Multifamily and Duplex Properties for Sale in Los Altos: Zoning and Rent Rules

What multifamily in Los Altos looks like

Los Altos is overwhelmingly single-family, so apartment buildings are scarce and clustered. Most sit in the multiple-family districts around downtown, along San Antonio Road and near El Camino Real, along with condominium and townhome complexes. The newest capacity is in mixed-use and residential-only buildings on El Camino Real and at the downtown edge, where housing over shops is permitted by right. On single-family lots, ADUs and SB 9 projects are the main ways to add rental units. For two to four units, read financing 2-4 unit properties; for larger buildings, see apartment building loans.

Where the zoning allows it

Los Altos divides its multiple-family land into five numbered R3 districts in Title 14, and also allows housing in its downtown and thoroughfare commercial districts.

Maximum density is expected. In R3-1, Section 14.24.030 requires projects to be built at the maximum permitted density unless the City Council finds that fewer units would harm health or safety or would improve affordability within the project. That cuts against buying an R3-1 lot to build a few large units.

Open space on El Camino. CT multifamily projects need an average of 50 square feet of private open space per unit plus common open space that rises from 800 square feet for 2 to 10 units to 3,200 square feet for 51 or more.

Inclusionary housing. Article 1 of Chapter 14.28, last amended by Ordinance 2022-485 on March 8, 2022, applies to projects creating five or more units. Projects of 5 to 9 units set aside 15% at moderate, low or very low income, or may pay an in-lieu fee. Rental projects of 10 or more provide 20% at low income or 15% at very low income, and ownership projects of 10 or more provide 15%, mostly moderate income. Fractions round up, so a six-unit project owes a full affordable unit.

SB 9 and ADUs. Chapter 14.64, adopted by Ordinances 2024-513 and 2024-514 in 2024, limits SB 9 to R1 lots, excluding historic properties. Units are two stories and 27 feet, or one story and 20 feet on flag lots, with 4-foot side and rear setbacks and a 25-foot front setback. Lot splits need a three-year owner-occupancy affidavit, and an existing lot can reach four units counting ADUs, plus junior ADUs. ADU rules are in Chapter 14.14. See our SB 9 lot split guide and ADU investment guide.

Rent rules: state law only

Los Altos has no local rent stabilization. The Attorney General’s rent cap page, updated July 16, 2026, groups Santa Clara County with All Other Counties: covered units may rise up to 8.6% for increases starting August 1, 2026 through July 31, 2027, after 7.7% for the year before. San Jose and Mountain View are the only cities in the county on its chart of local rent ordinances. Los Altos landlords with covered units follow AB 1482’s cap and just-cause rules; buildings under 15 years old and qualifying individually owned homes are generally exempt with proper notice. See our AB 1482 guide and just cause eviction guide.

Los Altos rental property rules

• No short-term rentals. Chapter 14.30, adopted May 22, 2018, makes rentals of fewer than 30 consecutive days a prohibited use in every zoning district. There is no hosted or primary-residence exception in the text, so model every unit, ADU and SB 9 home as a 30-day-plus rental.
• SB 9 units. Chapter 14.64 separately bars short-term rental of any unit it creates.
• Transfer tax. The city’s Chapter 3.28 real property transfer tax is 27.5 cents per $500, administered by the County Recorder; confirm how it combines with the County tax in escrow.
• Business license. Rental operators should confirm whether a city business license applies under Chapter 4.04.

Older buildings and building issues

Los Altos’s older apartment buildings are mostly low-rise wood frame, often with carports or tuck-under parking; have any older building checked for seismic retrofit needs. Buildings of three or more units with elevated decks, balconies or walkways need SB 721 balcony inspections. Downtown mixed-use projects in CD/R3 must wrap structured parking with active uses or sink it below the sidewalk, which affects the cost of adding parking to a redevelopment.

Underwriting a Los Altos multifamily purchase

1. Identify which of the five R3 districts, or which commercial district, applies; the standards differ.
2. For redevelopment, confirm the R3-1 maximum density rule and the inclusionary share at five or more units.
3. Classify units under AB 1482 and model increases at or below 8.6% for covered units.
4. Exclude short-term rental income; the city bans stays under 30 days.
5. Collect leases, the rent roll and estoppel certificates.
6. Rebuild expenses with reassessed taxes, SB 721 and seismic costs in our rental property analysis.

Questions people ask

Sources & notes

1. Los Altos Municipal Code (GoCodebook)
2. Chapter 14.24, R3-1 Multiple-Family
3. Chapter 14.52, CD/R3
4. Chapter 14.44, CD
5. Chapter 14.50, CT
6. Chapter 14.28 Article 1, Inclusionary Housing
7. Chapter 14.64, Dual Opportunity Developments (SB 9)
8. Chapter 14.30, Short-Term Rental Prohibition
9. Chapter 3.28, Real Property Transfer Tax
10. California Attorney General, rent caps

Note: We did not review the R3-4.5, R3-5, R3-3 or R3-1.8 chapters, the ADU chapter, the density bonus article or any seismic program. Locations and building types are general descriptions, not from a city source.

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

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