Manufactured housing just hit a turning point. Congress passed the 21st Century ROAD to Housing Act, and HUD has since published an action plan for the next generation of manufactured homes. I work with buyers and sellers of manufactured homes in Sedona and Cottonwood, so clients are starting to ask what it means for them.
Here is the honest short version: nothing changes in a deal you are doing this year. But the direction of travel matters if you are buying, selling, or holding land in the Verde Valley. Below is what actually changed, what has not, and what I would ask before acting on any of it.
What actually changed
For decades, the defining feature of a HUD-code manufactured home was its permanent steel chassis. Section 301 of the 21st Century ROAD to Housing Act removed that requirement. Under the law, homes certified under the federal HUD Code can be built and shipped nationwide with or without a permanent chassis. HUD still has to write the technical standards for the chassis-free versions, which is covered below.
HUD’s plan says that opens the door to new designs, new foundation and installation methods, multi-section and multistory construction, and a closer link between manufactured housing and other kinds of off-site construction. It also commits HUD to updating manufactured home energy efficiency standards. At its July 23, 2026 meeting, the federal advisory committee on manufactured housing reaffirmed its 2022 energy recommendations, and HUD will now write rules around them.
What has not changed yet
The law removed the chassis requirement, but the technical rules for homes built without one are still to be written. HUD has to update its construction and safety standards and its installation standards, with input from the advisory committee, before these homes become a routine product. HUD’s own action plan calls itself a framework for that work, not a final rule.
Two other things are not changing on their own:
- Zoning is local. The federal HUD Code preempts state and local building codes for these homes. It does not override zoning. Where a manufactured home can go is still decided town by town, and Sedona, Cottonwood, Clarkdale and unincorporated Yavapai County may not all treat them the same way.
- Lending, appraisal, and insurance rules are set by those industries. HUD plans to publish case studies on how early chassis-free projects handled zoning, appraisal, lending, insurance and market acceptance. Until that happens and lenders respond, financing a chassis-free home will be unproven.
What this means if you are buying
If you are shopping for a manufactured home in Sedona or Cottonwood today, you are still buying under today’s rules: today’s financing, today’s appraisal practices, and today’s local zoning. I would not delay a purchase waiting for chassis-free homes. They are not available as a mainstream product, and no one can yet tell you how they will appraise or finance.
What I would do is ask three questions on any manufactured home: is it titled as real property or personal property, what financing is realistic for it, and what do local zoning and any HOA allow. Those answers matter more than the age of the technology. If you are weighing options at a lower price point, my guide to Sedona homes for sale under $900K shows what the traditional market looks like for comparison.
What this means if you are selling
New energy standards will likely make new manufactured homes more efficient, and usually that comes with a higher price. Over time, that can widen the gap between newer units and older ones, which affects how buyers and appraisers compare your home to recent sales. It will not happen overnight, and an older home in a good location is still priced on its own comparables. If you want a read on how your home fits today, I can pull comparables.
What this means if you own land
The most interesting long-term effect is probably on land. If chassis-free, multi-module homes become a lower-cost way to build, a vacant lot in the Verde Valley could become more buildable than it looks today. That depends entirely on local zoning, utilities, and site conditions, which is why I tell land buyers to do their homework first. Start with my 12 important rules for buying land in Sedona.
What I am watching
- HUD’s proposed rules for chassis-free construction and for foundations and installation.
- HUD’s case studies on zoning, appraisal, lending and insurance for the first chassis-free projects.
- How local jurisdictions in Sedona and the Verde Valley respond on zoning.
- Any lender or appraiser guidance for these homes.
I will update this page as those pieces land. If you are buying or selling a manufactured home in Sedona or Cottonwood and want to talk through your situation, schedule a call or send me a note.
Disclaimer: William Hamburg is an Associate Broker with Realty ONE Group Mountain Desert in Sedona, Arizona. This post summarizes publicly available information about federal manufactured housing policy as of its publication date and reflects his general observations. It is not legal, tax, lending, or investment advice. Federal rules are still being developed and may change. Verify zoning, title, and financing details with the appropriate local authority and professionals before making any property decisions.