NAICS 485113 Quarterly Industry Report
Bus and Other Motor Vehicle Transit Systems
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 485113Sector: 48Updated: Q1 2026
About This Report
This industry report for NAICS 485113 draws on transit service data from the U.S. Census Bureau[5], employment and wage statistics from the Bureau of Labor Statistics[6], and small business lending benchmarks from the Small Business Administration[7]. Fair Market Value compiles this NAICS 485113 profile to support valuation professionals assessing private bus contractors, fleet operators, and transit service companies. Our research team updates this content quarterly to reflect fleet technology changes and transit funding developments.
Industry Snapshot
Key metrics for the bus and other motor vehicle transit systems industry.
Industry Definition & Overview
Bus and Other Motor Vehicle Transit Systems (NAICS 485113) encompasses establishments operating local and suburban passenger transit using buses, trolleybuses, and other rubber-tire motor vehicles along fixed routes and published schedules. The U.S. Census Bureau[5] classifies these operations separately from rail-based transit and mixed mode systems, focusing on agencies and companies that rely exclusively on motor vehicle technology for urban passenger service.
Bus transit forms the most widespread public transportation mode in the United States, serving cities of every size from small college towns to major metropolitan areas. Revenue comes from passenger fares, federal formula grants administered by the Federal Transit Administration, state transportation funds, and dedicated local tax revenues. Operating costs center on driver wages, fuel or electricity for battery-electric buses, vehicle maintenance, and insurance. Fleet composition has shifted in recent years as agencies adopt compressed natural gas, diesel-electric hybrid, and fully electric buses to meet emissions reduction goals.
Workforce needs span bus operators, diesel and electric vehicle mechanics, dispatchers, and administrative personnel. Labor expenses typically represent the largest single budget line item, often exceeding 65 percent of total operating costs. Service planning revolves around ridership analysis, with agencies adjusting route frequency, span of service, and coverage area to balance rider demand against available funding. Bus rapid transit corridors with dedicated lanes and level-boarding stations have emerged as a cost-effective alternative to rail expansion in many mid-size cities.
What's Included in This Industry
- Fixed-route local bus service within urban and suburban areas
- Trolleybus operations using overhead electric power on fixed routes
- Bus rapid transit corridors with dedicated lanes and stations
- Express bus commuter service connecting suburbs to downtown centers
- Circulator and shuttle bus routes serving activity centers and campuses
- Demand-response paratransit service operated as ADA complement to fixed routes
- Park-and-ride lot operations connected to express bus service
- Fare collection and passenger information systems for bus networks
- Fleet maintenance for diesel, hybrid, CNG, and electric buses
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Transit and Ground Passenger Transportation | 485 |
| Industry Group | Urban Transit Systems | 4851 |
| NAICS Industry | Urban Transit Systems | 48511 |
| National Industry | Bus and Other Motor Vehicle Transit Systems | 485113 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 485111 | Mixed Mode Transit Systems | Mixed mode transit systems combining bus with rail service under unified management, while 485113 covers bus-only transit operations exclusively |
| 485112 | Commuter Rail Systems | Commuter rail systems providing passenger service on fixed rail infrastructure, distinct from the rubber-tire motor vehicle operations defining 485113 |
| 485119 | Other Urban Transit Systems | Other urban transit systems using modes like monorail or inclined railway that do not fit the standard bus or rail classifications |
| 485210 | Interurban and Rural Bus Transportation | Interurban and rural bus transportation providing intercity and regional connections over longer distances than the local routes served by 485113 |
| 485410 | School and Employee Bus Transportation | School and employee bus transportation providing closed-door service for specific groups rather than general public transit along fixed routes |
| 485510 | Charter Bus Industry | Charter bus service providing group transportation on a hired basis, contrasted with the scheduled public service offered by 485113 operators |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 21.8% | 114 |
| 2 | New York | 12.6% | 66 |
| 3 | Florida | 7.1% | 37 |
| 4 | Illinois | 5.0% | 26 |
| 5 | Texas | 5.0% | 26 |
| 6 | New Jersey | 5.0% | 26 |
| 7 | Maryland | 4.2% | 22 |
| 8 | Minnesota | 2.7% | 14 |
| 9 | Virginia | 2.7% | 14 |
| 10 | Massachusetts | 2.7% | 14 |
% Of Establishments
0%
22%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
16
Total SBA Loans
$28.0M
Total Loan Volume
$1.7M
Average Loan Size
10 yrs
Average Loan Term
10.00%
Average Interest Rate
240
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The Small Business Administration[7] sets the size standard for NAICS 485113 at $32.5 million in average annual receipts, measured over the preceding five completed fiscal years. Private bus operating contractors and smaller municipal systems may qualify as small businesses under this threshold. Eligible firms can access SBA 7(a) loans[8] for bus fleet acquisition, maintenance equipment, and technology upgrades including fare collection systems. The SBA 504 loan program[9] supports real estate purchases for bus maintenance garages, operations centers, and transit facility construction. Federal contracting opportunities exist for private operators providing bus transit service under contract to public agencies.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Dogwood State Bank | 8 | $24.0M | $3.0M |
| 2 | JPMorgan Chase Bank, National Association | 8 | $4.0M | $500K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 485113?
This classification covers public transit agencies and private companies that operate local bus service on fixed routes within urban and suburban areas. Examples include municipal bus systems, private contractors operating transit routes under public agency agreements, and trolleybus operators using overhead electric power. The U.S. Census Bureau[5] requires that these operators use only motor vehicle modes, excluding any rail component.
How is NAICS 485113 different from charter or school bus codes?
Bus transit under 485113 provides scheduled public service along fixed routes that anyone can ride by paying the posted fare. Charter bus service under 485510 provides vehicles on a hired basis for group trips without fixed schedules. School bus operations under 485410 serve specific student populations on closed routes. The public access and fixed-schedule elements distinguish transit bus operations from these other bus service categories.
What is the SBA size standard for NAICS 485113?
The Small Business Administration sets the size standard at $32.5 million in average annual receipts over five years. This threshold covers both direct transit operators and private contractors providing bus service under public agency agreements. Details are available in the SBA size standards table[10].
What NAICS codes are closely related to bus transit?
Related codes include 485111 for mixed mode transit, 485112 for commuter rail, 485119 for other urban transit modes, 485210 for interurban bus service, 485410 for school and employee bus transportation, and 485510 for charter bus operations. The local fixed-route public service element separates 485113 from intercity, charter, and private contract bus operations.
What industries are connected to bus transit systems?
Connected industries include bus manufacturers, fuel and electric charging infrastructure providers, highway construction firms building transit corridors, and consulting firms specializing in transit planning. Advertising agencies managing bus shelter and vehicle advertising programs generate revenue that supplements transit funding. Real estate developers near transit stops benefit from increased pedestrian traffic and property values.
What activities are included in NAICS 485113?
Included activities cover operating fixed-route bus service, bus rapid transit corridors with dedicated lanes, express commuter bus routes, demand-response paratransit as an ADA complement, and circulator shuttles serving activity centers. Fleet maintenance across diesel, hybrid, CNG, and battery-electric vehicle types also falls within this code. The U.S. Census Bureau[5] includes all motor vehicle transit modes operated on published schedules.
Can bus transit operators get SBA loans?
Private bus transit contractors and small municipal operators under the $32.5 million revenue threshold can access SBA financing. The 7(a) program[8] supports bus purchases, maintenance equipment, and fare technology investments. Industry 504 program[9] finances maintenance facility construction and operations center real estate. Working capital lines help manage the cash flow timing gaps between service delivery and government reimbursement.
Where are bus transit systems most prevalent in the United States?
Bus transit operates in virtually every city and metropolitan area, making it the most geographically dispersed public transportation mode. The largest bus fleets serve New York, Los Angeles, Chicago, and Houston. Mid-size cities rely almost exclusively on bus service for public transit, as rail infrastructure costs exceed their funding capacity. Rural transit districts also operate bus service connecting small towns with regional centers, though at lower frequencies than urban systems.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]Small Business Administration sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]SBA 504 loan program sba.gov
- [10]SBA size standards table sba.gov
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