If you are accepting payments from your mother-in-law, then yes, you would consider the mobile home to be a rental. Rental income and expenses (including the mortgage interest) would need to be reported on a Schedule E on your individual return. However, there are certain requirements that must be met in order for you to avoid limitation of the amount of expenses that you can claim against the income you are receiving, especially since you are "renting" to a related party (unless your mother-in-law pays rent equivalent to the fair rental value for that area).
Here is a link to IRS Pub 527 with additional information regarding rental income: IRS Pub 527
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