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

What multifamily in Olema looks like

Olema has very little housing, and almost none of it is apartments. Rentals are mostly cottages and second units on village lots, units above or behind commercial buildings, agricultural worker housing on nearby ranches, and a few parcels with several small dwellings. A 2003 county approval shows the pattern: four added habitable units, two with kitchens, on a 0.80-acre village parcel near Highway 1 and Sir Francis Drake that already had two. Small multi-unit parcels like that are what an Olema investor usually buys. Because the village is so small and surrounded by ranchland and federal parkland, properties rarely trade, and each one’s permit file matters more than any general rule. For financing, see financing 2-4 unit properties and apartment building loans.

Where the zoning allows it

Olema is unincorporated and in the Coastal Zone. Housing types come from Chapter 20.62 of the county’s coastal code, amended by Ordinance 3791 in 2023.

Uses not listed are not allowed. Nearly every project also needs a Coastal Development Permit under Chapter 20.68, and many can be appealed to the Coastal Commission.

Village core rule. The 2015 to 2016 LCP amendments mapped a proposed Village Commercial Core Area for Olema. The county’s Policy C-PK-3 FAQ explains that new homes in the core must be on upper floors or away from the road, to keep street frontage for commercial use. Existing legal homes can stay and be repaired.

ADUs and SB 9. ADUs are allowed in the coastal residential and village districts, subject to septic, water and coastal permit review. See our ADU investment guide. SB 9 applies only in single-family residential zones, and Coastal Act review still applies. Few Olema parcels are in a qualifying zone. See our SB 9 lot split guide. The county’s 2025 LCP housing amendments would update multi-unit and ADU rules in Olema and other coastal villages once approved.

Rent rules: state law plus Marin County’s just cause and mediation

Rent caps. There is no local cap. AB 1482 applies to covered units, and the Attorney General’s chart sets the San Francisco Area maximum at 8.8% from August 1, 2026 through July 31, 2027. See our AB 1482 guide.

County just cause. The county’s just cause ordinance, Chapter 5.100, adopted in December 2018, covers lots with three or more dwelling units in unincorporated areas such as Olema. Permitted ADUs and JADUs do not count toward the three, but unpermitted units do. So a village parcel with three or more legal or unpermitted dwellings is likely covered. Before any termination, a landlord needs a county rental business license, a tenant-rights notice and Rental Registry registration. A copy of the termination notice must go to the county within 10 days. See our just cause eviction guide.

Mediation. Increases above 5% in 12 months can go to free mediation under the county’s mandatory mediation program, codified in Chapter 5.95.

Olema rental property rules

• Short-term rentals. Olema’s STR township cap under Chapter 5.41 is 3 licenses, both initially and over time. Multifamily units, newer ADUs and agricultural worker units are ineligible, so underwrite every unit as a long-term rental.
• Multi-unit inspections. County Environmental Health inspects rentals of three or more units outside San Rafael and Novato. Ask whether an annual permit applies.
• Business license. Each rental unit needs a county business license.
• Transfer tax. Only the county’s $0.55 per $500 applies, per the Recorder.

Septic, Olema Creek and federal neighbors

Village properties generally rely on septic systems and small water supplies, and each added bedroom has to fit within that capacity. Olema Creek and its wetlands run through the village. In 2007 the state required corrective work at the Olema RV Resort after unpermitted creek diversion and wetland fill, so expect strict review of any work near the water. The LUP maps an Olema historic area (Map 23c), which can affect exterior changes to older buildings. Older wood-frame cottages may need a seismic retrofit review. Buildings with three or more units and elevated decks need SB 721 inspections.

Underwriting an Olema multifamily purchase

1. Confirm the coastal district, the core boundary and the coastal permit history for every unit.
2. Count dwellings the way the county does to see whether just cause applies.
3. Get septic inspection records and a water-supply review for current and planned units.
4. Model increases at or below 8.8% and assume no STR income.
5. Collect leases, the rent roll and estoppel certificates, and check for agricultural worker restrictions.
6. Rebuild expenses with reassessed taxes, the county license, septic upkeep and insurance in our rental property analysis.

Questions people ask

Sources & notes

1. Marin County Code Chapter 20.62, Coastal Zoning Districts (GoCodebook, October 2026)
2. 2015-2016 LUP amendments and Policy C-PK-3 FAQ
3. Marin County, Just Cause Eviction and Mandatory Mediation
4. Marin County Code Chapter 5.41, Short Term Rentals
5. CEQAnet: Emery Coastal Permit (2003) and Olema RV Resort Remediation (2007)
6. Marin County, West Marin LCP housing updates (2025)
7. California Attorney General, Rent Caps

Note: We could not open the LUP’s Olema policy text or maps, or identify Olema’s water and wastewater providers. Confirm the core boundary and septic records with the county.

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

Related: Olema real estate guide · Commercial real estate in Olema · Multifamily investing guide · Investor services