Multifamily and Duplex Properties for Sale in Novato: Zoning and Rent Rules

What multifamily in Novato looks like

Novato has a wide range of rental housing. It includes duplexes and small multiplexes in older neighborhoods near downtown, garden apartment complexes from the 1970s and 1980s along Highway 101 and Novato Boulevard, and newer apartments and townhomes at Hamilton. The city also has several mobilehome parks under a long-standing space rent ordinance. In 2026 Novato adopted its own tenant protection ordinance, which now shapes underwriting as much as zoning does. For financing, see financing 2-4 unit properties and apartment building loans.

Where the zoning allows it

Division 19.10, last amended by Ordinance 1725 in July 2025, sets density ranges and housing types.

District	Density	Two-family	Multifamily	Height
RR, RVL Rural and Very Low	Up to 1 unit/acre	Not allowed	Not allowed	30 ft
R1 Low Density	1.1 to 5 units/acre	Not allowed	Not allowed	30 ft
R4 Medium Density Detached	4.1 to 7 units/acre	Permitted	Not allowed	30 ft
R5 Medium Density	5.1 to 10 units/acre	Permitted	Not allowed	30 ft
R10 Medium Density Multi-Family	10.1 to 20 units/acre	Permitted	Permitted	35 ft
R20 High Density Multi-Family	20.1 to 30 units/acre	Permitted	Permitted	35 ft
CN, CDR, CDB commercial	Per FAR	—	Mixed-use multifamily by use permit	35 to 45 ft
AHO overlay	20 to 23 units/acre with 20% affordable	—	Permitted on qualifying projects	35 ft

Mobilehome parks need a use permit in every residential district. Multifamily projects must meet the standards in Section 19.34.124. Downtown, the Specific Plan overlay bars multifamily on First Street.

ADUs and SB 9. ADUs and JADUs are permitted in all residential districts under Sections 19.34.030 and 19.34.031. See our ADU investment guide. Novato’s table permits SB 9 units in RR, RVL, R1 and R4 under Section 19.34.029. Duplex-zoned R5 lots and the multifamily districts are outside it. See our SB 9 lot split guide.

Rent rules: AB 1482 cap plus Novato’s Tenant Protections Ordinance

Rent caps. Novato has no local cap on apartment rents, so AB 1482’s cap governs covered units. The Attorney General’s rent cap page puts Marin in the San Francisco Area, with a maximum of 8.8% for increases from August 1, 2026 through July 31, 2027. See our AB 1482 guide.

Tenant Protections Ordinance. According to the city’s ordinance page, Ordinance 1731 added Section 4-17 to the municipal code. It was adopted April 28, 2026 and took effect May 28, 2026. It replaces the state’s just cause rules within city limits and reaches further than AB 1482. It covers most multifamily rentals, including units under 15 years old, deed-restricted affordable units and unpermitted units. The exemptions are narrow: single-family homes, condos and mobile homes owned by individuals rather than corporations or REITs, owner-occupied homes renting no more than two rooms, and ADUs or JADUs attached to an owner-occupied home. See our just cause eviction guide.

Relocation and right of return. The city’s state-versus-Novato comparison shows relocation of one to two months of HUD Fair Market Rent for no-fault terminations, plus moving costs and temporary relocation for renovations and red-tag orders. A right of return must be offered to every tenant in a no-fault eviction.

Notices. Landlords must give a written Notice of Tenant Rights in English and Spanish at lease signing and renewal, with any rent increase or change in terms, when listing the property for sale, and within 30 days of buying it. A missing notice invalidates rent changes and termination notices. A copy of each termination notice must be emailed to city code enforcement within 10 days.

Novato rental property rules

Mobilehome space rent. Chapter XX, last amended by Ordinance 1716 in July 2024, sets one increase each January 1. Since 2004 it has been 100% of the Bay Area CPI change, capped at 4%, and rents must fall if CPI falls. Base rents date to January 1, 1996. Spaces first rented after January 1, 1990 are exempt. Rent resets only on a lawful vacancy. Park owners must stay current on registration and fees to raise rents.
Hotel tax. Stays subject to the city’s 12% hotel room tax include short stays in rental units.
Transfer tax. Only the county’s $0.55 per $500 applies. The Recorder lists no Novato city tax.

Baylands, flood zones and older buildings

Eastern Novato and parts of Hamilton sit on former marsh. Parcels in the Flood Hazard and Baylands overlays face hydraulic studies, tidal buffers and limits on new fill, which affects both additions and insurance. Many 1970s apartment complexes have wood-frame construction with tuck-under parking, so request a seismic retrofit review. Buildings with three or more units and elevated decks need SB 721 inspections. Under the Tenant Protections Ordinance, a renovation that requires tenants to leave now brings temporary relocation and right-of-return obligations. Factor that in before planning a value-add rehab.

Underwriting a Novato multifamily purchase

Confirm the zoning district and overlays, and calculate legal unit count from the density range.
Check whether the property falls under Section 4-17. Most multifamily does, including newer and unpermitted units.
Ask for proof that the seller served the Notice of Tenant Rights, and plan to serve your own within 30 days of closing.
Model increases at or below the 8.8% AB 1482 cap. For a mobilehome park, use the CPI-based space rent rule, capped at 4%.
Price any planned rehab with relocation of one to two months of Fair Market Rent and the right of return.
Collect leases, the rent roll and estoppel certificates, then rebuild expenses with reassessed taxes in our rental property analysis.

Questions people ask

Does Novato have rent control?

Not for apartments. AB 1482’s cap applies to covered units. Mobilehome spaces have a local cap of 100% of CPI, up to 4% a year.

When did Novato’s tenant protection ordinance take effect?

May 28, 2026, after adoption on April 28, 2026, as Section 4-17 of the municipal code.

Does it cover a newer apartment building?

Yes. Unlike AB 1482, Novato’s ordinance covers units newer than 15 years, as well as deed-restricted and unpermitted units.

Is a single-family rental covered?

It is exempt if owned by an individual rather than a corporation or REIT.

Where can I build apartments?

Multifamily is permitted in R10 and R20, and allowed in mixed-use projects in the commercial districts by use permit. Duplexes are permitted in R4 and R5.

Does SB 9 apply to duplex-zoned lots?

Novato’s table allows SB 9 units in RR, RVL, R1 and R4. Other districts are outside it.

Is there a city transfer tax?

No. Only the county’s $0.55 per $500 applies.

Sources & notes

Note: We read the city’s summary pages, not the full text of Section 4-17. Relocation amounts by reason, penalties and any registration duty should be confirmed in the ordinance. We did not review Sections 19.34.029 to 19.34.124 or local rules for short-term rentals.

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

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