San Rafael – Marin County apartment investors continued for the second year to drive down prices with aggressive offers averaging 5.52% CAP rates. That put the median gross rent multiplier at 11.33. This is down since 2023 peak prices at least 2 points.
Sales Up
At the same time gross sales were up 20% from 2024 and closed out in 2025 at $276 million in apartment building sales. The average price per unit con- tinued to drop from last year and is now at $354 thousand per unit.
The sale locations were widespread throughout the county, with South- ern Marin properties dominating the sale numbers.
GRM’S Down
Gross rent multipli- ers for buildings with 5 or more units sold from 8.32 to over 15 times gross income depending on location and amenities. Still, these numbers are significantly down from the highs in 2023 sales.
Normally, Southern Marin GRM s are from 16-18 and this year I sold a 9 unit, fully rented apart- ment property in Mill Valley for a 10.5GRM. The property was valued in 2023 at $4.5 mil- lion and sold in late 2025 for $3,350,000.
Financing
The stubbornly high apartment financing rates, at over 6% and with low loan to values at up to 50% are keeping many apartment investors on the sidelines.
But these deals will not last long, and the most aggressive investors are finding ways to finance their purchase, either with private banks in San Francisco or local portfolio lenders that know the stable Marin County apartment rental market.
Today’s Marin Rental Market
The current vacancy rate is 4.3%, down from 5% in 2023. The advertised rents for Marin cities is below and many Cities in Southern Marin have a very tight rental market.
Advertised Rents Marin
| Sausalito | 1/1 | $2985—$4200 |
| 2/1 | $2771—$4795 | |
| Mill Valley | 1/1 | $2597—$4197 |
| 2/1 | $3148—$4950 | |
| Tiburon | 1/1 | $2430—$3095 |
| 2/1 | $3995—$5000 | |
| Corte Madera | 1/1 | $3,000 |
| 2/1 | No 2 beds | |
| Greenbrae | 1/1 | No 1 beds |
| 2/1 | $2900—$3495 | |
| San Rafael | 1/1 | $1975—$3400 |
| 2/1 | $2950—$3750 | |
| San Anselmo | 1/1 | $2400—$2625 |
| 2/1 | $3662 | |
| Fairfax | 1/1 | $2100—$3250 |
| 2/1 | $2950—$2975 | |
| Novato | 1/1 | $2099—$2435 |
| 2/1 | $2795—$3575 |
Editor’s Letter
Winter 2025 Marin Apartment Market
San Rafael- Marin landlords were faced with multiple management problems last year that included higher vacancies in the winter months, sky rocketing insurance prices coupled with thousands of apartment policy cancellations and the threat of even stricter statewide rent control restrictions.
The California legislature introduced two different measures, AB1157 and AB1482, to cap rent increases at 2% statewide with the CPI capped at 1.5%. This would be a catastrophic change from the current cap of 5% + CPI cap of 5%.
Fortunately, the California Apartment Association and landlords pushed back hard, and the proposed legislation is now tabled for at least 24 months. But waiting in the wings is yet another rent control bill that not only lowers the caps on rent but also would include cur- rently exempted rentals-single family homes, condos, new construction under 15 years old and owner occupied duplexes.
Standby for more news on that throughout this year.
The second big issue for California landlords is the continuing insur- ance cancellations on apartment properties and the exorbitant costs of replacement insurance. You are not alone-it’s happening to a huge number of apartment investors as insurance companies react to contin- uing wildfire claims around the state. The insurance issue has impacted apartment sales and is certainly an issue when price negotiations come up during the transaction.
The final issue concerning landlords are rental vacancies and high rent levels that tenants are dealing with here in the North Bay. Last year rents remained flat and vacant apartments took longer to fill. This year inventory has tightened; the vacancy rate is now down to 4.1% in Mar- in and we should see some good opportunity to raise rents to cover the climbing costs of apartment ownership.
Newly hired tech workers are moving into Marin now as the tech com- panies add more AI related jobs.
Feel free to contact me directly at 415-302-7730 or email me at katherine@khiggins.com to discuss any of your real estate needs.
Marin County Apartment Market Trends for Year End 2025
Total Marin County apartment market sales increased by 20% last year from $221 million in 2024 to $276 million in 2025. One sale alone in Larkspur accounted for $170 million in a large, newer complex with 342 units and multiple amenities located at 700 Lincoln Village Circle across from the Larkspur Ferry and Country Mart Shopping Center.
The median sales price per unit dropped again from 2024-2025 from $358 thousand per unit to $354 thousand per unit. Significantly, the median closed sales CAP rate was 5.52%. One 9-unit sale in Mill Valley sold at a 6.5% CAP on current income. The property had multiple deferred structural issues but was fully rented at close of escrow.
With the average purchase loan interest rate at 6% the loan-to-value ratios crept up to around 60%, but it was not enough to attract many investors. As a result, at least half of the listed prop- erty inventory sat on the market and did not attract a buyer.
This year is a perfect time for bargain hunting apartment investors to acquire quality multifamily properties in Marin County. Many long-time apartment owners are retiring after 30-50 years of ownership and their properties are in the most prestigious locations in the County.
Marin County Apartment Sales 2025*
