How Are Lot Rents Calculated?

 Camelot’s annual increase in lot rents uses a formula based on the CPI-U, the Consumer Price Index-Urban (we are linked with Wilmington, an urban center, even though Rehoboth is considered rural for car insurance purposes).

Five years ago, the formula shifted away from being based on a three-year average of the CPI-U. Instead, it became a 3.5% increase, plus 50% of the CPI-U (which, in May of 2026, was 3.842%).

That made the maximum legally allowed increase 5.421% (which is still less than 6.1%, the percentage park owners cannot increase their rents by, even if the CPI-U exceeds 6.1%, in any given year.)

This dual-percentages formula was supposed to be followed for five years, before reverting to the previous formula, the three-year CPI-U average.

However, earlier this year (year five), the expected reversion to the previous formula was cancelled. We don’t know whether we will remain on the increased formula, or not. The Camelot Board will send a notification to the membership mailing list, once we know the answer.

But this is the reason our lot rents increased so markedly this year. The increase reflects the higher CPI-U, which pushed the increase closer to the maximum percentage allowed by law, under the Manufactured Home Owners and Community Owners Act, also known as 25 Delaware Code Chapter 70. Further, this increased CPI-U reflects the high inflation that resulted from the global tariffs levied by the Trump Administration.