How much does it cost to open a campground?

Opening a campground costs $100,000 to $1 million depending on land costs, number of sites, and amenity level. A basic tent camping operation on owned land starts at the lower end, while a full-service RV park with 50+ hookup sites, bathhouse, and recreation facilities approaches $1 million. Land and site development are the two largest costs.

Is owning a campground profitable?

Well-managed campgrounds can be quite profitable with net margins of 20 to 40 percent once established. Revenue comes from nightly fees ($25-$80), seasonal rates, and ancillary income from camp stores, firewood, and activities. Campgrounds near national parks and lakes perform best. Seasonality is the biggest challenge, as many operate only 6 to 8 months per year.

What is the difference between a campground and an RV park?

RV parks require significantly more infrastructure. Each RV site needs a level pad, electrical hookups (30/50 amp), water connections, and sewer access at $3,000 to $8,000 per site versus $500 to $1,500 per tent site. However, RV sites command $35 to $80 per night versus $20 to $40 for tent sites and attract longer-stay guests.

Campground Startup Cost Comparison

Madison, WI vs Houston, TX

Madison, WI

$100,000 - $982,000

COL Index: 102.5

Houston, TX

$109,000 - $1,101,000

COL Index: 96.5

Detailed Cost Comparison

Expense	Madison, WI	Houston, TX	Difference
Business Registration & Licenses	$1,000 - $5,000	$1,900 - $6,200	-26%
Land Purchase or Lease	$30,000 - $400,000	$41,100 - $547,800	-27%
Site Development & Infrastructure	$29,400 - $294,000	$27,600 - $276,000	+7%
Bathhouse & Facilities	$14,700 - $117,600	$13,800 - $110,400	+7%
Equipment & Amenities	$8,000 - $50,000	$8,000 - $50,000	Same
Business Insurance (Annual)	$4,000 - $18,000	$4,000 - $18,000	Same
Marketing & Reservation System	$3,000 - $15,000	$3,000 - $15,000	Same
Working Capital (6 Months)	$10,300 - $82,000	$9,700 - $77,200	+6%
Total Estimated Cost	$100,000 - $982,000	$109,000 - $1,101,000	-11%

Local Market Factors

Factor	Madison	Houston
Cost of Living Index	102.5	96.5
Commercial Rent ($/sqft/yr)	$14 - $32	$18 - $45
Labor Rate Index	0.98	0.92
Sales Tax	5.5%	8.25%
Minimum Wage	$7.25/hr	$7.25/hr
LLC Filing Fee	$130	$300

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