What Are the Best Areas for Rental Income Properties in California?


Real estate in California has always been appealing and this year is no different. Even with the impact from the pandemic, the California real estate market is quickly picking up speed as new investors and families look to move somewhere more special after such a stressful year. As the hot summer days start to end, it’s the perfect time to jump ship and head out west.

When it comes to the current outlook of the California market, it’s important to look for areas that have a high quality of life but aren’t in the spotlight as much as cities like Los Angeles and San Francisco. There are plenty of options depending on where in the state you’re looking to move into.

Douglas City – Northern California’s Hidden Gem

Douglas City is the ideal city for nature lovers and those looking to start a rental property that functions as a destination for vacation rentals. Being close to beautiful waterfalls and hiking trails that range from casual to advanced means there is never an excuse to not get out and enjoy the weather!

The median home price for Douglas City is currently $334,883 with median monthly rent just over $2,800. Despite a rocky year during lockdown, Douglas City home values have increased 12.8% over the past year and the trajectory is steadily trending up.

Elk Grove – Lucrative Rental Property Near Sacramento

Sacramento County has always been in the sights of vacationers from all around the world wanting the perfect snapshot of what makes California so idyllic. With access to amazing recreation areas such as Yosemite National Park, Elk Grove has been exploding in growth for over 10 years but the speed bump of the real estate market has made an opening for interested parties to take a moment and find the perfect spot.

Costing more than Douglas City, Elk Grove has a median home price of $497,829 with monthly rent at $1,935. One of the most common trends we’re seeing in Elk Grove is the purchasing of properties to be used as Airbnb’s or vacation rentals as the area is becoming more and more popular with travelers spending more time adventuring in nature.

Winchester and Hawthorne – The Perfect Slices of Southern California

Everyone wanting to experience the traditional California has dreams of sand, sun and stars. Destinations such as Palm Springs and Los Angeles can quickly escape the budget of a majority of investors, families and even individuals which is why Winchester has caught the eye of keen house hunters.

Median home prices in Winchester are nearing half of a million at $495,662 but monthly rent only has a median of $1,843. A large reason for the rental price being lower than expected for such a prized area circles back to the same trend as Elk Grove, more properties turning into Airbnb vacation rentals.

Hawthorne may be more inviting to investors as the median home prices are higher at $832,184 but rent is still catching up and can be similar to Winchester at $1,731 giving a great opportunity to invest in a property that is already increasing ROI with each passing month.

California real estate doesn’t require having the money of a celebrity or star to be a part of the Golden State. Ride the wave of the building housing market with the help of the professionals from the Potempa Team.

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