Multifamily and Duplex Properties for Sale in Redwood City: Zoning and Rent Rules

What multifamily in Redwood City looks like

Redwood City’s rental stock mixes older duplexes and small apartment buildings in the R-2 and R-3 neighborhoods, larger mid-century and newer complexes in R-4 and R-5, and the mid-rise and high-rise apartments that have gone up downtown and along El Camino Real and Veterans Boulevard. Redwood Shores adds bayfront apartments and condominiums. What sets the city apart for investors is its own Tenant Protection Ordinance, in force since January 1, 2026, which replaces state just-cause rules for covered units. For two to four units, read financing 2-4 unit properties; for larger buildings, see apartment building loans.

Where the zoning allows it

Article 4 of the Zoning Code, last amended July 27, 2026, sets which residential districts allow which housing types.

R-5 detail. Article 10 describes R-5 as the district for medium to large residential projects, from bungalow courts and townhomes to high-density apartments. Height is 75 feet for apartments, rising to 100 feet on lots at least 100 feet wide and 20,000 square feet, with no maximum on lots at least 150 feet wide and 40,000 square feet. Minimum lots are 5,000 square feet and at least 20% of each lot must stay pervious.

Freeway buffer. On the corridors, new homes within 500 feet of a freeway’s outer lane need a use permit with air quality findings, which affects sites near Highway 101.

ADUs and SB 9. Article 4 lists ADUs as an accessory use with dwellings in residential districts under state ADU law, and permits SB 9 projects in RH and R-1. See our ADU investment guide and SB 9 lot split guide.

Rent rules: state rent cap plus a local tenant protection ordinance

Rent cap. The Attorney General’s rent cap page, updated July 16, 2026, places San Mateo County in the San Francisco Area, with covered units allowed up to 8.8% for increases from August 1, 2026 through July 31, 2027. It lists East Palo Alto as the only city in the county with local rent stabilization, so Redwood City has no local rent cap.

Tenant Protection Ordinance. Chapter 42, adopted by Ordinance 2554 on November 10, 2025, replaced the city’s 2018 relocation ordinance, and for covered units Civil Code Section 1946.2 no longer applies.

• One-year leases. Landlords must offer prospective tenants a written one-year lease with a bilingual English and Spanish notice; a tenant may decline in writing within 15 days, and rent is fixed for the initial term.
• Just cause. After 12 months of lawful occupancy, termination requires an at-fault or no-fault reason listed in the chapter, with a cure notice first for curable breaches.
• Right to return. After a substantial remodel, the former tenant must be offered the unit within 10 days of completion.
• Relocation. Every no-fault termination owes one month’s rent, paid within 15 days, or a waiver of the final month. Households at or below 80% of County median income get more: a deposit refund, a 60-day rental agency subscription and up to three months of HUD Fair Market Rent. Seniors, disabled tenants, families with minor children and five-year residents are capped at four months.
• Notice to the City. A copy of any no-fault notice goes to the City within three days.
• Exemptions. Exemptions include units with a certificate of occupancy from the past 15 years, owner-occupied duplexes, rooms in an owner’s home, and individually owned homes not held by corporations or REITs.

See our AB 1482 guide and just cause eviction guide.

Redwood City rental property rules

• Short-term rentals. Under Section 31.3, only a host’s principal residence can be rented short term, each unit counts as its own residence, and ADUs do not qualify unless registered before January 1, 2020. Unhosted stays are capped at 120 days a year, events are barred, and fines reach $1,000 a day for tax and reporting failures.
• SROs. Single room occupancy units must be rented for more than 30 days, cannot be sold, and a building of 16 or more units needs a manager’s unit.
• Live/work. Live/work units cannot be rented separately as homes or commercial space.
• Transfer tax. The County’s documentary transfer tax is $0.55 per $500. Redwood City’s Article III sets $0.275 per $500 under the state enabling law, which typically shares the County rate; confirm in escrow.

Bayfront, older buildings and seismic

Redwood Shores and other bayside areas are low-lying, and the city has both a Tidal Plain zoning district and a separate floodplain management chapter (Chapter 41), so check flood zone status and insurance on any bayside building. The city’s older wood-frame apartments, often with tuck-under parking, merit a seismic retrofit review. Buildings of three or more units with elevated balconies need SB 721 balcony inspections.

Underwriting a Redwood City multifamily purchase

1. Classify each unit under Chapter 42 and AB 1482; note any 15-year new-construction exemption.
2. Model rent increases at or below 8.8% for capped units, and confirm one-year lease offers were made.
3. If you plan a remodel or owner move-in, budget relocation of one to four months and the right to return.
4. Confirm the district; on corridors near Highway 101, check the 500-foot freeway buffer before adding units.
5. Collect leases, the rent roll and estoppel certificates.
6. Rebuild expenses with reassessed taxes, SB 721, flood and seismic costs in our rental property analysis.

Questions people ask

Sources & notes

1. Redwood City Zoning Code, Article 4 residential uses (GoCodebook)
2. Article 10, R-5 Multi-Family High Density
3. Article 53, Mixed-Use Corridor districts
4. Article 31, Special Uses
5. Chapter 42, Tenant Protection
6. Chapter 32, Article III, Documentary Transfer Tax
7. San Mateo County Clerk-Recorder, documentary transfer tax
8. California Attorney General, rent caps

Note: We did not review the R-2, R-3 and R-4 articles, General Plan densities, Section 5.10 (SB 9), the affordable housing article or the floodplain chapter. Relocation regulations and fees adopted by resolution were not reviewed.

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

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