3 Cities in Orange County Prime for Rental Properties

If you’re thinking about buying or converting a property to generate rental income, Orange County offers several great opportunities. Whether you’re an experienced investor or a homeowner adding an ADU, knowing which cities attract reliable tenants and sustain strong rental demand can make all the difference. Let’s look at three cities that stand out for their rental potential right now.

Costa Mesa – Central Location and Strong Tenant Demand

Costa Mesa continues to be one of the most desirable rental markets in Orange County. Its proximity to the beach, shopping centers like South Coast Plaza, and major employers in Irvine and Newport Beach makes it a magnet for professionals and young families.

The city’s mix of older single-family homes and newer multi-unit developments creates a range of investment options. Rental properties near The Lab, The Camp, and the 17th Street corridor often lease quickly and at premium rates. For ADU owners, the demand for smaller, modern units remains high—particularly among tenants looking for affordable alternatives close to coastal amenities. You can learn more about this in our post on what utilities should be shared with your ADU.

Fullerton – A College Town with Consistent Returns

Home to California State University, Fullerton offers a steady stream of tenants year-round. Investors here benefit from consistent demand from students, staff, and families drawn to the area’s schools and suburban feel.

Neighborhoods near downtown Fullerton, especially those close to transit lines, are ideal for rental properties. The city’s historic homes and mid-century properties often include large lots, giving owners the flexibility to add ADUs or renovate for multi-unit potential. Rents have grown steadily in recent years, supported by the city’s vibrant nightlife, parks, and commuter access to both Los Angeles and central Orange County. Before expanding your portfolio, check out our insights on the top 3 rental property expenses that aren’t maintenance.

Huntington Beach – High Rent Potential Near the Coast

Known for its surf culture and beautiful coastline, Huntington Beach continues to attract high-income tenants seeking coastal living. While purchase prices here can be higher, rental income and appreciation potential often justify the investment.

Long-term rentals and ADUs are especially in demand in the quieter inland neighborhoods like Huntington Harbour, Adams, and Goldenwest. These areas offer easy access to the beach without the constant tourist activity. With steady population growth and limited new rental inventory, vacancy rates remain low and rents remain among the strongest in the region. Property owners here often benefit from hiring professional help — see our blog on you should have a property manager for one rental property for perspective.

Final Thoughts

Each of these cities offers unique advantages depending on your investment goals. Costa Mesa brings convenience and modern appeal, Fullerton provides consistency and affordability, and Huntington Beach delivers premium rent potential along the coast.

If you’re considering adding a rental property or ADU in Orange County, choosing the right location is the first step toward long-term success.

At Beach Cities Management, we specialize in helping property owners maximize their returns while minimizing stress. If you’re ready to explore your options, call us today at (562) 888-0247 or complete our Owner Application online to get started.