Real Estate Investing in Downey, California (90242)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 90242 (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 30.3 — hard to cash-flow at these prices.
What’s happening in Downey, CA (90242)?
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Market Analysis: 90242 Downey
Not every below-median market is a bargain. Downey's 90242 ZIP reflects signals that favor experienced operators who can absorb the risk $823K pricing implies.
The investment case in 90242 is resilient only for operators who understand what they are buying. A $823K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
The gap between 90242 and stronger Downey ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Who lives in 90242 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
New investors are better served looking at Downey's stable or hybrid ZIPs before stepping into 90242. 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 90242
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $513,216 | $2,000 | 2.8% | +7.1% | $513,216 |
| 2BR | $703,953 | $2,490 | 2.5% | +6.4% | $351,977 |
| 3BR | $803,509 | $3,160 | 2.8% | +5.9% | $267,836 |
| 4BR | $888,013 | $3,520 | 2.9% | +5.9% | $222,003 |
| 5BR | $1,064,988 | — | — | +6.6% | $212,998 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 90242 Compare?
| Metric | 90242 | Downey | Los Angeles-Long Beach-Anaheim, CA | California |
|---|---|---|---|---|
| Home Value | $822,790 | $898,734 | N/A | $761,003 |
| 5-Year CAGR | 4.3% | 4.3% | N/A | 5.7% |
| Avg Rent | $2,264 | $2,532 | N/A | - |
| Cap Rate | 2.2% | 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 90242 (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 | $822,790 |
| Monthly Rent | $2,264 |
| Price-to-Rent | 30.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.3% |
| Cap Rate | 2.2% |
| 5-Year IRR | 6.5% |
📈 Home Appreciation
| 1-Year | +3.8% ▲ |
| 3-Year CAGR | +3.9% ▲ |
| 5-Year CAGR | +4.3% ▲ |
| 10-Year CAGR | +6.5% ▲ |
🏠 Rent Trends
| 1-Year | +1.2% ▲ |
| 3-Year CAGR | +2.3% ▲ |
| 5-Year CAGR | +4.0% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.2%). 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 90242
Population: 40,983
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 90242
Schools in This ZIP Code
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
How do experienced investors play Downey, CA?
The best-fit strategy in Downey, CA is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
What is the tenant pool like in Downey, CA?
Expect a solid tenant pool in Downey, CA. The rental market absorbs $2,264/mo rents without meaningful friction.
Is Downey in CA worth investing in?
Our data puts Downey, CA at 3.0/5 for investability. Home prices of $823K and rents around $2,264/mo create a solid backdrop for investor activity.
What is the median home value in Downey, CA?
Typical homes in Downey, CA go for around $823K. The 5-year CAGR of 0.0% even-keeled price movement.
Should investors worry about vacancy in Downey, CA?
Vacancy in Downey, CA is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $2,264/mo.
You know 90242 now. You don’t know where it ranks.
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How 90242 ranks in Los Angeles-Long Beach-Anaheim, CA
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