Real Estate Investing in Santa Monica, California (90401)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 90401 (Santa Monica, CA)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 15.1% of homes vacant — above national norms.
- Declining values: -2.1% 5-year CAGR — values have moved lower.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- Higher unemployment: 7.6% unemployment — tenant risk signal.
What’s happening in Santa Monica, CA (90401)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 90401 Santa Monica
Investors eyeing 90401 need to respect the fundamentals at play. Home values of $1.3M come alongside slower price movement and elevated management overhead.
For an experienced owner, 90401 can be a a viable market for hunting ground — but the discount at $1.3M reflects genuine risk that outside investors often underestimate.
On balance, 90401 offers a low basis, the region around Santa Monica has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Demographically, 90401 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.
The right play in 90401 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Santa Monica:
Property Strategy for 90401
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $805,711 | $2,980 | 2.7% | -3.2% | $805,711 |
| 2BR | $1,197,120 | $3,720 | 2.2% | -0.6% | $598,560 |
| 3BR | $1,945,300 | $4,720 | 1.7% | -0.2% | $648,433 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 90401 Compare?
| Metric | 90401 | Santa Monica | Los Angeles-Long Beach-Anaheim, CA | California |
|---|---|---|---|---|
| Home Value | $1,279,812 | $2,108,588 | N/A | $761,003 |
| 5-Year CAGR | N/A | 0.9% | N/A | 5.7% |
| Avg Rent | $3,765 | $4,049 | N/A | - |
| Cap Rate | 2.3% | 1.8% | - | - |
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 90401 (Santa Monica, CA). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 90401 (Santa Monica, CA)?
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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 | $1,279,812 |
| Monthly Rent | $3,765 |
| Price-to-Rent | 28.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.5% |
| Cap Rate | 2.3% |
| 5-Year IRR | 0.2% |
📈 Home Appreciation
| 1-Year | +0.1% ▲ |
| 3-Year CAGR | -1.9% ▼ |
| 5-Year CAGR | -2.1% ▼ |
| 10-Year CAGR | +1.7% ▲ |
🏠 Rent Trends
| 1-Year | +16.3% ▲ |
| 3-Year CAGR | +5.6% ▲ |
| 5-Year CAGR | +5.0% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.3%). 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 90401
Population: 7,925
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 90401
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
John Adams Middle
Broadway Elementary
Edison Elementary
Franklin Elementary
Grant Elementary
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 9,227 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What are rental rates like in Santa Monica, CA?
Average rent in Santa Monica, CA is approximately $3,765/mo per month. Against $1.3M home values that yields a reasonable rent-to-price ratio.
Do landlords face vacancy issues in Santa Monica, CA?
Expect elevated vacancy in Santa Monica, CA. Rents at $3,765/mo are absorbed by the tenant base without meaningful lag.
What real estate strategy is ideal for Santa Monica, CA?
For Santa Monica, CA, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
Is CA a landlord-friendly state?
The landlord environment in Santa Monica, CA is tenant-protective. Statewide rules shape most day-to-day operations for rental owners.
What are home prices like in Santa Monica, CA?
The median home value in Santa Monica, CA is roughly $1.3M. That puts it reasonable relative to the CA statewide average.
You know 90401 now. You don’t know where it ranks.
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How 90401 ranks in Los Angeles-Long Beach-Anaheim, CA
Every ZIP in this metro, ranked. Free.
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