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

What multifamily in Castroville looks like

Castroville’s rental stock is a working-town mix: older duplexes and small apartment buildings on the grid streets off Merritt Street, houses with a second unit behind, a few mid-sized complexes, and newer affordable developments built under the 2007 Community Plan. Much of the demand comes from people who work in the North County farm and food-processing economy. Two-to-four-unit buildings are the most common purchase; see financing 2-4 unit properties and, for larger buildings, apartment building loans.

Where the zoning allows it

Castroville is unincorporated, so Monterey County zoning applies, shaped by the Castroville Community Plan. The plan’s final EIR listing projected about 1,655 homes over roughly 403 acres, with a Cypress Residential opportunity area and housing along the Merritt Street Corridor.

HDR projects of more than five units need a trash enclosure and a recreation area of at least 3% of the lot, and projects of 25 or more units must meet County trip-reduction rules. ADUs meeting County Section 21.64.030 are allowed without a separate use permit in HDR. See our ADU investment guide. SB 9 lot splits can apply on single-family lots within the urbanized Castroville area, but confirm eligibility, flood status and sewer capacity with the County and the CSD.

A local benchmark. Cynara Court at 10860 Merritt Street, approved in 2008, put 40 affordable units on about 1.34 acres, close to the MU-C ceiling of 30 per acre. It used a state density bonus to provide 83 parking spaces against 96 otherwise required.

Rent rules: state law only

Rent caps. The Attorney General’s rent cap page, updated July 16, 2026, places Monterey County in All Other Counties: increases of up to 7.7% from August 1, 2025, and up to 8.6% from August 1, 2026 through July 31, 2027. The AG’s local ordinance chart lists only Salinas in Monterey County, and the Salinas ordinance does not reach unincorporated Castroville. See our AB 1482 guide.

Just cause. We found no County tenant protection ordinance covering Castroville, so covered tenancies follow the state just cause rules. See our just cause eviction guide.

Affordable units. Buildings financed or approved as affordable housing, like Cynara Court, carry recorded income and rent limits that override market rents. Read every regulatory agreement on title.

Castroville rental property rules

• Short-term rentals. The County’s short-term rental page defines a short-term rental as 30 consecutive days or less and requires a discretionary permit in designated districts only. On coastal parcels, the County handles them as a similar-use coastal development permit it estimates at about $12,000.
• Lodging tax. Rentals of 30 days or less owe the County’s 10.5% transient occupancy tax and need a posted registration certificate. Paying the tax does not legalize an unpermitted use.
• Homestays and limited vacation rentals. The HDR chapter lists homestays and limited vacation rentals under Section 21.64.290; confirm what that section currently permits before underwriting any short-stay income.

Water, flooding and older buildings

Water and sewer. The Castroville Community Services District provides both. It reports 2,145 water connections and about 780 acre-feet a year, drawn mostly from the 400-foot aquifer, with arsenic treatment on one well. New units need CSD capacity, so ask for a will-serve letter before planning an ADU or added units, and check the CSD’s rates and fees for connection charges.

Flood risk. Castroville sits between the Tembladero and Moro Cojo sloughs and the Salinas River. For Cynara Court, the County cited a 12-foot base flood elevation and required floors at least a foot above it. Get a flood determination and insurance quote early.

Older stock. Pre-1980 wood-frame buildings warrant a seismic retrofit review, and buildings of three or more units with elevated walkways or balconies need SB 721 inspections.

Underwriting a Castroville multifamily purchase

1. Confirm the zoning string and density number, and whether the parcel is coastal or inland.
2. Verify permits for every unit, especially converted garages and rear units.
3. Check title for affordability covenants or density bonus agreements.
4. Get CSD water and sewer records and a flood determination for the parcel.
5. Classify units under AB 1482, model increases at or below 8.6%, and gather leases and estoppel certificates.
6. Rebuild the operating budget with reassessed taxes, CSD charges and flood insurance in our rental property analysis.

Questions people ask

Sources & notes

1. Monterey County Planning Commission Resolution 08038 (Cynara Court, 2008)
2. CEQAnet, Castroville Community Plan final document
3. Title 21, Chapter 21.10 HDR
4. Title 21, Chapter 21.18 LC
5. Castroville Community Services District, water
6. County HCD, short-term rentals
7. County Treasurer-Tax Collector, TOT
8. California Attorney General, rent caps

Note: We did not review the Community Plan’s development standards, Section 21.64.290 or CSD connection fees.

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

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