Ask David: How Do Manufactured Homes Differ from Modular Homes?

If you’ve ever found yourself wondering whether a property is manufactured, modular or something else entirely, you’re not alone. These terms often get mixed up — even in MLS listings — but they mean very different things. Knowing the difference isn’t just helpful for your clients; it’s also critical for accurate listing input and compliance with NorthstarMLS rules.

Let’s break it down.

Manufactured Homes: Built to HUD Standards

Manufactured homes (formerly called mobile homes) are factory-built dwellings constructed to meet the federal Department of Housing and Urban Development (HUD) Code, a set of national standards overseen by the U.S. Department of Housing and Urban Development.

Every manufactured home must have a HUD certification label (the red metal tag) and a HUD data plate inside. These verify that the home meets specific safety, energy efficiency and durability standards.

Key points about manufactured homes:

• They are built on a permanent metal chassis.
• They are designed to be transported to a site and installed on a permanent or semi-permanent foundation.
• They are considered real property only once titled and affixed to land in accordance with local regulations.
• Financing, appraisal and insurance are handled differently from site-built or modular homes because of their HUD classification.
• Manufactured homes on leased land can be listed in the MLS.

Manufactured homes are not RVs or park models. RVs are built for temporary or recreational use and are classified under the RVIA (Recreational Vehicle Industry Association), not HUD. Listing an RV as a manufactured home misrepresents the property and may violate MLS rules, since these dwellings don’t qualify for the same financing or zoning standards.

You can find more details on NorthstarMLS listing requirements for manufactured homes here.

Modular Homes: Built to State and Local Building Codes

Modular homes are also factory-built, but they follow an entirely different set of standards. Instead of HUD codes, modular homes are built to the same local and state building codes that apply to traditional stick-built houses.

Here’s what makes them distinct:

• Modular homes are constructed in sections (“modules”) in a factory, then transported and assembled on-site on a permanent foundation.
• Once completed, they’re indistinguishable from site-built homes in terms of structure, materials and value.
• They are appraised, taxed and financed just like traditional homes.

In short, think of modular homes as factory-built site homes, while manufactured homes are factory-built HUD homes.

What About Tiny Homes and RVs?

Not all small or mobile dwellings count as manufactured homes.

• Tiny homes can fall into several categories: some meet HUD standards (making them manufactured homes), others follow modular or local codes, and many are simply RV-style park models.
• RVs and park models, no matter how nice, are not dwellings built to HUD code and should not be entered as residential listings in NorthstarMLS.

If an RV or tiny home doesn’t meet HUD or local residential building codes, it should be listed as a lot with an outbuilding, not as a home.

Why Accuracy Matters

When agents list an RV or non-HUD structure as a manufactured home, it can mislead buyers into thinking they qualify for traditional home loans, property insurance and residential zoning — when they don’t. That not only violates MLS rules but also risks fines and disciplinary action.

If you’re unsure whether a home meets HUD specifications, check for the red HUD label or documentation before listing. When in doubt, reach out to NorthstarMLS Rules & Regulations Support for clarification.

Key Takeaways

• Manufactured homes = HUD-coded, built on a metal chassis, can be moved, permanent once affixed
• Modular homes = Built to state/local codes, assembled on-site, same as stick-built homes
• RVs and park models = Not homes; do not meet HUD or residential code
• Listing accuracy protects consumers, agents and the integrity of the MLS

Need Help?

For more questions about manufactured or modular homes and your real estate listings, contact the Rules and Regulations department at rules@northstarmls.com or call 651-251-3210, the NorthstarMLS Help Desk at help@northstarmls.com.