HUD Unveils Plan to Expand Manufactured Housing and Lower Costs

• Author: Wilbert Raynor
• Posted: 2026-10-09

The U.S. Department of Housing and Urban Development is taking new steps to expand manufactured housing, update federal building standards and support more affordable home construction.

HUD’s action plan follows the passage of the bipartisan 21st Century ROAD to Housing Act, which allows manufactured homes to be built with or without a permanent chassis.
 

Why the chassis change matters

A chassis is the steel frame traditionally used as the base of a manufactured home. Removing the permanent-chassis requirement could give builders more flexibility in design, transportation and installation.

Industry experts estimate that eliminating the chassis could reduce construction costs by about $10,000 per home. Lower costs could make manufactured and modular homes more accessible to first-time buyers and families seeking affordable housing.

The law also directs HUD to create revised standards for homes built without a permanent chassis.
 

What HUD plans to change

HUD’s action plan focuses on modernizing manufactured-housing rules, including:

• Energy-efficiency standards.

• Structural design requirements.

• Transportation and lifting standards.

• Foundations, anchoring and connections.

• Factory certification and quality controls.

• Design approvals for new builders.

• Standards for multifamily manufactured housing.

HUD will update the federal construction and safety rules in 24 CFR Part 3280 and the installation standards in 24 CFR Part 3285.

The agency also plans to develop standards for larger and multistory manufactured buildings, including shared systems, common areas and fire separation.
 

Could manufactured housing become more affordable?

Supporters say the changes could help increase housing supply and lower construction costs.

Manufactured and modular construction can reduce building time because components are produced in factories and assembled on-site. This approach may be particularly useful for workforce housing aimed at households earning between 80% and 120% of an area’s median income.

The changes could also make it easier for developers to build starter homes, apartment buildings and other forms of affordable housing.

However, lower construction costs do not automatically guarantee lower home prices. Land costs, permits, financing, transportation, local zoning and utility connections can still make manufactured housing expensive.
 

Zoning remains a challenge

Manufactured housing is governed by federal construction standards, but local governments often control zoning and land-use decisions.

That means cities and counties may have different rules for:

• Where manufactured homes can be placed.

• Whether they can be installed on private lots.

• Foundation requirements.

• Community design standards.

• Multifamily or multistory developments.

Developers say the lack of consistent zoning makes it harder to build manufactured housing nationwide.
 

What happens next?

HUD must begin updating its regulations to comply with the new law. The agency will work on revised technical, safety and energy standards before builders can broadly use chassis-free designs.

States must also update their laws and regulations to treat manufactured homes with and without permanent chassis requirements equally. The Congressional Research Service says states generally have one year after enactment to submit certification, with additional time for states whose legislatures meet biennially.
 

Bottom line

HUD’s manufactured-housing action plan aims to modernize federal codes, expand design options and support more affordable home construction.

Removing the permanent chassis requirement could lower costs and make new types of manufactured homes possible. But zoning, land prices, financing and local approval rules will still determine how quickly these homes reach buyers.

-

Dive into more great content at FindFamilyBenefits and discover expert tips and fresh insights on maximizing your retirement savings, debunking health myths, and more.

Join us today and live your best life!