Flag City MHC

Executive summary

Flag City is a 258-site manufactured housing community located in Millington, Tennessee, just 9 miles north of the Memphis MSA. The property is comprised primarily of tenant-owned homes, providing stable, low-maintenance cash flow, with additional upside through the sale of existing park-owned homes or conversion to rent-to-own contracts. The community is currently operating at approximately 78% occupancy, offering a clear value-add opportunity through the infill of 34 vacant sites, and 23 vacant park-owned homes. Public water and sewer are billed back to residents, while trash is included in rent. Electricity and gas are direct billed to the tenants.

Flag City features an average in-place lot rent of approximately $532 per month with room for growth supported by strong regional demand for affordable housing in the Memphis metro. The ability to monetize park-owned homes through sales or RTO conversions provides an additional revenue lever while improving long-term tenant stability. The property also includes 16 approved expansion sites with completed plans, allowing for immediate organic growth without entitlement risk and the potential for further site development. An owner could likely increase this expansion to 20+ sites.

Millington benefits from its proximity to the Memphis MSA, a major national logistics and distribution hub anchored by employers such as Amazon, Nike, and FedEx, and supported by a population of approximately 1.34 million. The local economy is further stabilized by the Naval Support Activity Mid-South, which employs more than 7,500 personnel and provides consistent housing demand. The City of Millington is also engaged in various development projects, bringing more jobs and revenue to the local economy. Major projects include Forked River Commons ($58 million shopping center), Millington Farms ($100 million multi-use), and the Astoria ($150 million multi-use). The International Hot Rod Association has also just begun renovations on the previous Memphis International Raceway, and the organization is expected to begin hosting events by Fall 2026.

With average 2 bedroom apartment rents at $1,350 and a continued shortage of affordable housing options, manufactured housing communities in the submarket are well-positioned for sustained occupancy and rental growth, supporting long-term fundamentals for investors.