Real Estate Investing in Santa Monica, California (90405)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 90405 (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: 11.3% vacancy may signal weakening demand.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 50.4 — hard to cash-flow at these prices.
What’s happening in Santa Monica, CA (90405)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 90405 Santa Monica
ZIP 90405 in Santa Monica, CA carries a healthy set of headwinds. Home values near $1.9M and rents of $3,200/mo sit inside a market where underwriting has to be tight.
Distressed markets are won on execution, not on spreadsheets. ZIP 90405 clocks in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Stepping back, 90405 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.
The demographic picture in 90405 includes headwinds that any investor should price in. Income distribution skews lower than Santa Monica averages, and tenant stability requires active management.
The right play in 90405 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 90405
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $685,049 | $2,550 | 2.7% | -2.0% | $685,049 |
| 2BR | $1,462,727 | $3,180 | 1.6% | +2.4% | $731,363 |
| 3BR | $2,247,271 | $4,030 | 1.3% | +3.4% | $749,090 |
| 4BR | $2,838,370 | $4,490 | 1.1% | +3.4% | $709,593 |
| 5BR | $3,377,538 | — | — | +3.6% | $675,508 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 90405 Compare?
| Metric | 90405 | Santa Monica | Los Angeles-Long Beach-Anaheim, CA | California |
|---|---|---|---|---|
| Home Value | $1,934,558 | $2,108,588 | N/A | $761,003 |
| 5-Year CAGR | 2.3% | 0.9% | N/A | 5.7% |
| Avg Rent | $3,200 | $4,049 | N/A | - |
| Cap Rate | 1.3% | 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 90405 (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 | $1,934,558 |
| Monthly Rent | $3,200 |
| Price-to-Rent | 50.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.0% |
| Cap Rate | 1.3% |
| 5-Year IRR | 3.6% |
📈 Home Appreciation
| 1-Year | +6.4% ▲ |
| 3-Year CAGR | +2.3% ▲ |
| 5-Year CAGR | +2.3% ▲ |
| 10-Year CAGR | +5.5% ▲ |
🏠 Rent Trends
| 1-Year | -1.8% ▼ |
| 3-Year CAGR | +1.0% ▲ |
| 5-Year CAGR | +3.1% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (1.3%). 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 90405
Population: 26,809
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 90405
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
Walgrove Avenue Elementary
Broadway Elementary
Daniel Webster Middle
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
Should investors consider Santa Monica, CA?
Santa Monica, CA scores 2.0/5 for investability. Home values sit at $1.9M and rents near $3,200/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
How expensive is real estate in Santa Monica, CA?
Santa Monica, CA median home values land near $1.9M. That is reasonable territory for investors looking at $3,200/mo-per-month rentals.
Are rents high in Santa Monica, CA?
Rent in Santa Monica, CA is around $3,200/mo. The resulting rent-to-value relationship with $1.9M pricing is reasonable for most investor models.
How tight is the rental market in Santa Monica, CA?
Expect elevated vacancy in Santa Monica, CA. Rents at $3,200/mo are absorbed by the tenant base without meaningful lag.
What is the smart move for investors in 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.
You know 90405 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 90405 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 90405 ranks in Los Angeles-Long Beach-Anaheim, CA
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