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

What multifamily in Albany looks like

Albany packs a lot of rental housing into about a square mile and a half. Two-unit buildings and small walk-up apartments line the blocks between Solano and San Pablo Avenues. The high-rise condominium and apartment towers on the west side of Albany Hill have their own zoning district. Since the 2022 San Pablo Avenue rezoning, newer mixed-use buildings are rising on that corridor. UC Berkeley’s University Village family housing also sits in Albany, which keeps rental demand steady. For financing, see financing 2-4 unit properties and apartment building loans.

Where the zoning allows it

Residential district purposes are in Section 20.12, and densities and heights are in Section 20.24.020:

Minimum lots are 3,750 square feet in R-1 through R-3. On San Pablo Avenue, Ordinance 2022-03 set residential parking minimums at zero and requires 100 square feet of usable open space per unit. Projects of more than six homes generally need a major use permit.

ADUs. Section 20.20.080 allows, on a two-family or multifamily lot, either one detached, converted or attached ADU, or two detached ADUs. It also allows conversion ADUs in existing non-living space, at least one per structure and up to 25% of the existing unit count. ADUs need no parking, cannot be rented for under 30 days and have no owner-occupancy rule. Single-family lots can add one ADU and one JADU; JADUs require owner occupancy. Attached ADUs top out at 850 square feet, or 1,000 with more than one bedroom. See our ADU investment guide and SB 9 lot split guide.

Rent rules: state cap plus a local rent review program

The Attorney General’s rent cap page does not list Albany among the cities with a local rent cap, so covered units follow AB 1482. Alameda County is in the AG’s San Francisco Area region, with a cap of 8.8% for increases from August 1, 2026 through July 31, 2027. See our AB 1482 guide.

Albany adds its own Rent Review Program, Section 5-25 of the Municipal Code, adopted as Ordinance 2018-02 and in effect since November 2, 2018:

• A tenant can request review of an increase that pushes rent more than 5% above base rent, alone or combined with other increases within 12 months.
• The request must be made within 15 days of the notice. The landlord must acknowledge it within 15 days or the increase is void.
• Conciliation is followed by mediation before a Rent Review Officer within 60 days. The officer’s recommendation is non-binding, and the review does not delay the increase.
• Landlords must give notice of the program at lease signing and with any increase over 5%, in the city’s three predominant languages. An increase without proper notice is void and is a defense in an eviction for nonpayment.

Albany has no city just cause ordinance; state just cause rules apply to covered tenancies. In March 2026, the City Council directed staff, 4 to 1, to draft just cause and anti-harassment ordinances, according to a council meeting summary (not a city source). We have not confirmed adoption. See our just cause eviction guide.

Albany rental property rules

• Registration and fee. Under Section 5-25, landlords must register each residential rental property with the city and pay an annual fee set by Council resolution.
• Rent review notices. Keep copies of every notice of the program’s availability; missing notices can void an increase.
• Short stays. ADUs and JADUs cannot be rented for under 30 days.

Soft-story retrofits

Albany’s Soft Story Retrofit Program, Ordinance 2023-04 adopted July 17, 2023 and codified as Section 12-15, is mandatory. It reaches smaller buildings than many Bay Area programs, covering pre-1981 buildings of three or more units with a wood-framed target story. Screening forms were due October 15, 2024. Permit and completion deadlines run by tier:

See our seismic retrofit guide. Buildings of three or more units with elevated balconies also need SB 721 inspections.

Underwriting an Albany multifamily purchase

1. Confirm the zoning district and whether the parcel is in the San Pablo Avenue plan area.
2. For any pre-1981 building of three or more units, get the soft-story screening form, tier and permit or completion status.
3. Model rent increases at the AB 1482 cap, but plan for rent review requests on any increase over 5%.
4. Confirm city registration and fee payments, and copies of rent review notices.
5. Test ADU upside under Section 20.20.080, including conversion ADUs.
6. Get estoppel certificates and add the $15 per $1,000 city transfer tax from the County Clerk-Recorder to our rental property analysis.

Questions people ask

Sources & notes

1. California Attorney General, Rent Caps
2. City of Albany, Rent Review
3. Albany Municipal Code Section 5-25, Rent Review Program (Ord. 2018-02) (eCode360)
4. Albany Municipal Code (GoCodebook): Section 20.12, Section 20.24.020, Section 20.20.080
5. City of Albany Ordinance 2022-03, San Pablo Avenue Specific Plan amendments
6. City of Albany, Soft Story Retrofit Program
7. Alameda County Clerk-Recorder, Real Property Transfer Tax
8. Council meeting summary, March 2, 2026 (third-party summary)

Note: Albany’s draft just cause ordinance may change these rules; check with the city before serving any notice.

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

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