Multifamily and Duplex Properties for Sale in San Diego: Zoning and Rent Rules

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

In the City of San Diego, the main multifamily zones are the RM zones, which range from about one unit per 3,000 sq ft to one per 200 sq ft, plus commercial zones that allow housing. Rent increases follow the state AB 1482 cap. But since June 2023 the City’s Residential Tenant Protections ordinance has required just cause from the start of a tenancy and two or three months’ rent in relocation for no-fault evictions, which is stricter than state law.

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What multifamily in San Diego looks like

Across the city’s community plan areas, rental stock ranges from older duplexes and courtyard buildings in established neighborhoods, to garden-style complexes, to newer mid- and high-rise buildings downtown and along transit corridors. The Land Development Code’s RM zones step from RM-1 (lower density with some single-unit characteristics) to RM-4 (urban high density), and RM-5-12 serves visitor accommodations or medium-density housing (SDMC § 131.0406). For 2-4 unit financing, see our guide. For 5+ units, see apartment building loans.

Where the zoning allows it

Zone	Lot area per unit (max density)	Character
RM-1-1 / 1-2 / 1-3	3,000 / 2,500 / 2,000 sq ft	Lower density, some single-unit characteristics
RM-2-4 / 2-5 / 2-6	1,750 / 1,500 / 1,250 sq ft	Medium density
RM-3-7 / 3-8 / 3-9	1,000 / 800 / 600 sq ft	Medium density with limited commercial
RM-4-10 / 4-11	400 / 200 sq ft	Urbanized high density
RM-5-12	1,000 sq ft	Visitor accommodations or medium density
CN-1-1 to CN-1-6	3,000 down to 600 sq ft	Neighborhood commercial with housing
CC-3-6 to CC-3-11	1,000 down to 150 sq ft	Community commercial mixed use
RS / RX / RT	Single units, small lots, townhouses	Multiple units not permitted in RS; ADUs allowed

Sources: SDMC Div. 4 residential, Div. 5 commercial.

Housing in commercial zones has to come with commercial space on the site, and the zone’s own height and FAR limits apply. In La Jolla, Pacific Beach and Torrey Pines, RM-5-12 allows one unit or two guest rooms per 1,500 sq ft. In RS zones, multiple dwelling units aren’t permitted, and SB 9 two-unit projects and lot splits follow Chapter 14, Article 3, Division 13 (SDMC § 131.0420).

ADU density bonus. San Diego’s ADU Home Density Bonus program lets owners add bonus ADUs in exchange for affordable ADUs. In June 2025 the Council reformed it. It’s now barred in the lowest-density RS zones except in high-resource areas, bonus ADUs outside Transit Priority Areas need one parking space each, and lots in high or very high fire zones need two evacuation routes. Coastal Zone changes await Coastal Commission certification (City of San Diego). See our ADU guide and SB 9 guide.

Rent rules: state rent cap plus local tenant protections

Rent increases. No local rent cap applies. AB 1482 limits San Diego-area increases to 8.2% from August 1, 2026 to July 31, 2027 (AG rent caps).

Residential Tenant Protections (SDMC §§ 98.0701–98.0710). Ordinance O-21647 took effect June 24, 2023, and was amended effective March 28, 2024 (SDMC Ch. 9, Art. 8, Div. 7). Its main provisions:

Coverage. Just cause applies to any tenancy longer than 30 days, not just after 12 months as under state law. Exemptions include buildings with a certificate of occupancy within 15 years, owner-occupied duplexes, and single-family homes and condos not owned by a REIT or corporation (with written notice).
Relocation. For any no-fault termination, regardless of income or tenancy length, the landlord pays two months’ rent, or three months for tenants 62 and older or disabled. The landlord can instead waive the same amount of rent.
Substantial remodel. The work must need a permit, must be unsafe to do with the tenant in place, and must require the tenant to leave for at least 30 days. Cosmetic work doesn’t count.
Buyouts. A buyout needs a written disclosure first, and it’s void if it pays less than the required relocation.
Termination notice registry. Landlords will have to notify the Housing Commission within three business days of serving a termination notice, starting 30 days after the Commission opens its portal (SDHC).
Remedies. Wrongful eviction carries at least three times actual damages, and any noncompliance voids the notice.

Read our AB 1482 and just cause guides with these local rules in mind.

San Diego rental property rules

Rental Unit Business Tax. Anyone who owns, operates or manages residential rental property in the city owes this annual tax, generally by March 1. That includes houses, apartments and mobile home parks (City Treasurer).
Short-term rentals. Whole-home STRs need a Tier 3 license (capped at 1% of housing units outside Mission Beach) or a Tier 4 license (capped at 30% of Mission Beach). As of October 23, 2026, 807 Tier 3 licenses remained and Tier 4 was full (City Treasurer).
Source of income. Landlords can’t refuse or end a tenancy because a tenant uses rental assistance (SDHC).

Coastal height, older buildings and inspections

West of I-5, the 1972 voter-approved 30 ft Coastal Height Limit caps redevelopment, with mapped exclusions (City ballot analysis). For older wood-frame buildings with tuck-under parking, evaluate soft-story risk (seismic retrofit). Buildings with three or more units and elevated balconies need SB 721 inspections (SB 721).

Underwriting a San Diego multifamily purchase

Pull the zone, community plan and overlays, then check the unit count against the zone’s lot area per unit.
Confirm whether the building falls under AB 1482 and the City ordinance (certificate of occupancy over 15 years old, ownership type).
Budget two to three months’ rent per unit for any planned no-fault move-out, and confirm the notice and registry rules.
Confirm Rental Unit Business Tax payments are current, and check any STR license (it doesn’t carry over automatically).
Get estoppels (estoppel certificates) and inspect balconies and soft-story conditions.
Model rents at the 8.2% cap (rental property analysis).

Questions people ask

Does San Diego have rent control?

No local rent cap. AB 1482 applies. The City does require just cause and higher relocation payments under SDMC §§ 98.0701–98.0710.

How much relocation do I owe for an owner move-in?

Two months’ actual rent, or three months if the tenant is 62 or older or disabled. You can pay it directly or waive the same amount of rent.

Does the City ordinance apply in a tenant’s first year?

Yes. It covers tenancies longer than 30 days, unlike state law’s 12-month threshold.

Do I pay a City tax on rental units?

Yes. The Rental Unit Business Tax applies to residential rental property and is generally due March 1.

What is the densest residential zone?

RM-4-11, at one unit per 200 sq ft of lot area. Some CC-3 zones go to one per 150 sq ft as mixed use.

Can I add a duplex unit in an RS zone?

Multiple dwelling units aren’t permitted in RS, but ADUs, JADUs and SB 9 projects may be.

Sources & notes

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

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