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Neighborhoods of LA That Will Give You the Highest Rental Yield

For many years in a row, Los Angeles has been building its reputation as a city where all dreams come true. Especially, if these dreams have something to do with money and fame. Given this, there’s no wonder that the local rental market in today’s LA leaves much to be desired. Vacancy rates are ridiculously low, real estate prices keep going up, and the entire city of angels seems to be running out of a room.

But it doesn’t mean the city is bad for landlords. Believe it or not, Los Angeles is considered a great spot for investing in rental properties. The second-largest city in the country, LA boasts of great climate, stable job market, and exceptional diversity, so it comes as no surprise that people are flocking there no matter what.

There is one thing you need to understand. As long as a city is attractive for prospective tenants, it remains great for buying-to-let opportunities. But there’s a catch: cities as large as LA are composed of multiple neighborhoods and not all of them are equally good for the purpose. That’s why you need to make sure you’re investing in the right location.

In case you’re new to this business, you’re likely to think that most expensive zip codes like Beverly Hills, Santa Monica, or Venice Beach will give you the biggest rental yield. But property management business is a little bit more complicated, and in reality, things are far otherwise. In fact, investing in more affordable neighborhoods (at least some of them) can give you a bigger return on investment in a shorter period of time.

And I am ready to tell you what those neighborhoods are. Now, as the perks of living in the city of angels are clear, let’s take it one step further and discover what neighborhoods are best for buying income property.


Median rental price: $4,367/mo
Median purchase price: $2,309,650

According to recent statistics, rental prices in Westwood are among the highest in the entire Los Angeles. At the same time, a median purchase price for properties in this area is only slightly higher than in Silver Lake or West LA. Given all this, it comes as no surprise why this neighborhood is so popular for rental property investments.

Silver Lake

Median rental price: $3,964/mo
Median purchase price: $1,242,800

Another great spot for buying income property is considered the hippest neighborhood in the entire city. Statistics don’t lie, and it tells us that local real estate prices are trending upward. But so far, buying rental property in Silver Lake is still affordable, so grab your chance to invest in the neighborhood that will one day be one of the priciest in the city.

West Los Angeles

Median rental price: $2,934/mo
Median purchase price: $1,199,725

While most locals know that West LA is a neighborhood of almost limitless dining and shopping options, only a few realize that the area is also great for rental property investment. Given that only in the last year the median prices grew by 18 percent, there are grounds to assume that West LA will gain popularity in the years to come.

Mar Vista

Median rental price: $4,184/mo
Median purchase price: $900,000

Some call this place immensely down to earth in a good sense, others say it’s the friendliest part of Los Angeles, and we’re telling you this neighborhood is worth your attention if you’re looking for the right place for rental property investments.

Los Feliz

Median rental price: $4,471/mo
Median purchase price: $2,372,450

Here’s a fact number one: Los Feliz is home to a majority of local artists, musicians, actors, and creative families. Here’s a fact number two: year by year, thousands of creative people are moving to LA in a hope to get famous. Now combine the two and you’ll realize why this neighborhood will always be popular among tenants. And as experience confirms over and over again, there are plenty of tenants, there are lower vacancy rates and higher rental yield. Do you really need any more proof that investing in Los Feliz is a good idea?

Hollywood Hills

Median rental price: $5,529/mo
Median purchase price: $1,589,467

Hollywood Hills combines the most desirable features of an upscale residential neighborhood. It is secluded high in the Santa Monica mountains, far apart from noises and odors of the inner city, and has terrific views of Los Angeles. At the same time, the area is very close to the Los Angeles Downtown and intercepted by interstates. There are plenty of great single-family houses, condos, and apartments on the market, waiting for its advisor.

Beverly Hills

Median rental price: $6,633/mo
Median purchase price: $2,380.760

The most famous neighborhood of Los Angeles if not the entire world- Beverly Hills is a stronghold of the most affluent people of the continent. The area is filled with mansions, castles, and the pompous house of all the different styles and eras. Investing in the  Beverly Hills property is only for the big players, who can bid a lot. However, this kind of investment always follows an upward trend, there is great demand for movie stars neighbors both domestically and internationally.

Woodland Hills

Median rental price: $2,702/mo
Median purchase price: $1,499,900

Woodland is a different specimen than luxurious estate neighborhoods. It is removed from the major routes and the city center. However, it surrounded by marvelous nature and abundance of greenery. There is access to the San Fernando Valley, and countless possibilities for hiking, biking and walking the trails. The neighborhood is perfect for families and the elderly, who value peace and comfort. There is also a small local center with bars and restaurants, so the residents won’t get bored.

Mid City West

Median rental price: $4,996/mo
Median purchase price: $420,000

Another great family-oriented community with the reasonable real estate prices and high rent. Mid-City West is one of the few LA’s walkable neighborhoods. It is laid back and suburban, with a slight artistic vibe. This district is not just a residence- it is a community, where people are warm and empathetic and tend to know their neighbor across the street. The property prices are on the rise for the past three years, while landlords experience lower vacancy rates than many surrounding areas. If you have not looked into investing in Mid City West, you are definitely missing out.

Downtown LA

Median rental price: n/a
Median purchase price: n/a

The heart and the brain of the city. Downtown LA is the core of the cities financial, entertainment, and service industry. Despite the fact that families do not usually choose to reside here, it is a primary spot for young professionals in their 20’s and 30’s. The neighborhood is the center of their social, professional, and artistic life. The most potent investment properties here are high-rise condos and apartments. The rent is significantly higher than in a similar neighborhood, but the name sale itself. People pay for the location, they pay the price to be in the center of the urban landscape. Investments in such properties do not depreciate quickly.

The center of American’s film and television industry, Los Angeles has all the potential of becoming your personal mecca of property management opportunities. Just like it’s hardly possible to imagine why people would stop dreaming about moving to LA, it’s impossible to argue that investments in local rental properties will pay off greatly. LA is for dreamers, go make your landlord’s dream come true.


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