Real Estate Investing in Santa Monica, California (90404)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 90404 (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.
- Elevated vacancy: 8.3% vacancy may signal weakening demand.
- Flat appreciation: Values have barely moved over 5 years (0.3% CAGR).
- 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 Santa Monica, CA (90404)?
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Market Analysis: 90404 Santa Monica
The 90404 ZIP in Santa Monica, CA is a local-operator market. Outside capital chasing a $1.0M entry has to pair deep knowledge with the discount.
From an investor standpoint, the numbers look inviting — $1.0M purchase price, 0.0% nominal cap — the work to hit that pro forma in 90404 is substantial and deserves full respect.
Nearby ZIPs in Santa Monica have seen price recovery that 90404 has not matched. Los Angeles County data supports the view that the spread is structural rather than temporary.
Resident income in 90404 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Experienced landlords with local relationships tend to find 90404 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Santa Monica:
Property Strategy for 90404
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $629,435 | $2,390 | 2.7% | -1.8% | $629,435 |
| 2BR | $1,004,498 | $2,980 | 2.1% | +0.8% | $502,249 |
| 3BR | $1,299,173 | $3,780 | 2.1% | +2.5% | $433,058 |
| 4BR | $1,701,644 | $4,210 | 1.8% | +2.3% | $425,411 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 90404 Compare?
| Metric | 90404 | Santa Monica | Los Angeles-Long Beach-Anaheim, CA | California |
|---|---|---|---|---|
| Home Value | $1,048,458 | $2,108,588 | N/A | $761,003 |
| 5-Year CAGR | 0.3% | 0.9% | N/A | 5.7% |
| Avg Rent | $3,383 | $4,049 | N/A | - |
| Cap Rate | 2.5% | 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 90404 (Santa Monica, 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 | $1,048,458 |
| Monthly Rent | $3,383 |
| Price-to-Rent | 25.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.5% |
| 5-Year IRR | 2.8% |
📈 Home Appreciation
| 1-Year | -1.5% ▼ |
| 3-Year CAGR | -0.1% ▼ |
| 5-Year CAGR | +0.3% ▲ |
| 10-Year CAGR | +3.4% ▲ |
🏠 Rent Trends
| 1-Year | -0.4% ▼ |
| 3-Year CAGR | +0.9% ▲ |
| 5-Year CAGR | +2.8% ▲ |
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 90404
Population: 22,881
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 90404
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Marina del Rey Middle
James J. McBride Special Education Center
John Adams Middle
Walgrove Avenue Elementary
Broadway 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 is the typical rental rate in Santa Monica, CA?
Average rent in Santa Monica, CA is approximately $3,383/mo per month. Against $1.0M home values that yields a reasonable rent-to-price ratio.
Is Santa Monica, CA better for rentals, flips, or BRRRR?
Most investors in Santa Monica, CA run a careful cash-flow rentals with hands-on management strategy. It aligns with the 2.0/5 investability profile and the market fundamentals.
What is the typical home price in Santa Monica, CA?
Typical homes in Santa Monica, CA go for around $1.0M. The 5-year CAGR of 0.0% consistent price movement.
Is rental property easy to operate in Santa Monica, CA?
Santa Monica, CA operates under CA law, which is tenant-protective overall for landlords. Expect reliable treatment in typical lease and eviction cases.
Is Santa Monica, CA suited for a house hack?
The house hack math a tougher in Santa Monica, CA. Owner-occupant buyers benefit from the $3,383/mo rents and $1.0M home values.
You know 90404 now. You don’t know where it ranks.
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How 90404 ranks in Los Angeles-Long Beach-Anaheim, CA
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