Real Estate Investing in Davis, California (95616)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 95616 (Davis, 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.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 26.5 — hard to cash-flow at these prices.
What’s happening in Davis, CA (95616)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 95616 Davis
The 95616 ZIP in Davis, CA is a local-operator market. Outside capital chasing a $848K entry has to pair deep knowledge with the discount.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $848K asset, 95616 is the wrong submarket. If the plan prices in friction, the yield can still work.
Nearby ZIPs in Davis have seen price recovery that 95616 has not matched. Yolo County data supports the view that the spread is structural rather than temporary.
A solid renter share of 65% in 95616 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategy in 95616 is an operator game, not a passive one. On the rental side, entry prices of $848K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Davis:
Property Strategy for 95616
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $481,926 | $1,930 | 2.9% | +3.7% | $481,926 |
| 2BR | $568,208 | $2,510 | 3.2% | +3.2% | $284,104 |
| 3BR | $763,311 | $3,480 | 3.3% | +3.8% | $254,437 |
| 4BR | $993,537 | $3,790 | 2.7% | +4.2% | $248,384 |
| 5BR | $1,178,297 | — | — | +4.3% | $235,659 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 95616 Compare?
| Metric | 95616 | Davis | Sacramento-Roseville-Folsom, CA | California |
|---|---|---|---|---|
| Home Value | $847,606 | $839,355 | N/A | $761,003 |
| 5-Year CAGR | 1.8% | 1.8% | N/A | 5.7% |
| Avg Rent | $2,666 | $2,691 | N/A | - |
| Cap Rate | 2.5% | 2.5% | - | - |
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 95616 (Davis, CA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $847,606 |
| Monthly Rent | $2,666 |
| Price-to-Rent | 26.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.8% |
| Cap Rate | 2.5% |
| 5-Year IRR | 4.2% |
📈 Home Appreciation
| 1-Year | -0.9% ▼ |
| 3-Year CAGR | +0.3% ▲ |
| 5-Year CAGR | +1.8% ▲ |
| 10-Year CAGR | +4.0% ▲ |
🏠 Rent Trends
| 1-Year | +12.6% ▲ |
| 3-Year CAGR | +5.0% ▲ |
| 5-Year CAGR | +5.8% ▲ |
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 95616
Population: 51,863
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 95616
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 2,912 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Where do rents currently stand in Davis, CA?
Rents in Davis, CA run near $2,666/mo. Compared with median home prices of $848K that produces solid gross yields for typical rentals.
What is the typical home price in Davis, CA?
Davis, CA home values average about $848K. That price point suits investors targeting rentals with $2,666/mo in monthly income.
Is vacancy a concern in Davis, CA?
Davis, CA sees elevated vacancy, which is reasonable relative to the broader CA rental market.
Can I house hack in Davis, CA?
The a challenging house-hack environment in Davis, CA reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
Is real estate in Davis, CA a good investment right now?
Yes - Davis, CA a 2.0/5 investability score. With $848K home prices against $2,666/mo monthly rent, the market delivers a reasonable entry point for new investors.
You know 95616 now. You don’t know where it ranks.
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How 95616 ranks in Sacramento-Roseville-Folsom, CA
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