Investing in Fremont, Newark, Union City & Hayward Rentals
By Bilal Salimi, Broker DRE# 01480904 · NMLS# 300923 · Checked October 28, 2026
DSCR loans: qualify on the property's rent
Reality check: the calculator opens with a home near each city's typical price and the city's typical rent. At those numbers, rent covers well under the full financed payment, a DSCR far below 1.00. Bay Area investors who make the numbers work usually buy below the typical price (condos, townhomes, 2–4 units), put more money down, add an ADU, rent by the room where allowed, or plan around appreciation rather than monthly cash flow. Try your own numbers above.
Get today's DSCR pricing Owner-occupied payment calculatorEstimates only, not a loan offer. Rate is an example. Typical rents are Zillow's observed rent index for September 2026 for the whole city, not a rent estimate for any specific home; DSCR lenders use an appraiser's rent schedule. SI MTG, the mortgage division of Salimi Investments, NMLS# 300923, is a broker, not a lender.
Investor loan programs at a glance
Published program terms, not rates. Rates change daily and depend on your DSCR, credit, loan size, property type and prepayment choice, so request today's pricing for your scenario.
| Program | Qualifies on | Typical down payment | Good for |
|---|---|---|---|
| DSCR | Property rent ÷ PITIA; no personal income documents | About 20–25%+ on purchases; more for lower credit or larger loans | Self-employed investors, LLC vesting, growing portfolios, short-term rentals with history (where legal) |
| Conventional investment (Fannie Mae / Freddie Mac) | Your income, debts and credit | 15% for 1 unit, 25% for 2–4 units (Fannie Mae maximums: 85% / 75% loan-to-value) | Investors with documentable W-2 or tax-return income; often the lowest rates |
| Bank statement | 12–24 months of business or personal bank deposits | Varies by lender; larger for investment properties | Self-employed borrowers whose tax returns understate income (for a home you'll live in, see self-employed and Non-QM loans) |
| Owner-occupied 2–4 units ("house hacking") | Your income, plus a share of the other units' rent | FHA from 3.5%; conventional options available | Living in one unit and renting the others; Alameda County FHA limits run up to $2,402,625 for 4 units |
| Cash-out refinance | DSCR or income | Conventional investment cash-out up to 75% loan-to-value (1 unit), 70% (2–4 units) | Pulling equity for the next purchase or an ADU |
Conventional limits per the Fannie Mae Eligibility Matrix (effective April 1, 2026). DSCR and bank-statement terms vary by lender; figures are typical published ranges. Short-term rental income is subject to local law (see below).
Rents and Section 8 payment standards
| City | Typical rent, Sep 2026 | vs. Sep 2025 |
|---|---|---|
| Newark | $3,670 | +4.7% |
| Fremont | $3,388 | +6.0% |
| Union City | $2,913 | +7.8% |
| Hayward | $2,652 | +3.9% |
Zillow Observed Rent Index (all home types), September 2026.
Section 8 voucher payment standards by bedroom (HACA, effective Jan 1, 2026)
| Area | Studio | 1 BR | 2 BR | 3 BR | 4 BR | 5 BR |
|---|---|---|---|---|---|---|
| Fremont, Newark, Union City | $1,935 | $2,233 | $2,761 | $3,609 | $4,217 | $4,850 |
| Hayward | $1,933 | $2,153 | $2,641 | $3,494 | $3,988 | $4,588 |
- The payment standard is not a guaranteed rent. HACA must also find the rent reasonable compared with similar unassisted units, and at move-in the tenant's share can't exceed 40% of their adjusted monthly income.
- The home must pass a housing authority inspection before the lease starts. The federal NSPIRE standard replaces the older HQS standard for vouchers by February 1, 2027.
- You can't refuse voucher holders. California treats Section 8 and other housing assistance as a protected source of income; "no Section 8" ads are illegal.
- HUD's Fair Market Rents for the Oakland-Fremont area for FY2027 (from October 2026) are $2,088 studio, $2,290 1 BR, $2,805 2 BR, $3,592 3 BR and $4,250 4 BR, slightly lower than FY2026.
Short-term rentals (under 30 days) and occupancy tax
| City | Short-term rental rules | TOT rate | Who remits |
|---|---|---|---|
| Fremont | Only in the host's primary residence, with a City STR permit renewed yearly. One STR per host, 2 guests per bedroom, 24/7 local contact. ADUs and junior ADUs may not be used as STRs. | 10% | Host registers and remits to the City |
| Newark | No city short-term rental ordinance found; confirm zoning and business license with Planning, (510) 578-4330, before operating. | 14% (since Jan 1, 2025) | Likely the host; confirm with Newark Finance |
| Union City | Restrictive zoning; the City publishes a short-term rental application. A TOT registration certificate and business license are required. | 13.86% (FY 2025-26) | Airbnb collects for Airbnb bookings; host must still register |
| Hayward | Not allowed. Every rental unit must be rented for more than 30 days. Penalties run $1,500, $3,000 and $5,000 for repeat violations. | 18% total for hotels (14% + 2% excise since Feb 1, 2026, plus 2% Emergency Services tax) | Not applicable: STRs prohibited |
State ADU rules also require ADU rentals to run longer than 30 days. Check the city and your HOA before buying a property for short-term rental income; DSCR lenders that count Airbnb income typically need a rental history or an appraiser's short-term rent analysis.
Landlord rules by city
| City | Rent increases & evictions | Registration / fees |
|---|---|---|
| Fremont | Rent review for increases over 5% in 12 months (non-binding). State law covers just cause. | Program fee $23/unit, for owners of 5+ Fremont units |
| Newark | Ordinance 561 (May 1, 2026): review/mediation of increases over 5%; just cause for all units; 2 months' rent relocation for no-fault evictions. | Rental registration required (by July 1, 2026) |
| Union City | Mediation of increases over 7%; local just cause; landlord must have a registered rental unit to terminate a tenancy. | Registration plus business license |
| Hayward | 5% annual cap on covered units (mostly multi-unit, built before July 1, 1979); just cause for most units. | Rental inspection program $125/yr per 1–4 unit parcel, $35/unit for 5+ |
Statewide rules investors often miss
- Rent cap (AB 1482): 8.8% for August 1, 2026 to July 31, 2027 in the SF-Oakland-Hayward area, for covered units. Single-family homes and condos owned by individuals can be exempt only if the lease contains the exact statutory exemption notice.
- Security deposit: one month's rent since July 1, 2024 (up to two months for small landlords owning no more than two rental properties with four or fewer units in total).
- Application screening fees are capped by state law (adjusted yearly for inflation) and limited to actual costs.
- Required lease disclosures include lead paint (homes built before 1978), bed bugs, flood zone status, known mold, and the Megan's Law database notice; working smoke alarms and carbon monoxide devices are required.
Condo and HOA rental limits
- Since 2021, a California HOA can't ban renting, and can't cap rentals below 25% of units, but it can ban rentals of 30 days or less.
- If your HOA adds a rental ban after you buy, you're generally not bound by it.
- For financing, Fannie Mae won't lend in condo projects where one entity owns more than 20% of units (in projects of 21+ units), or projects run like hotels. Ask for the HOA's investor concentration before you make an offer.
Depreciation, bonus depreciation and cost segregation
Cost segregation estimator (illustration only; your study and CPA set the real numbers)
Assumes a full year and ignores mid-month conventions; real first-year amounts are lower. Rental losses are usually passive: they offset passive income only, unless you qualify as a real estate professional (750+ hours and more than half your working time), use the $25,000 allowance (phased out between $100,000 and $150,000 of income), or run a short-term rental with average stays of 7 days or less and materially participate. Accelerated depreciation is recaptured when you sell, unless deferred through a 1031 exchange.
- Bought in an earlier year? A "look-back" study can catch up the missed depreciation in the current year by filing Form 3115 (a change in accounting method), without amending old returns.
- Who does the study: the IRS's cost segregation guide considers detailed engineering-based studies the most accurate.
- Section 179 (now up to $2.5 million) generally doesn't apply to residential rental property.
- Property acquired before January 20, 2025 under a binding contract stays on the old schedule: 40% bonus if placed in service in 2025.
1031 exchanges: trade up and defer the tax
Deadlines are calendar days and are not extended for weekends or holidays. The 180-day deadline is cut short by your tax return due date unless you file an extension. Confirm with your qualified intermediary and CPA.
Find replacement property- Identification rules: up to 3 properties of any value, or any number totaling no more than 200% of what you sold, or more than that only if you buy at least 95% of the value identified.
- To defer all of the tax, buy property of equal or greater value, reinvest all your net equity, and replace any loan you paid off with new debt or cash. Cash or debt relief you keep ("boot") is taxable.
- Flips, your personal home, and US-for-foreign swaps don't qualify. Related-party exchanges must be held at least 2 years.
- Options: reverse and build-to-suit exchanges (up to 180 days of "parking"), Delaware Statutory Trusts (passive ownership as replacement property), and combining a 1031 with the home-sale exclusion for a former home turned rental.
- California: sell California property and buy out of state, and you must file FTB Form 3840 every year until the deferred California gain is taxed. California's 3⅓% withholding at sale doesn't apply to a properly structured exchange.
How I help investors
I find and analyze rentals, check each city's and HOA's rules before you buy, and arrange DSCR, bank-statement and conventional investment loans through SI MTG. For 1031 exchanges, I help you line up replacement property within your 45-day window, residential through Visionary Estates and commercial through Salimi Investments.
Book a free investor consultation Download the Investor Guide (PDF)Investor FAQ
What is a DSCR loan?
A DSCR (debt service coverage ratio) loan qualifies an investment property on its rent instead of your personal income: DSCR = monthly rent ÷ monthly principal, interest, taxes, insurance and HOA dues. A ratio of 1.00 or higher means the rent covers the payment. Terms vary by lender; down payments are typically 20% or more, and the loan can usually close in an LLC.
Can I do short-term rentals (Airbnb) in Fremont, Newark, Union City or Hayward?
Hayward does not allow rentals under 30 days. Fremont allows short-term rentals only in the host's primary residence with a city permit. Union City has restrictive zoning and requires registration, and Newark has no specific ordinance, so confirm with the city before operating. HOAs may also ban rentals of 30 days or less.
What is the transient occupancy tax in Newark, CA?
14% of the room rent, effective January 1, 2025 (Measure LL raised it from 10%). Fremont charges 10%, Union City 13.86% (its posted FY 2025-26 rate), and Hayward hotels 18% in total.
How much can a California landlord charge for a security deposit?
Since July 1, 2024, generally one month's rent. A natural person, or an LLC whose members are all natural persons, that owns no more than two residential rental properties with no more than four units offered for rent in total can charge up to two months, except to service members.
Can a landlord refuse Section 8 tenants in California?
No. California's fair housing law treats Section 8 and other housing vouchers as a protected source of income, so landlords can't refuse voucher holders or advertise "no Section 8."
What does the One Big Beautiful Bill Act change for rental property owners?
It made 100% bonus depreciation permanent for qualified property with a recovery period of 20 years or less acquired after January 19, 2025. The rental building itself (27.5 years) doesn't qualify, but 5-, 7- and 15-year components identified in a cost segregation study can. California does not follow federal bonus depreciation.
What are the 1031 exchange deadlines?
You must identify replacement property in writing within 45 days of selling, and close on it within 180 days or by your tax return due date (with extensions), whichever comes first. A qualified intermediary must hold the sale proceeds.
General information checked on October 28, 2026, not legal or tax advice. Tax rules, local ordinances, fees and lender terms change; consult a CPA, a qualified intermediary and the city before acting. Loans arranged through SI MTG, the mortgage division of Salimi Investments, NMLS# 300923, a mortgage broker, not a lender; all loans subject to approval. Bilal Salimi, Broker DRE# 01480904 · CA Insurance Lic. #0F85254 · (510) 786-8739