Hollywood is a deeply RSO encumbered market. The LA City Rent Stabilization Ordinance covers virtually all pre October 1978 multifamily buildings, which is the majority of Hollywood's small asset inventory given the dominant 1920s to 1950s Spanish revival and Streamline Moderne building stock. For July 1 2025 through June 30 2026, the RSO allows a 3 percent flat annual increase, down from previous years that included 1 percent utility adders since eliminated on February 2 2026.
Lee + Associates put Hollywood's average cap rate at 5.4 percent and average price per unit at $275,000 in their Mid Year 2025 report. Matthews' Q3 2025 Hollywood submarket report showed pricing near $348,000 per unit with a 5.2 percent cap rate. Vacancy ticked from 5.0 to 5.9 percent over the past year per Matthews, reflecting new supply competing at the Class A end of the market.
Investors in Hollywood small assets should factor Measure ULA: the city transfer tax applies at 4 percent on sales above $5.4M (adjusted for the July 2026 closing date threshold). For 10 to 20 unit buildings, ULA is a real cost. Below 5.4M, the tax does not trigger, which covers most 2 to 10 unit Hollywood transactions.
Hollywood is the architectural prize on our list. A 1929 Spanish revival fourplex with original tile work, ornate ironwork, and a courtyard fountain is a generational asset. The RSO ceiling and ULA threshold both shape the math, but turnover units in Hollywood reset to market rents that comfortably support the basis.
