What Are the Best Neighborhoods in California for Rental Properties?

When it comes to buying rental properties in California, several neighborhoods stand out due to their desirable characteristics and potential for good returns on investment. According to ManageCasa and California.com, some of the best communities to consider include Douglas City, Yuba City, Elk Grove, Rancho Cordova, Winchester, and Blythe[1][5]. These neighborhoods offer a mix of good schools, safety, job opportunities, and other key factors that attract renters.

In the Northern California region, cities like Redlands and Palm Springs are also considered good places for long-term rental properties[8]. In the Southern California region, Rancho Cordova is highlighted as a great place to invest, especially for those interested in Airbnb rentals due to the city’s large employment sub-center that attracts over 50,000 commuters[5].

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What Are the Average Rental Prices in the Best Neighborhoods for Rental Properties in California?

The average rental prices in these top neighborhoods for rental properties in California vary. For instance, in Douglas City, the median rental price is $2,723, while in Yuba City, it’s $1,741, and in Elk Grove, it’s $1,848[1]. In Rancho Cordova, traditional rent costs differ greatly from Airbnb prices, with the monthly Airbnb rental income being $4,222[5].

In Los Angeles, the average rent for an apartment is $2,742[2], while in San Diego, the typical monthly rental rate is $3,175[10]. It’s important to note that these prices can fluctuate based on factors such as location, size, and quality of the property[2].

Which Neighborhoods in California Have the Highest Rental Prices?

Several neighborhoods in California are known for their high rental prices. According to a study by Zillow, San Jose had the nation’s highest monthly rent with $3,411, followed by New York City’s at $3,405. Other California cities with high rental prices include Los Angeles with a typical rent of $2,983, Riverside with a monthly rent of $2,573, and Sacramento’s at $2,319[10].

In Los Angeles, neighborhoods like Beverly Hills, Manhattan Beach, and Malibu have some of the highest rents, with average rents for a two-bedroom apartment ranging from $5,990 to $8,298[9].

What Factors Contribute to the High Rental Prices in Some California Neighborhoods?

Several factors contribute to the high rental prices in some California neighborhoods. One of the primary reasons is the high demand for housing, especially in California’s coastal areas, and the limited supply. This imbalance drives up the cost of housing[4].

Other factors include expensive land costs in coastal areas, community resistance to housing, environmental policies, and lack of fiscal incentives for local governments to approve housing[4]. The COVID-19 pandemic has also played a role, with low housing vacancy rates, skyrocketing rental prices, and record-breaking inflation exacerbating the financial insecurity of low-income renters[3].

How Have Rental Prices in California Changed Over the Past Five Years?

Over the past five years, rental prices in California have seen significant increases. For instance, typical rent prices have shot up by as much as 40% in places like Bakersfield, Fresno, Visalia, and Riverside in just three years[7].

In both Bakersfield and Los Angeles, average rent rose by a little over $500 since the start of the pandemic[7]. In San Diego, the typical monthly rental rate in June 2023 was $3,175, exceeding San Francisco’s rent of $3,168, representing a significant jump since February when San Francisco’s rents were 29% higher than San Diego’s[10].

What Is the Highest and Lowest Rental Price for a Single-Family Home in California?

The rental price for a single-family home in California can vary greatly depending on the location. For instance, in Los Angeles County, the average rent for a single-family home can go as high as $24,998 in certain zip codes[9]. On the lower end, the average rent for an apartment in California is $1,757[6].


Investing in rental properties in California can be a lucrative venture due to the high demand for housing and the potential for good returns. However, it’s important to carefully consider the location, rental prices, and other factors that can influence the success of your investment. Despite the high rental prices in some areas, there are still plenty of opportunities for investors in various neighborhoods across the state.

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