Tarzana Multifamily Real Estate Market Overview
Tarzana is a desirable, in the southwestern San Fernando Valley, popular among multifamily investors seeking stable rental demand, suburban appeal, and strong long-term value.
Roughly bounded by Ventura Boulevard to the south, Topanga Canyon Boulevard to the west, Reseda Boulevard to the east, and the Ventura Freeway (US 101) along its southern edge, Tarzana borders Encino to the east and Woodland Hills to the west. Ventura Boulevard serves as the main commercial corridor, offering convenient shopping, dining, and everyday services.
The neighborhood appeals to a range of individuals with its tree-lined streets, excellent schools, beautiful parks, and easy access to hiking trails in the Santa Monica Mountains. Residents also enjoy proximity to Warner Center, Calabasas, and the Westside beaches.
For apartment building owners and investors, Tarzana provides a balanced mix of suburban tranquility, solid tenant demand, and resilient cash flow in a well-established San Fernando Valley location with convenient freeway access and limited new multifamily supply.
2025 Tarzana Multifamily Market Statistics at a Glance
Tarzana Annual Multifamily Apartment Building Sales Statistics*
Buildings Sold: 3
Avg. Sale Price: $4,411,667
Avg. Price/Unit: $189,071
Avg. Months to Sale: 4.1 mos
Avg. Price/SF: $170
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It is imperative to understand how rent control and Measure ULA exposure will impact the value of your Tarzana apartment building
Tarzana Multifamily Market Overview 2026
Tarzana is a suburban San Fernando Valley neighborhood within the City of Los Angeles known for solid renter demand, family-oriented demographics, proximity to Ventura Boulevard and major freeways, and a more residential character compared with denser Valley submarkets. Cap rates in the area typically range from approximately 5.0% to 6.0% (with newer or higher-quality assets sometimes trading tighter), reflecting West Valley pricing. Price per unit commonly falls in the $200,000 to $350,000+ range, depending on building quality, unit mix, condition, vintage, and exact location.
The typical apartment building is a smaller-to-midsize 4- to 30-unit property, often garden- or courtyard-style low-rise, with a substantial portion of the older inventory subject to the City of Los Angeles Rent Stabilization Ordinance (RSO). Buyer demand comes from private investors, 1031 exchange buyers, local operators, and long-term holders seeking stable cash-flow assets in a established West Valley submarket with consistent rental demand.
Tarzana Rent Control and Measure ULA
As part of the City of Los Angeles, Tarzana properties are subject to the Los Angeles Rent Stabilization Ordinance (RSO / LARSO). Most multi-unit buildings with certificates of occupancy dated before October 1, 1978 are covered. The allowable RSO rent increase for the period July 1, 2026 through June 30, 2027 is 3% (under the updated formula of 90% of CPI with a 1% floor and 4% ceiling; utility and dependent adders have been eliminated).
Buildings not covered by the RSO may still fall under AB 1482 statewide protections (generally 5% + CPI, currently 8.7% for the Los Angeles area for increases effective August 1, 2026–July 31, 2027). Measure ULA does apply in Tarzana. As a City of Los Angeles neighborhood, sales of qualifying properties (generally $5 million and above) are subject to the Measure ULA transfer tax surcharges (4% on $5M–$10M sales; 5.5% on $10M+).
How to Sell a Tarzana Apartment Building
Tarzana benefits from steady renter demand and solid long-term fundamentals in the West Valley. However, RSO restrictions significantly impact cash flow growth and buyer underwriting for older buildings, and Measure ULA can affect net proceeds on higher-priced sales. Sellers of long-held properties must also navigate low tax basis, depreciation recapture, and potential 1031 exchange planning.
An experienced multifamily broker who understands Tarzana’s position within the broader San Fernando Valley market, Los Angeles RSO rules, Measure ULA implications, and the local/1031 buyer pool can help you evaluate pricing and the optimal path to maximize your net proceeds.
Tarzana Multifamily Market Statistics
Average Rent vs Vacancy Rate- Historical & Estimated
2025 Q3: Tarzana, California multifamily Average Rent: $2,242 Average Vacancy Rate: 3.4%Average GRM and Cap Rate- Historical
2025: Tarzana, California multifamily apartment buildings sold average Cap Rate 4.9%Number of Multifamily Buildings Sold- Historical
2025: Tarzana, California Multifamily Buildings Sold: 3Average Price/Unit and Price/SF- Historical
2025: Tarzana, California multifamily average Price/Unit Sold: $189,071 Price/SF Sold: $170Historical and estimated market statistics for the Tarzana, California multifamily apartment building submarket. The graphs above show the average Price/Unit, Price/SF, GRM, Cap Rate, Average Asking Market Rent and Vacancy for Tarzana multifamily apartment buildings for the years 2020-2025. *All data has been obtained from CoStar. Jake Plewa, the Taksa Investment Group and ReMax Commercial cannot guarantee the accuracy of the data above. The graphs and statistics are for information purposes only. Frequently Asked Questions: Tarzana Apartment Buildings
What is the typical cap rate and price per unit in Tarzana?
Cap rates in Tarzana generally range from approximately 5.0% to 6.0%. Price per unit commonly falls between $200,000 and $350,000+, depending on building condition, unit mix, vintage (RSO vs. newer), location, and quality.
Is Tarzana under rent control?
Yes. As part of the City of Los Angeles, most multi-unit buildings built before October 1, 1978 are covered by the Los Angeles Rent Stabilization Ordinance (RSO). The allowable increase for July 1, 2026–June 30, 2027 is 3%. Some buildings may instead fall under AB 1482.
Does Measure ULA apply to apartment sales in Tarzana?
Yes. Measure ULA is a City of Los Angeles ordinance and applies to qualifying property sales in Tarzana (and other LA City neighborhoods).
How do I sell an apartment building in Tarzana?
Work with a broker who understands Tarzana’s position in the San Fernando Valley, the Los Angeles RSO system, Measure ULA transfer tax implications, the local and 1031 buyer pool, and how to accurately present both in-place income and long-term upside. Precise pricing and clear communication of the regulatory framework are especially important in this market.
Disclaimer The information on this page is provided for general informational purposes only and does not constitute legal, financial, tax, or investment advice. Jake Plewa, the Taksa Investment Group, and RE/MAX Commercial make no representations or warranties regarding the accuracy, completeness, or reliability of any data, statistics, graphs, or market information presented. Market conditions change, and past performance is not indicative of future results. You should independently verify all information and conduct your own thorough due diligence, including consulting qualified professionals, before making any decisions related to the sale or purchase of an apartment building.
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