Affinity by Vantem News

Regulatory Differences Between Modular and Manufactured Homes

Written by Affinity | Aug 6, 2025

Distinctions Matter – Modular vs Manufactured

As housing needs evolve and demand for efficient construction methods grows, the lines between modular and manufactured homes have become increasingly blurred—not just in appearance, but also in how they are regulated. A recent article from the Modular Home Builders Association (MHBA), "Manufactured vs. Modular Homes: Blurred Regulations", dives into the critical distinctions that matter to builders, policymakers, and homebuyers alike.

At Vantem, we’re proud to build true modular homes—structures that are built to the same local and state building codes as site-built homes. Unlike manufactured homes, which follow the federal HUD code and often face stricter zoning restrictions, modular homes are inspected and approved under the same codes that apply to traditional new construction. However, as the MHBA points out, a growing trend of marketing manufactured homes as “modular” is causing confusion in both the marketplace and regulatory environments.

This mislabeling not only misleads buyers, but also threatens the reputation and growth of the modular industry. Modular homes offer high-quality construction, design flexibility, and long-term value—but they must be clearly distinguished from HUD-code homes that may not meet the same standards for financing, resale, or land use.



What’s at Stake?
  • Zoning and Permitting Confusion: Communities may begin lumping all off-site construction into one category, resulting in unfair restrictions or delays for modular projects.
  • Consumer Trust: Buyers expect transparency. When manufactured homes are mislabeled as modular, it undermines trust in the entire industry.
  • Industry Integrity: Builders who comply with state and local building codes deserve to be recognized for the higher standards they meet.

As the industry grows, clear labeling, transparent marketing, and consistent regulation are more important than ever. At Vantem, we are proud members of MHBA and support MHBA’s efforts to maintain the integrity of the modular housing space and educate both consumers and policymakers on the importance of accurate classification.

We believe the future of housing is modular—but only if the standards remain strong and distinct.