilizes this asset class. Florida’s job growth, population growth, and tax advantages have attracted younger families and renters that have been priced out of traditional housing options and/or tenants who prefer MHC living to apartment living. MHCs often provide a more spacious and affordable alternative to apartment living, especially in areas where single-family is limited or too expensive.  

The weather and lifestyle of Florida also contributes to resident satisfaction. Year-round outdoor activities support retention and community engagement.  

CM: How do MHCs compare to other affordable housing options in terms of investment potential?   

GM: MHCs have historically generated consistent returns, but interest has certainly picked up in recent years. Investors are drawn to the high barriers of entry, revenue/income growth potential, lower recurring maintenance costs, and recession resilience of MHCs relative to other real estate asset classes.   

MHCs also represent the largest source of non-subsidized affordable housing in the country, serving tens of millions of Americans. Unlike subsidized housing, these communities are financed and operated by private investors, offering a market-driven solution to the affordable housing crisis without relying on government support.  

Resident turnover is typically much lower than in multifamily, since relocating a manufactured home is expensive and logistically complicated. That translates to longer tenancies, reduced vacancy risk, and more predictable cash flow.  

CM: How do MHC cap rates compare with other real estate asset classes today, and what’s driving that trend?   

GM: Cap rates for MHCs tend to be slightly more compressed than those for traditional multifamily. Even as interest rates have risen, MHCs have held their value better than many other property types. This is largely due to supply constraints, rising demand, and the sector’s attractive fundamentals.  

Transaction volume remains strong because high occupancy rates, more predictable cash flows, and relatively low delinquency make MHCs an attractive target for both institutional and private investors. We’re also seeing cap rate compression driven by competition for quality assets because of the lack of supply.  

CM: There’s growing institutional interest in MHCs. What do most investors still misunderstand about the space?   

GM: A big misconception is that MHCs are outdated, poorly maintained, or full of difficult tenants.  In reality, many communities are clean, safe, and home to working families, retirees, and individuals who simply want quality housing at a reasonable price.  

The homes themselves are often modern and well-built, and once you’re inside, manufactured homes can feel just like a traditional home. Many tenants prefer MHCs to apartments because they offer private yards, amenities, a neighborhood feel, and more personal space.  

CM: How do you think about exit strategy—hold periods, recapitalizations, or potential REIT buyers down the line?   

GM: Our focus is firmly on growth and reinvestment. We recently acquired our 50th property, which represents both a milestone and a recommitment to our long-term strategy. We prioritize resident-first improvements, asset performance, and community health.   

CM: What legislative or regulatory changes—at the state or federal level—would have the most impact on the MHC sector?   

GM: One of manufactured housing’s greatest challenges is supply. The development of new MHCs remains hindered by restrictive local zoning codes. These regulations are frequently rooted in the mistaken belief that MHCs lower surrounding property values, despite evidence to the contrary. In key regions across the U.S., particularly in the Southeast, supply remains limited despite growing demand.  

If we want to truly address the affordable housing crisis, local governments need to reevaluate these policies. By encouraging the responsible development of manufactured housing, especially in areas facing severe housing shortages, we could open the door to thousands of new homes without requiring major public subsidy.  

CM: Where do you see the MHC sector in 5–10 years?   

GM: I see the MHC sector playing an even more central role in solving America’s housing shortage. The fundamentals of strong demand, limited supply, operational efficiency, and meaningful impact are there and are not slowing down.  

I also expect to see more innovation, particularly in community design, energy efficiency, and integration of services. There’s an opportunity to bring quality back into the conversation around affordable housing, and shift people’s perspectives away from negative and outdated stereotypes.  

Long-term, I hope we see meaningful expansion of this sector into underserved areas, and more capital for operators who prioritize community engagement and long-term investment.