LA Apartment Cap Rates and Prices Per Unit by Neighborhood, 2026
Q4 2026
What a Cap Rate Tells You
A capitalization rate, or cap rate, is a building’s net operating income (NOI) divided by its price. If a building earns $100,000 in NOI after operating expenses and sells for $1,600,000, its cap rate is 6.25%. Buyers use it to compare buildings quickly: the lower the cap rate, the more the buyer is paying for each dollar of income.
Cap rates are not the same everywhere. They move with the neighborhood, the age of the building, how much rent control limits future rent growth, the building’s condition, and interest rates. That is why one citywide or countywide number is not very useful, and why we show the neighborhoods one at a time below.
Where This Data Comes From
The figures below come from sold multifamily properties in Los Angeles County in 2026, taken from CoStar sales data and analyzed by Highlight Multifamily Group. We split the sales by building age, because older buildings generally fall under rent stabilization while buildings built in 1978 or later fall under the statewide AB 1482 cap, and the two groups trade differently. Santa Monica, West Hollywood, and Beverly Hills have their own rent control rules, separate from the City of Los Angeles.
We only show a number when enough sales stand behind it. If a neighborhood did not have enough sales or reported cap rates, the table says so, rather than guessing.
Pre-1978 (RSO) Buildings by Neighborhood
Older buildings make up most of the sales, so this is the table most owners will care about. Neighborhoods are listed from the highest median price per unit to the lowest.
| Neighborhood | Median Price Per Unit | Median Price Per SF | Typical Cap Rate Range |
|---|---|---|---|
| Brentwood | $475,0003 sales | $363 | Not enough reported cap rates |
| Beverly Hills | $442,67912 sales | $444 | 4.50% to 5.61%9 reported cap rates |
| Santa Monica | $388,33334 sales | $398 | 4.81% to 5.96%19 reported cap rates |
| West Hollywood | $279,50013 sales | $298 | 4.98% to 5.85%10 reported cap rates |
| West LA | $266,98456 sales | $316 | 4.76% to 6.02%44 reported cap rates |
| Silver Lake | $225,00011 sales | $270 | 5.44% to 6.30%7 reported cap rates |
| Hollywood | $210,40023 sales | $267 | 5.83% to 7.06%18 reported cap rates |
| Mid-Wilshire | $209,3755 sales | $277 | 5.63% to 6.41%5 reported cap rates |
| North Hollywood | $189,50027 sales | $247 | 5.55% to 6.98%24 reported cap rates |
| East Hollywood | $186,66713 sales | $245 | 6.00% to 6.55%7 reported cap rates |
| Pico-Union | $184,00011 sales | $294 | 7.00% to 8.00%5 reported cap rates |
| Van Nuys | $178,16712 sales | $230 | 5.40% to 6.06%10 reported cap rates |
| Koreatown | $173,68434 sales | $230 | 5.86% to 7.34%26 reported cap rates |
| South LA | $143,49844 sales | $193 | 6.33% to 7.99%26 reported cap rates |
| Westlake | $133,1507 sales | $237 | 5.28% to 6.20%6 reported cap rates |
Source: Highlight Multifamily Group analysis of CoStar sold multifamily comps, January-September 2026, data as of September 2026. Prices and prices per square foot are medians. The cap rate range is the middle half of sales that reported an actual cap rate. Neighborhoods with fewer than 3 sales in this group are left out, and cap rate ranges need at least 5 reported cap rates. Santa Monica, West Hollywood, and Beverly Hills are separate cities with their own rent control rules, apart from the City of Los Angeles and AB 1482.
Newer Buildings (1978 and Later)
Buildings built in 1978 or later are less common, so only neighborhoods with at least three sales appear here. Where both groups have enough sales, newer buildings generally trade at higher prices per unit than older buildings in the same neighborhood, partly because their rents are less restricted.
| Neighborhood | Median Price Per Unit | Median Price Per SF | Typical Cap Rate Range |
|---|---|---|---|
| Hollywood | $708,9296 sales | $395 | 5.34% to 6.63%5 reported cap rates |
| Santa Monica | $561,0003 sales | $485 | Not enough reported cap rates |
| Mid-Wilshire | $502,5005 sales | $375 | Not enough reported cap rates |
| West Hollywood | $489,7593 sales | $391 | Not enough reported cap rates |
| West LA | $407,14317 sales | $405 | 4.99% to 5.32%10 reported cap rates |
| East Hollywood | $339,2864 sales | $324 | Not enough reported cap rates |
| Van Nuys | $327,5867 sales | $345 | 5.83% to 5.97%5 reported cap rates |
| North Hollywood | $230,0007 sales | $288 | 5.00% to 5.80%6 reported cap rates |
Source: Highlight Multifamily Group analysis of CoStar sold multifamily comps, January-September 2026, data as of September 2026. Prices and prices per square foot are medians. The cap rate range is the middle half of sales that reported an actual cap rate. Neighborhoods with fewer than 3 sales in this group are left out, and cap rate ranges need at least 5 reported cap rates. Santa Monica, West Hollywood, and Beverly Hills are separate cities with their own rent control rules, apart from the City of Los Angeles and AB 1482.
How to Read These Numbers
Price per unit is the quickest way to compare buildings of different sizes, but it ignores how big the units are. Price per square foot adjusts for that. A building of large two-bedroom units and a building of small studios can have the same price per unit and very different values.
Notice how far apart the neighborhoods are. Westside markets such as Santa Monica and Brentwood trade at far higher prices per unit than Koreatown, Westlake, or Pico-Union, and Santa Monica’s cap rates run lower than most of the others. Buyers accept a lower income yield where they expect stronger long-term demand and rent growth.
Cap rates also vary inside a single neighborhood, which is why we show a range, not one number. The range is the middle half of the sales that reported a cap rate, so a few unusually high or low sales do not distort it.
Why Your Building May Sell Above or Below the Range
A neighborhood range is a starting point, not a price for your building. Several things move a building toward the high or low end.
Rents compared with the market. Buildings with rents well below market are valued on the rents in place, with some credit for the upside, which is why we cover the loss to lease in our article on selling with rent-controlled tenants.
Condition and deferred maintenance. Roofs, plumbing, electrical, and required retrofits affect what a buyer will pay.
Unit mix, parking, and lot size. Larger units, on-site parking, and extra land can all add value, and a lot that could support new construction can change the math entirely.
The buyer and the timing. A 1031 exchange buyer on a deadline, a change in interest rates, or a competitive bidding process can all shift the price.
Turn the Range Into a Number for Your Building
For an estimate built on your own rents and expenses, use our free property value calculator, which draws on the same sales data. For a number you can plan around, request a free Broker Opinion of Value. Our article on how buyers value an LA apartment building walks through the math step by step, and each neighborhood page, including Koreatown, Silver Lake, and Santa Monica, has the full local breakdown. You can see them all on our submarkets page.
About This Data
Sales data goes stale, so we refresh it every quarter or two as new sales close. Cap rates in public and commercial databases are sometimes incomplete or estimated, so treat the ranges as a guide, not a guarantee. This article is general information, not an appraisal or investment advice.
Frequently Asked Questions
What is a cap rate on an apartment building, in plain English?
A capitalization rate is a building’s net operating income (NOI) divided by its price. If a building earns $100,000 in NOI after operating expenses and sells for $1,600,000, its cap rate is 6.25%. The lower the cap rate, the more the buyer is paying for each dollar of income.
What cap rate should I expect when I sell my apartment building in LA?
It varies by neighborhood, building age, rent control, condition, and interest rates, which is why one citywide number is not very useful. The tables in this article show the typical range for each neighborhood. Santa Monica’s cap rates run lower than most of the others, and Westside markets trade at far higher prices per unit than Koreatown, Westlake, or Pico-Union.
Where does this sales data come from?
The figures come from sold multifamily properties in Los Angeles County in 2026, taken from CoStar sales data and analyzed by Highlight Multifamily Group. We split the sales by building age and only show a number when enough sales stand behind it.
How is the cap rate range calculated?
The range is the middle half of the sales that reported a cap rate, so a few unusually high or low sales do not distort it. Cap rates in public and commercial databases are sometimes incomplete or estimated, so treat the ranges as a guide, not a guarantee.
Why do newer apartment buildings sell for more per unit than older rent-controlled ones?
Where both groups have enough sales, buildings built in 1978 or later generally trade at higher prices per unit than older buildings in the same neighborhood, partly because their rents are less restricted. Older buildings generally fall under rent stabilization, while newer ones fall under the statewide AB 1482 cap.
Why might my building sell for more or less than other buildings in my neighborhood?
A neighborhood range is a starting point, not a price for your building. Rents compared with the market, condition and deferred maintenance, unit mix, parking and lot size, and the buyer and timing can all move a building toward the high or low end. For a number built on your own rents, use our free calculator or request a Broker Opinion of Value.