Multifamily and Duplex Properties for Sale in Lemon Grove: Zoning and Rent Rules

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

Rental property in Lemon Grove is mostly duplexes and townhomes in the RM zone, plus garden apartments in the RMH and Residential/Professional (RP) zones. Rent increases fall under the state cap, but 2026 brought local just-cause rules. An urgency ordinance in February added relocation payments, and in July the council approved a permanent ordinance. Because those rules were still changing in fall 2026, check the current status with the city before you buy.

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What multifamily in Lemon Grove looks like

The city’s residential zones go from RL (10,000 sq ft lots) and RLM (6,000 sq ft small-lot single-family), to RM, which the code describes as duplexes and townhouses mixed with small homes, to RMH for compact multifamily such as garden apartments (LGMC § 17.16.010–.050). RP blends apartments with offices and medical uses, and some is near the downtown trolley station. The typical investment is a duplex, a small courtyard building or a 1960s–80s apartment complex. Duplexes through fourplexes can use 2-4 unit financing, and larger buildings need apartment building loans.

Where the zoning allows it

Zone	Duplex / multifamily	Density	Height
RM Residential Medium	Duplex by right; two detached homes on a 125 ft deep lot with 20 ft separation; multifamily by CUP	6,000 sq ft site + 3,000 sq ft per unit (about 14.5/acre)	25 ft
RMH Residential Medium/High	Duplexes and multifamily by CUP	6,000 sq ft + 1,500 sq ft per unit (about 29/acre), with a minimum of 1 per 3,000 sq ft	45 ft
RP Residential/Professional	Multifamily and senior housing by right (zoning clearance)	6,000 sq ft + 1,500 sq ft per unit; at least 2 units	45 ft; 500 sq ft open space per unit
RL / RLM	Single-family; ADUs permitted	10,000 / 6,000 sq ft lots	25 ft

Source: LGMC Ch. 17.16. The per-acre figures are my conversions of the code’s lot-area rules.

One quirk stands out. RMH, the denser zone, needs a CUP even for multifamily, while RP allows it by right. RMH and RP also set a minimum density, so a new project can’t underbuild the site. RP parcels inside Special Treatment Area I follow the Downtown Village Specific Plan, and in October 2026 the city was considering a new Downtown Specific Plan with zoning map changes (City notice).

ADUs and SB 9. ADUs are permitted accessory uses in the residential zones, and SB 9 applies on qualifying single-family lots in RL and RLM. See our SB 9 lot split guide and ADU investment guide.

Rent rules: state cap plus local just-cause rules

Rent increases. The Attorney General’s chart lists no local rent cap for Lemon Grove. The AB 1482 cap for the San Diego area is 8.8% for increases from August 2025 to July 2026, and 8.2% from August 1, 2026 to July 31, 2027 (AG rent caps). Units with a certificate of occupancy from the last 15 years, most single-family homes not owned by corporations, and owner-occupied duplexes are exempt (AG).

The February 2026 urgency ordinance. On February 3, 2026, the council adopted state just-cause law (Civil Code § 1946.2) with added local protections. For a no-fault termination, it required a payment of one month of HUD Small Area Fair Market Rent for the zip code plus one month of the tenant’s rent. Lower-income households, seniors 60 and older, disabled tenants and households with minor children got two months of fair market rent plus one month of rent. Tenants also got enhanced notice. The ordinance ran 180 days unless extended or replaced (City of Lemon Grove).

The permanent ordinance. On July 21, 2026, the council approved a permanent ordinance. It narrows the "substantial remodel" no-fault reason so cosmetic work such as paint or flooring doesn’t count, and it requires landlords to tell tenants about state and local protections at the start and end of each lease. KPBS reported that the second vote was set for August and the law would take effect September 20, 2026 if adopted (KPBS). Ask the city clerk for the adopted text, including whether it keeps the higher relocation payments. Our guides to AB 1482 and just cause eviction cover the state baseline.

Lemon Grove rental property rules

Business license for 3+ units. Owners of rental properties with three or more units must hold a Lemon Grove business license (City of Lemon Grove).
Home sharing. Renting your primary residence for 30 days or less requires a Home Sharing application along with in-city and home occupation applications.
Code enforcement. Housing complaints go to the city’s Code Enforcement Division.

Older buildings and redevelopment

Much of Lemon Grove’s apartment stock is older wood frame, often with carports or tuck-under parking. Look for soft-story risk (seismic retrofit guide). Buildings with three or more units and elevated balconies or walkways need SB 721 inspections (SB 721). Under the new ordinance’s narrower remodel definition, a renovation plan that depends on no-fault vacancies needs legal review before you price it in.

Underwriting a Lemon Grove multifamily purchase

Check the zone and STA, then test the unit count against 3,000 sq ft per unit (RM) or 1,500 sq ft per unit (RMH and RP) after the 6,000 sq ft base.
For RMH buildings, confirm the original CUP or other approval for the multifamily use.
Get the adopted text of the permanent tenant ordinance, and budget for relocation if you plan any no-fault move-outs.
Get estoppels and confirm each tenancy’s start date and protected status (estoppel certificates).
Budget for the business license on 3+ unit buildings, plus SB 721 and soft-story inspections.
Model rents with the 8.2% San Diego cap (rental property analysis).

Questions people ask

Does Lemon Grove have rent control?

It has no local cap on rent increases. AB 1482 applies. The city does have its own just-cause and tenant-notice rules from 2026.

What does a no-fault eviction cost in Lemon Grove?

Under the February 2026 urgency ordinance, it cost one month of HUD fair market rent plus one month of rent, or two months of fair market rent plus one month of rent for vulnerable households. Confirm the amount in the permanent ordinance with the city.

Can I build apartments in RMH by right?

No. Duplexes and multifamily both need a conditional use permit in RMH. In RP, multifamily is allowed by right.

Can I renovate and re-rent at a higher rent?

The permanent ordinance says cosmetic work doesn’t count as a substantial remodel. Get legal advice before counting on vacancies.

Do I need a business license for a triplex?

Yes. Owners of rentals with three or more units need a Lemon Grove business license.

Can I short-term rent a duplex unit?

The city’s home sharing program covers renting your own primary residence for 30 days or less. Check with the city before counting on short-term income for a non-owner unit.

Sources & notes

General information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

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