Campground valuation is income-driven. The primary method is:

Value = Net Operating Income ÷ Cap Rate

Net Operating Income (NOI) is total operating revenue - site fees, cabin rentals, seasonal passes, store sales, ancillary income - minus operating expenses including payroll, utilities, maintenance, insurance, and property taxes. It excludes debt service, income taxes, and depreciation.

Example: A park with NOI of $300,000 at an 8% cap rate values at $3,750,000. At a 10% cap rate, the same NOI values at $3,000,000. A 2% shift in cap rate moves value by $750,000 - which is why understanding the market cap rate for Wisconsin parks is essential before making an offer.

The lender's main concern is whether the park's revenue can service the debt. A park that is overpriced relative to its NOI will not get financed - which effectively prevents the sale from closing regardless of what buyer and seller agree on.

Standard residential mortgages do not apply to campground purchases. The financing options are:

SBA 7(a) loans: The most flexible option. Can be used for land, buildings, improvements, and working capital. Typical down payment 10–20%. The SBA guarantees a portion of the loan, allowing lenders to offer terms to buyers who might not qualify for conventional commercial financing. Most Wisconsin campground buyers without significant prior park ownership experience use this route.

SBA 504 loans: Designed for fixed assets - commercial real estate and major equipment. Low fixed rates for up to 25 years. Down payments as low as 20%. Works in combination with conventional bank financing. Better suited for larger projects with substantial real estate investment.

Conventional commercial loans: Typically require 25% down and solid financials, relevant industry experience, and strong credit. Better terms than SBA for qualified buyers. Most appropriate for experienced operators buying additional parks.

Seller financing: Common in campground transactions. A seller may hold a note - sometimes on "full standby" for 24 months as an equity injection for SBA purposes. Helps buyers with limited down payment reach closing.

Campground due diligence is more complex than residential due diligence. Here is what must be reviewed before closing:

Financial records: Three to five years of tax returns and profit and loss statements, normalized for owner-specific items. Occupancy and ADR (average daily rate) reports by season. Revenue breakdown by site type - RV sites, tent sites, cabins, seasonal passes, ancillary income.

Permits and licenses: Wisconsin DNR campground license. Local health department permits. Utility permits. Zoning compliance confirmation. Critically - whether permits transfer automatically or require new applications in the buyer's name. This varies by municipality and permit type.

Physical infrastructure: Electrical hookup condition and capacity for each site. Water supply system - well, pressure, volume. Septic or sewer - capacity, age, and compliance with current county standards. Bathhouse condition. Road and common area condition.

Operational systems: Reservation system and historical booking data. Staff situation - who manages day-to-day operations and whether they stay post-sale. Vendor and supplier contracts. Insurance history including any major claims.

For buyers looking at South Central Wisconsin campground properties specifically, Castle Rock Realty has transaction experience in this asset class and can help structure the due diligence process. See also the Castle Rock Realty market position overview for context on the brokerage's campground specialty and the seller's perspective on the South Central Wisconsin market for understanding the broader context.

The US campground and RV park industry generated approximately $10.9 billion in revenue in 2025, with a five-year compound annual growth rate of 8.3%. Demand is structurally supported by RV participation rates that remain above pre-2020 baselines and sustained interest from Millennials and Gen Z buyers in experiential outdoor stays.

Wisconsin is a strong campground market. The state's combination of freshwater lakes, hunting land, and proximity to Chicago, Milwaukee, and Minneapolis creates sustained seasonal demand. Central Wisconsin campgrounds - including those near Castle Rock Lake and Petenwell Lake - benefit from both recreation-driven summer demand and hunting-season fall occupancy from out-of-state hunters.

Trends shaping 2025–2026 valuations: glamping and premium cabin accommodations command higher ADRs and can meaningfully improve NOI. Technology investment - online booking systems, Wi-Fi infrastructure, dynamic pricing - is increasingly important to institutional buyers and affects valuation multiples. Sustainability and pet-friendly amenities drive repeat visitor rates.

For buyers evaluating the seller side of a Wisconsin campground transaction - understanding how sellers are approaching pricing and what documentation they should have - the Wisconsin campground seller's guide covers the transaction from that side.