Multifamily and Duplex Properties for Sale in Discovery Bay: Zoning and Rent Rules

What multifamily in Discovery Bay looks like

Discovery Bay grew from the 1970s on as a planned community of single-family homes, many on waterfront lots with private docks. Apartment buildings are rare. What investors usually buy here:

• Single-family homes rented long term, often on the water
• Homes with ADUs or JADUs
• Townhomes and condominiums in planned developments
• Homes in newer subdivisions such as Pantages, where LAFCo’s 2022 report describes 277 single-family homes on about 132 acres at the east end of Point of Timber Road
• Vacation rentals operating under a county permit

For financing, see financing 2-4 unit properties and apartment building loans.

Where the zoning allows it

Contra Costa County zones Discovery Bay, mostly as P-1 Planned Unit under final development plans. The Pantages area is zoned P-1 with the -UE overlay, according to LAFCo. Some county approvals still modify development plans from 1974, such as CDDP74-03014. That plan’s 15-foot minimum rear yard needed a modification in 2025 to allow a rear deck on a new home.

Housing share. A county General Plan presentation given to the TODB in February 2023 put Discovery Bay’s share of the county’s regional housing need at 494 units, about 6.5% of the unincorporated total. Some of that may be met on housing element sites, so ask the county about any vacant or underused parcel.

ADUs. County ADU rules from Ordinance 2025-07 allow an existing apartment property to convert non-livable space into ADUs for up to 25% of its units. It can also add detached ADUs up to the lesser of its unit count or eight. ADUs and JADUs cannot be rented for under 30 days. See our ADU investment guide.

SB 9. County Chapter 88-36, from Ordinance 2022-14, applies to single-family P-1 areas as well as R districts. That matters in Discovery Bay. The lot must be inside a Census urbanized area or urban cluster and pass the state exclusions, which include flood hazard areas unless the site meets federal flood standards. New units in yard areas are limited to 16 feet with 4-foot side and rear setbacks, and each unit needs one parking space. Waterfront lots may also be limited by CC&Rs and levee easements. See our SB 9 lot split guide.

Rent rules: state law only

There is no local rent control in unincorporated Contra Costa County. The Attorney General’s chart lists only Antioch, Concord and Richmond in the county. Covered Discovery Bay units fall under the state cap for the San Francisco area: 6.3% from August 1, 2025, and 8.8% from August 1, 2026 through July 31, 2027. Many Discovery Bay rentals are single-family homes owned by individuals, which can be exempt with the required lease notice. Units built in the last 15 years, including homes in newer subdivisions, are also exempt from the cap. See our AB 1482 guide and just cause eviction guide.

Discovery Bay rental property rules

• Vacation rentals need a county permit. Under Chapter 88-32, adopted June 2, 2020, ministerial permits last one year and must be renewed 30 days before expiring. Neighbors within 300 feet are notified.
• Operating limits. The county requirements allow two guests per bedroom plus two, one rental per lot, and quiet hours from 10 p.m. to 7 a.m. Non-hosted rentals are capped at 90 days a year, hosted at 180. Events are banned.
• ADUs and larger buildings. ADUs, and units in buildings of five or more units, cannot be short-term rentals.
• Records. Operators keep three years of rental records and need a county business license and transient occupancy registration.
• HOA rules. Many neighborhoods have CC&Rs that may restrict rentals or dock use.

Water, sewer, levee and flood issues

• Utilities. The Town of Discovery Bay CSD supplies water from six wells drawing from an aquifer about 300 feet down and runs two wastewater plants. LAFCo reported 2.35 million gallons per day of treatment capacity against about 1.4 million of demand in 2022. ADUs and added units may owe capacity fees.
• Levees and flood. The CSD maintains levees, and the community sits in the Delta. Check FEMA flood zones, flood insurance costs and any levee easements on waterfront lots.
• Landscaping charges. The CSD maintains common landscape areas in Lighting and Landscaping Zone 8, so check the tax bill for these charges.
• Older buildings. Any older wood-frame building of three or more units with elevated balconies needs SB 721 inspections. Consider a seismic retrofit review on soft soils.
• Transfer tax. Only the county’s $0.55 per $500 applies.

Underwriting a Discovery Bay income property purchase

1. Pull the final development plan and CC&Rs to confirm allowed units, setbacks and rental limits.
2. Confirm flood zone, insurance and any levee or dock obligations.
3. Get TODB water and sewer capacity fees for any ADU or added unit.
4. For a vacation rental, verify the county permit, its renewal date and the night caps.
5. Request leases and estoppel certificates for any long-term tenants.
6. Model both long-term and permitted short-term scenarios with our rental property analysis guide.

Questions people ask

Sources & notes

1. Town of Discovery Bay CSD, Town Services and Capacity Fee Study
2. Contra Costa LAFCO 21-06 staff report (March 2022)
3. Contra Costa County, Envision Contra Costa presentation to TODB (February 1, 2023)
4. CEQAnet SCH 2025061283
5. County Ordinance Code via GoCodebook: P-1, Chapter 82-24, Chapter 88-36, Chapter 88-32, HE-C
6. California Attorney General, rent caps
7. Contra Costa Clerk-Recorder, Documentary Transfer Tax

Note: We did not confirm whether any Discovery Bay parcel is zoned M-district or listed on the housing element inventory, or FEMA flood zone status. The flood-zone exclusion for SB 9 comes from state law cross-referenced in Chapter 88-36.

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

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