Real Estate Investing in Downey, California (90240)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 90240 (Downey, CA)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 25.8 — hard to cash-flow at these prices.
What’s happening in Downey, CA (90240)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 90240 Downey
Not every below-median market is a bargain. Downey's 90240 ZIP comes in at signals that favor experienced operators who can absorb the risk $944K pricing implies.
Distressed markets are won on execution, not on spreadsheets. ZIP 90240 reflects the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Statewide comparisons place 90240 among CA's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Demographically, 90240 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
New investors are better served looking at Downey's stable or hybrid ZIPs before stepping into 90240. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Downey:
Property Strategy for 90240
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $744,637 | $2,700 | 2.6% | +5.6% | $372,318 |
| 3BR | $880,122 | $3,420 | 2.8% | +5.5% | $293,374 |
| 4BR | $1,068,495 | $3,810 | 2.6% | +6.3% | $267,124 |
| 5BR | $1,457,984 | — | — | +7.1% | $291,597 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 90240 Compare?
| Metric | 90240 | Downey | Los Angeles-Long Beach-Anaheim, CA | California |
|---|---|---|---|---|
| Home Value | $943,645 | $898,734 | N/A | $761,003 |
| 5-Year CAGR | 4.0% | 4.3% | N/A | 5.7% |
| Avg Rent | $3,054 | $2,532 | N/A | - |
| Cap Rate | 2.5% | 2.2% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 90240 (Downey, CA). Anonymous, moderated, never written by AI.
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Property managers serving Los Angeles County
Manage rentals here? List your business →A Better Property Management Company Inc. provides property management services in Long Beach, Seal Beach, and Southern California. summary from their website
ACF Property Management leases shopping center spaces nationwide, managing over 37 shopping centers in 11 states from California to Florida. summary from their website
summary from their website summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $943,645 |
| Monthly Rent | $3,054 |
| Price-to-Rent | 25.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.5% |
| 5-Year IRR | 6.5% |
📈 Home Appreciation
| 1-Year | +3.8% ▲ |
| 3-Year CAGR | +3.8% ▲ |
| 5-Year CAGR | +4.0% ▲ |
| 10-Year CAGR | +5.9% ▲ |
🏠 Rent Trends
| 1-Year | +7.2% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.5%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 90240
Population: 25,326
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 90240
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Montebello Gardens Elementary
Gauldin (A.L.) Elementary
South Ranchito Dual Language Academy
Columbus (Christopher) High
Woodruff Academy
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 2,642 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the investability score for Downey, CA?
Yes - Downey, CA a 3.0/5 investability score. With $944K home prices against $3,054/mo monthly rent, the market delivers a reasonable entry point for new investors.
What are vacancy rates like in Downey, CA?
Downey, CA sees elevated vacancy, which is reasonable relative to the broader CA rental market.
What monthly rent should investors expect in Downey, CA?
Rental rates in Downey, CA average $3,054/mo. Tenant demand and $944K home values make the yield look reasonable by investor standards.
Are renters plentiful in Downey, CA?
Working renters make up the core of the Downey, CA tenant base. The pool is reasonable for investors targeting long-term holds.
Are homes affordable in Downey, CA?
Downey, CA median home values land near $944K. That is reasonable territory for investors looking at $3,054/mo-per-month rentals.
You know 90240 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 90240 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 90240 ranks in Los Angeles-Long Beach-Anaheim, CA
Every ZIP in this metro, ranked. Free.
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