Multifamily and Duplex Properties for Sale in Del Rey Oaks: Zoning and Rent Rules

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What multifamily in Del Rey Oaks looks like

Del Rey Oaks is mostly single-family homes on wooded lots, so income property here is a short list: duplexes and small apartment or townhouse groups in the city’s R-2 and D districts, houses with an accessory unit, and, over time, new affordable housing planned on City-owned land at the former Fort Ord. The city covers only about 670 acres, according to its Housing Element environmental notice, so listings are infrequent and each one deserves a close read of its zoning. A duplex or fourplex is the usual purchase; see financing 2-4 unit properties, and for anything larger, apartment building loans.

Where the zoning allows it

District	Multifamily rule	Key limits
R-1 (Ch. 17.08)	One home per lot; a two-family dwelling needs a use permit	6,000 sq ft minimum lot; 30 ft height; footprint 40% down to 20% on larger lots; 288 sq ft garage per home, no carports
R-2 (Ch. 17.12)	Two-family dwellings, flats, dwelling groups and multiple dwellings permitted; more than one dwelling per lot	3 stories, 35 ft (R-1 limit if surrounded by R-1); 60% coverage; 15 ft rear yard and 15 ft between buildings
D (Ch. 17.16)	Condominiums and townhouses above 5 and up to 18 units per gross acre, all by use permit	14,000 sq ft lot; 1,500 sq ft of land per unit; 400 sq ft open space per unit; 50% coverage; fiscal impact study required
AH-OZ overlay (Ch. 17.90)	Income-restricted housing on Fort Ord Sites 1 and 1a	20–25 units/acre; 2-acre minimum site; 35 ft, 3 stories; development agreement and design permit
C (Ch. 17.20)	R-district uses allowed alongside commerce	Dwellings follow R-1 side yards unless the ground floor is commercial

The D district. The code explains that 34 acres deeded to the city for recreation are in this zone and that it exists to control how open land is subdivided. Every D project needs a Planning Commission use permit, with findings on grading, tree removal, circulation and open space, and an independent fiscal impact study paid by the developer. Parking is 1.75 spaces per studio to two-bedroom unit and 2 per larger unit, one of them covered, with no curbside parking counted.

The Fort Ord overlay. Chapter 17.90, adopted by Ordinance 315 in October 2023, covers City-owned parcels north and south of South Boundary Road, east of General Jim Moore Boulevard. At least a quarter of all units must serve low, very low or extremely low income households, and affordability must last at least 55 years. The overlay is tied to the city’s housing plan: the 2023 environmental notice describes rezoning to meet regional housing needs, with a cited target of 270 affordable units. Whether those sites are under contract or entitled is something to confirm with the city.

ADUs. Chapter 17.70 (Ordinance 308, 2021) allows ADUs and JADUs on any lot zoned for residential use, by right with a building permit. Existing multifamily buildings can add internal ADUs equal to 25% of the existing unit count and up to two detached ADUs. Size caps are 1,000 square feet for a studio or one-bedroom and 1,200 for two or more bedrooms, and the city must act within 60 days where a dwelling already exists. The older R-1 auxiliary unit rule, with its 450 square foot cap and owner-occupancy condition, predates state ADU law; ask the city which applies. See our ADU investment guide.

SB 9. The R-1 chapter does not mention SB 9. Because Del Rey Oaks is an incorporated city, state SB 9 lot split rules may reach qualifying R-1 lots, but confirm eligibility, tree and slope constraints and any local implementing rules with the city.

Rent rules: state law only

Rent caps. The Attorney General’s rent cap page, updated July 16, 2026, places Monterey County under All Other Counties: covered units could rise up to 7.7% for increases from August 1, 2025, and up to 8.6% for increases from August 1, 2026 through July 31, 2027. Salinas is the only Monterey County city on the AG’s local ordinance chart. See our AB 1482 guide.

Just cause. We found no Del Rey Oaks tenant protection chapter in the city code index, so covered tenancies follow state just cause rules. See our just cause eviction guide.

Restricted units. Any unit built under the AH-OZ overlay carries a recorded affordability agreement with the city, and rents follow that agreement, not the market.

Del Rey Oaks rental property rules

Short-term rentals need two approvals. R-1 and R-2 both list short-term rentals as a conditional use requiring a Planning Commission permit (Ordinance 293, 2018). Chapter 5.24 adds an annual, non-transferable city license.
A 25-license cap on vacation rentals. Un-hosted rentals are capped at 25 citywide, with a waiting list; hosted home-sharing is not capped. Un-hosted operators need a nuisance response plan, a 24-hour contact and an annual safety inspection.
No short stays in ADUs. Chapter 5.24 bars transient use of ADUs and JADUs, and Chapter 17.70 sets a 30-day minimum rental.
Penalties. Unlicensed operation can draw up to $2,500 per day or forfeiture of rents, and unpaid penalties can become a lien.
Lodging tax. Short stays owe the city’s 12% transient occupancy tax.

Older buildings, trees and transfer costs

Older stock. Check the year built on every building: pre-1980 wood-frame buildings warrant a seismic retrofit review, and buildings with three or more units and elevated balconies or walkways need SB 721 inspections.

Site constraints. The D chapter’s findings on topography, vegetation and tree removal signal how the city reviews new units on wooded lots. Expect design review under Chapter 17.56 for added units.

Transfer tax. The city’s $0.275-per-$500 share is credited against the county tax under Monterey County Chapter 5.32. The combined standard rate is $0.55 per $500 of taxable value, subject to exemptions and the recorded transaction. Confirm the calculation with escrow.

Underwriting a Del Rey Oaks multifamily purchase

Confirm the district (R-1, R-2, D or overlay) and whether the existing unit count is legal or nonconforming.
Check permits for every unit, including any auxiliary unit approved under the older R-1 rule.
For D-zone condominiums or townhouses, read the HOA documents and the original use permit conditions.
Classify units under AB 1482, model increases at or below 8.6% for covered units, and gather leases and estoppel certificates.
Do not count short-term rental income unless a conditional use permit and city license are already in place.
Rebuild expenses with reassessed property tax, city and county transfer tax and insurance in our rental property analysis.

Questions people ask

Does Del Rey Oaks have rent control?

No local ordinance. AB 1482 applies to covered units, with an 8.6% cap for increases from August 1, 2026.

Where can I buy or build a duplex?

R-2 permits two-family dwellings and multiple dwellings outright. In R-1, a two-family dwelling needs a use permit.

What is the D district?

A density and design control zone for condominiums and townhouses at more than 5 and up to 18 units per gross acre, always by use permit.

What is planned on the Fort Ord land?

The AH-OZ overlay allows 20 to 25 units per acre of income-restricted housing on City-owned Sites 1 and 1a near South Boundary Road.

Can I add an ADU to a duplex or apartment building?

Yes. Internal ADUs up to 25% of the existing units and up to two detached ADUs are allowed.

Can I run a vacation rental?

Only with a conditional use permit and a city license, and un-hosted licenses are capped at 25 citywide.

Is there a city transfer tax?

The city share is included in the county rate. The combined standard rate is $0.55 per $500 of taxable value, subject to exemptions and the recorded transaction. Confirm the calculation with escrow.

Sources & notes

Note: We did not open the adopted 6th Cycle Housing Element, the zoning map or Chapters 17.04, 17.36 and 17.56. The AH-OZ text contains apparent drafting inconsistencies, so confirm its operative standards with the city.

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

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