The Neighborhood That Isn't Technically in San Jose
Burbank carries a San Jose address and a San Jose ZIP code (95128). But legally, it isn't part of the city.
Burbank is an unincorporated community in Santa Clara County — completely surrounded by San Jose, yet outside its jurisdiction. That distinction might seem like a technicality. For multifamily investors, it's anything but.
Why Burbank Is Exempt from the San Jose ARO
San José's Apartment Rent Ordinance (ARO), adopted in 1979, caps annual rent increases at 5% for covered units. It applies to apartments with three or more units built before September 7, 1979.
The ordinance explicitly exempts properties in unincorporated areas of San José — which is exactly what Burbank is. The San José Tenant Protection Ordinance (TPO), which governs just-cause evictions, also stops at the city line.
The result: multifamily properties in Burbank operate under a fundamentally different set of rules than nearly identical properties located just blocks away inside San Jose proper.
What Protections Do Tenants Still Have?
Exempt from local rent control does not mean exempt from all protections. Burbank tenants are still covered by California AB 1482 — the Tenant Protection Act of 2019, which provides:
- An annual rent increase cap of 5% + local CPI (max 10%)
- Just-cause eviction protections for tenants with 12+ months of tenancy
AB 1482 has its own exemptions — including single-family homes, condos, and units built within the last 15 years — but for most multifamily properties in Burbank, it serves as the applicable statewide backstop. Consult a licensed real estate attorney to confirm how AB 1482 applies to a specific property.
What This Means for Multifamily Investors
This is where the ARO exemption moves from a legal footnote to a real investment consideration.
Greater rent flexibility. Without the ARO, owners can price units to market on vacancy resets and adjust rents with more flexibility than ARO-covered properties allow — subject to AB 1482's statewide caps where applicable. For investors focused on NOI growth, that flexibility is meaningful.
Stronger pro forma potential. ARO-covered properties carry built-in rent growth constraints that investors must account for in their underwriting. Burbank properties, by contrast, allow for more realistic market-rate projections — which can translate directly into stronger cap rates and better long-term returns.
Different compliance requirements. Burbank properties are governed by Santa Clara County, not the City of San Jose — different offices, different processes, different timelines. Owners are not subject to San Jose's annual ARO registration requirements.
Due diligence matters more here. Because Burbank carries a San Jose mailing address, many buyers — and some agents — assume it falls under San Jose's regulatory framework. That assumption leads to mispriced deals, incorrect pro formas, and compliance errors post-close. Confirming jurisdictional status before underwriting is non-negotiable.
The 1031 exchange angle. Investors currently holding ARO-covered properties in San Jose should take note. Exchanging into a Burbank asset — or another rent control exempt property — can meaningfully change the operating picture going forward. The R&Z Group works with sellers navigating exactly this type of strategic move.
Working With a Broker Who Knows the Difference
Details like jurisdictional boundaries, rent ordinance exemptions, and county-level compliance don't show up on a listing flyer — but they directly affect what a property is worth and how it performs. The R&Z Group specializes in multifamily investment throughout the Bay Area, from duplexes to 100+ unit apartment communities, with a deep understanding of the local regulatory landscape. Whether you're evaluating an acquisition in Burbank, considering a 1031 exchange out of an ARO-covered property, or simply pressure-testing your current portfolio's value, we bring the market knowledge and transactional track record to help you make the right call.
📸 [PHOTO: Ray and Tony headshot or R&Z Group branded team photo.]
FAQ
Is Burbank covered by San Jose rent control? No. Burbank is unincorporated Santa Clara County and is explicitly exempt from the San José Apartment Rent Ordinance. Most multifamily units in Burbank are still subject to California AB 1482 statewide protections.
What is the difference between an unincorporated community and a city in California? An unincorporated community is not governed by a city — it falls under county jurisdiction. In Burbank's case, Santa Clara County controls land use, building permits, code enforcement, and tenant protection regulations — not the City of San Jose.
Does AB 1482 apply to properties in Burbank? For most multifamily rental properties in Burbank, yes. AB 1482 caps annual rent increases at 5% + local CPI (max 10%) and provides just-cause eviction protections for tenants with 12 or more months of tenancy. The law has its own exemptions, including units built within the last 15 years. Consult a licensed attorney to confirm how AB 1482 applies to a specific property.
Is Santa Clara County adding new rent protections for Burbank? Yes. The County has been working to expand tenant protections in unincorporated areas, and in March 2026 adopted Ordinance No. NS-300.1007. Investors should monitor plandev.santaclaracounty.gov/tpo and consult legal counsel for the most current details.
How does Burbank's rent control exemption affect multifamily investment value? Properties exempt from the San Jose ARO offer investors more operational flexibility — particularly around market-rate rent adjustments on vacancy. This can directly affect NOI, cap rate, and long-term portfolio performance. A qualified multifamily broker can help you understand how this factors into underwriting a specific property.
What should I look for when buying a multifamily property in Burbank? Confirm the parcel's jurisdictional status with Santa Clara County before underwriting. Verify whether AB 1482 applies to the specific units. Review any pending county ordinance updates. And work with a broker who understands the difference between city and county governance in the Bay Area multifamily market.
If you're looking to sell a multifamily property in San Jose, Oakland, Redwood City, San Mateo, Burlingame, Daly City, Hayward, Palo Alto, Menlo Park, Santa Clara, Sunnyvale, Berkeley, or Concord — or anywhere across the Bay Area — The R&Z Group is the multifamily real estate broker built for investors who expect results. From maximizing your sale price to navigating a 1031 exchange, we bring local expertise, financial precision, and a proven track record to every transaction. Contact us today.
Contact The R&Z Group:
Ray Rodriguez | (650) 405-0743 | Lic# 01999734
Tony Zizzo | (650) 770-8356 | Lic# 01962093
