New Jersey Adopts 3.5% Cap on Manufactured Home Lot Rent Increases

November 6, 2025 — New Jersey Adopts 3.5% Cap on Manufactured Home Lot Rent Increases
(Understanding A3361 / P.L. 2025, c. 85 and What It Means for Residents and Park Owners)

New Jersey has taken a major step to protect residents of manufactured home communities. With the passage and signing of Assembly Bill A3361, (now enacted as P.L. 2025, c. 85), the state has capped annual rent increases for manufactured home lots at 3.5%—a change designed to bring predictability and fairness to one of the state’s most affordable housing options.

What the New Law Does

The law limits any year-to-year increase in lot rent to 3.5%, regardless of inflation, unless the owner successfully applies to the Department of Community Affairs (DCA) for a hardship adjustment. Previously, rent control for manufactured home parks varied widely from town to town—or didn’t exist at all. Now, the cap applies statewide and preempts local ordinances that allow higher increases.

To balance the needs of park operators, the law authorizes the DCA to establish a hardship process through which an owner can request a greater increase by proving that normal rent limits would fail to cover reasonable operating costs or necessary capital improvements.

Legislative Intent

Sponsors Assemblyman Paul D. Moriarty, Assemblyman Bill Moen, and Assemblywoman Lisa McCann Stamato said the goal was simple: to protect long-term residents—many on fixed incomes—from being priced out of their homes, while ensuring that park owners still receive fair returns. The measure received bipartisan support and was signed by Governor Phil Murphy on July 1, 2025, becoming effective immediately.

How It Affects Residents

• Residents can expect stable, predictable increases limited to 3.5% annually.
• Disputes about higher increases must go through the DCA’s hardship review process.
• Tenants’ rights groups have hailed the bill as a safeguard for seniors and veterans living in manufactured home parks across the state.

How It Affects Park Owners and Investors

• Owners must revise annual rent-increase notices to reflect the 3.5% ceiling.
• For increases above that threshold, they must apply to the DCA with full financial documentation.
• Park valuations and income projections should now reflect the statutory limit, which may affect financing and resale calculations.

Broader Impact

Manufactured housing remains one of New Jersey’s most affordable homeownership paths, especially for retirees in communities such as Whiting, Forked River, and Barnegat. By curbing steep rent hikes, the state hopes to stabilize affordability while avoiding displacement in these tight-knit neighborhoods.