Selma, NC — Mobile Home Park Investments

Selma, North Carolina is one of those market-adjacent towns that experienced investors pay attention to precisely because most others don’t. Adjacent to Smithfield in Johnston County, Selma sits at the intersection of I-95 and US-70, a location that has shaped the town’s economy and created consistent demand for affordable workforce housing. This guide explores what makes Selma worth a closer look for mobile home park investors focused on the Raleigh-Durham growth market.

Selma Market Overview

Selma’s city population is approximately 7,500–8,000, making it a small but economically active community. The town is effectively part of the Smithfield-Selma metro area — the two communities are contiguous, with Selma positioned as the more commercial and industrial center. The I-95/US-70 interchange area around Selma has attracted significant distribution and logistics activity, making it a genuine employment hub for Johnston County’s working population.

Johnston County’s rapid growth (40%+ since 2010) benefits Selma as part of the broader county growth story, even if Selma’s own population growth has been more modest. The key demographic driver for manufactured housing investors is the large workforce population employed in distribution, retail, and industrial facilities at or near the I-95 interchange — workers who need affordable, well-located housing close to their jobs.

Why Selma for Manufactured Housing Investment

• I-95 interchange proximity: The area around Selma’s I-95/US-70 interchange has multiple large employers, creating stable workforce demand for nearby affordable housing.
• Antique district: Selma is known regionally as an antiques center, drawing tourists and supporting local retail — a sign of community economic health and activity beyond just commuter bedroom functions.
• Low entry costs: As a smaller town adjacent to Smithfield, Selma offers lower land and park acquisition costs while sharing in Johnston County’s overall growth dynamics.
• Stable workforce tenancy: Distribution and logistics workers tend to be stable, long-term tenants — they need to live close to work and have regular shift schedules that support consistent rent payment.

Local Lot Rent Data and Trends

Lot rents in the Selma area currently range from approximately $400–$435 per month for well-maintained communities, with some older parks still operating in the $340–$370 range. The gap between below-market rents in aging parks and current market rates represents the core value-add opportunity in this market. Rent increases of $40–$80/month over 2–3 years, when supported by genuine community improvements, are achievable and well-supported by the local income base.

Zoning and Permitting Landscape

Selma and Johnston County share zoning jurisdiction along the interchange area. Manufactured housing is a permitted use in multiple residential and mixed-use zones in both city and county. As with neighboring Smithfield, the most important regulatory due diligence involves confirming grandfathered status, any conditional use permit conditions, and confirming no outstanding health department or building inspector actions against the specific property under consideration.

Infrastructure: Water and Sewer

Selma operates a municipal water system, and most of the town’s developed area is on city water. Sewer service through Johnston County Public Utilities extends to much of the interchange area. As with all NC markets, mobile home parks on full municipal water and sewer connections are the safest infrastructure play — they eliminate private utility liability and make the asset significantly more financeable and ultimately more saleable.

Proximity to Raleigh-Durham Employment Centers

Selma’s employment access mirrors that of Smithfield, with some additional advantages:

• I-95 North/South: Access to both Raleigh (30 miles) and Fayetteville (50 miles south) expands the employment range for residents.
• Local interchange employers: Distribution facilities, warehouses, and retail at the I-95/US-70 interchange provide jobs essentially adjacent to the community.
• Clayton/Four Oaks: Nearby Johnston County communities with their own growing employment bases are accessible via US-70.

Frequently Asked Questions: Mobile Home Park Investing in Selma, NC

How does Selma compare to Smithfield for mobile home park investing?

Selma and Smithfield are functionally one market and should be evaluated together. Selma tends to have slightly lower land costs and may offer better entry pricing on park acquisitions. Smithfield has a larger employment base and slightly more established infrastructure. For an investor, the specific park’s characteristics (size, infrastructure, occupancy, rents) matter far more than which side of the town line it sits on.

What types of tenants typically live in Selma-area mobile home parks?

The primary demographic is working-class families employed in distribution, logistics, manufacturing, and retail. Many are long-term Johnston County residents. The I-95 corridor nature of Selma also means some tenant turnover from transient workers, so park operators benefit from having clear lease policies and established community rules that attract stable, family-oriented residents.

Is now a good time to buy a mobile home park in the Selma/Johnston County area?

Johnston County’s growth trajectory remains strong as of 2025, and the supply of quality affordable housing has not kept pace with demand. While cap rates have compressed modestly from their peaks, parks with genuine below-market rents or operational upside still offer attractive risk-adjusted returns. The key is paying the right price relative to current income, not pro forma income.

Are there infrastructure risks specific to older parks in this area?

Older parks — those established in the 1960s–1980s — may have aged water lines (galvanized or pre-PVC), undersized electrical pedestals, and septic systems near their useful life. A thorough infrastructure assessment as part of due diligence is essential. Budget for potential water line, electrical, and road surface upgrades in your acquisition underwriting.

Related reading: Smithfield, NC Market Guide | Clayton, NC Market Guide | Raleigh, NC Market Guide | North Carolina Mobile Home Park Investing Overview