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

What multifamily in Danville looks like

Danville is mostly single-family neighborhoods, so income property here tends to be small and scarce. What investors usually find:

• Condominiums and townhomes, many in planned developments near downtown and along Camino Ramon
• A modest number of apartment communities, several near the Downtown Business District
• Duplexes on lots zoned D-1 Two Family
• Single-family homes with ADUs or JADUs
• New multifamily sites created by the Town’s 2023–2031 housing element, now zoned M-30 and M-35

Because the Town rezoned sites for high-density housing in 2023 and 2024, the most active part of the market is entitled land and new construction rather than older apartment trades. For financing, see financing 2-4 unit properties and apartment building loans.

Where the zoning allows it

The Town’s residential districts are in Article VI of Chapter XXXII.

The M-35 district in detail. Section 32-29, adopted by Ordinance 2023-02 and amended in 2024, sets objective standards for housing element sites:

• Density of 30 to 35 units per acre, with no minimum lot size
• Three stories, with a mix of 33-, 35- and 37-foot heights averaging 35 feet; two named parcels, 510 La Gonda Way and 425 El Pintado Road, may reach four stories
• 25-foot front and 20-foot side and rear setbacks, rising to 50 feet for second-story elements next to single-family homes
• At least 25% of the site free of buildings and paving
• Average unit size of no more than 1,500 square feet in projects of 10 or more units
• Parking of 1 space per studio, 1.5 per one-bedroom and 2 for larger units, plus a quarter guest space per unit

Housing element. The Town’s 2023–2031 Housing Element plans for 2,241 units, about four times the prior cycle. HCD found it in substantial compliance on April 9, 2024.

ADUs. ADUs and JADUs are allowed in the single-family districts under Section 32-76, and a JADU is capped at 500 square feet. See our ADU investment guide.

SB 9. Danville implemented SB 9 through Resolution 85-2021, according to the Town’s SB 9 page. The Town’s SB 9 FAQ adds local terms:

• No more than two units per lot, counting ADUs and JADUs
• New lots at least 1,200 square feet, and neither less than 40% of the original
• Owner occupancy of one unit, with a three-year affidavit for lot splits
• Height of 35 feet, dropping to 28 feet in Scenic Hillside areas and 24 feet on Major Ridgelines
• Not allowed in very high fire hazard severity zones or historic districts

The two-unit cap means SB 9 adds little for an investor who already plans an ADU. See our SB 9 lot split guide.

Rent rules: state law only

Danville has no local rent control. The Attorney General’s rent cap chart lists only Antioch, Concord and Richmond with local caps in Contra Costa County. Covered Danville units follow the statewide cap for the San Francisco area: 6.3% for increases from August 1, 2025, and 8.8% from August 1, 2026 through July 31, 2027. State just cause rules apply after the required tenancy period. Many Danville rentals are single-family homes or condos owned by individuals, which may be exempt if the lease contains the required notice. See our AB 1482 guide and just cause eviction guide.

Danville rental property rules

• Short-term rentals are banned. The code prohibits short-term rentals in the single-family districts, the D-1 district and the M-35 district. Underwrite every Danville unit as a 30-day-or-longer rental.
• SB 9 units. The Town’s FAQ allows only rentals of 30 days or more on SB 9 units.
• No registry found. We did not find a Town rental registry, inspection program or local relocation ordinance.
• HOA rules. Many condos and townhomes are in planned developments, so check CC&Rs for rental caps or minimum lease terms.

Building, hillside and closing-cost issues

Danville’s hills bring their own limits. The single-family code points to extra hillside and ridgeline rules in Section 32-69, and the SB 9 FAQ lowers height limits there. Very high fire hazard zones are excluded from SB 9 and raise insurance questions for any hillside rental. Older apartments built before modern codes warrant a seismic retrofit review, and buildings of three or more units with elevated balconies need SB 721 inspections. Danville has no city transfer tax; only the county’s $0.55 per $500 applies.

Underwriting a Danville multifamily purchase

1. Confirm the zoning district, any planned development conditions and whether the parcel is a housing element site.
2. For land, test the project against the M-30 or M-35 density floor, height mix and unit-size cap.
3. Classify each unit under the state Tenant Protection Act, including the single-family exemption notice.
4. Assume no short-term rental income anywhere in town.
5. Request rent rolls, leases and estoppel certificates for every tenant.
6. Run conservative numbers with our rental property analysis guide, including insurance for hillside parcels.

Questions people ask

Sources & notes

1. Danville Municipal Code Chapter XXXII via GoCodebook: Article VI, § 32-22, § 32-23 D-1, § 32-24 M-30, § 32-29 M-35, § 32-60 R-B, § 32-61 C
2. Town of Danville, Downtown Business District zoning
3. Town of Danville, 2023–2031 Housing Element
4. Town of Danville, Senate Bill 9 and SB 9 FAQs
5. California Attorney General, rent caps
6. Contra Costa Clerk-Recorder, Documentary Transfer Tax

Note: We did not open the Town’s ADU section (32-76) or the M-8 to M-25 sections. The SB 9 FAQ is undated.

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

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