Yes the land value is so insanely cheaper on un-mortgagable properties in my state, it's off the charts.

I have developed land in my county so I'm familiar with the costs to develop, buy land, place utilities etc. (I did not become a land developer on purpose, only because I realized this absolutely crazy arbitrage)

It would cost you about $200-$250k to buy a rural small acreage land with a manufactured home on it. If you pay cash for the land and drop the exact same manufactured home on it, it would only cost you about $150k, and you would get a brand new house instead of a "used" one.

There is huge pent up demand for someone to just buy a huge swath of small acreage properties and just drop the cheapest manufactured home you could on it as the non-luxury starter home market is currently not being met. You could pretty much double your money. I'm not sure why this isn't being done en masse although a few private actors seem to be doing it and making a killing.