Renting in Palo Alto

Roughly 45 percent of Palo Alto homes are rented, according to Census Bureau survey data. The rental stock is a mix of everything: garden apartments along El Camino Real, older fourplexes near downtown, newer buildings around California Avenue, single-family homes and a growing number of backyard cottages. Demand is steady because Stanford, the hospitals and a large job base sit inside or right next to the city. The supply of homes is small for the number of people who want to live here.

This guide explains how renting works in Palo Alto in general terms and focuses on the rules the city publishes. Palo Alto layers its own tenant protections on top of California law. Some of them surprise people arriving from other states. We do not quote market rents. Asking prices change month to month and the city does not publish an official figure, so check current listings for the size and area you want. If you are still deciding where to live, our neighborhoods guide compares the parts of town.

How the rental market works

Expect competition for well-located units, especially near downtown, Stanford and the Caltrain stations. A few patterns hold most years:

• Seasonality. Demand rises in late summer ahead of the school and academic year, when Stanford affiliates and families with children move.
• Housing type. Apartments cluster near downtown, along El Camino Real, around California Avenue and in south Palo Alto near San Antonio Road. Much of the rest of the city is single-family homes, some of which are rented.
• Backyard units. Accessory dwelling units have become a real part of the market. City rules require any ADU rental to be for 30 days or more. Our building permits guide explains how owners add them.
• Schools. School assignment follows the address, so families should confirm the elementary and middle school before signing.

The city also runs a Below Market Rate housing program that sets aside some units at restricted rents or prices. Eligibility depends on household income and the waiting list can be long. Details are on the city's housing pages.

Avoiding scams

Expensive markets attract fake listings. See the unit in person or through a verified agent before you send money. Confirm that the person renting it has the right to do so. Never wire a deposit to someone you have not met for a place you have not seen.

The one-year lease rule

Palo Alto requires landlords to offer every tenant and prospective tenant a written lease. Under Palo Alto Municipal Code section 9.68.030, as summarized on the city's tenant resources page, that offer must be for a term of at least one year.

The rule protects tenants from being kept on month-to-month terms they did not choose. It does not force anyone into a long lease. A tenant who prefers a shorter agreement can have one, but only after first rejecting the one-year offer. Keep a copy of the offer and your response.

Deposits and eviction protections

In 2023 the City Council expanded Palo Alto's renter protections. According to the city's August 2023 announcement, three changes took effect on July 20, 2023 and a fourth on September 21, 2023.

Deposits after the 2024 state change

The city's deposit limit is no longer the tightest rule for most renters. Since July 1, 2024, state law (AB 12) caps security deposits at one month's rent for most landlords. Some small landlords who are individuals may still charge two months. When the city and state limits differ, the stricter one applies. For most Palo Alto rentals that means a cap of one month. Where a small landlord qualifies for the state exception, the city's one and a half times cap for unfurnished units still sets the ceiling. Our tenant protections guide explains how the state and city rules fit together.

California's statewide rules still apply alongside the city's. State law caps annual rent increases for many older units and sets notice requirements. Palo Alto has studied local rent stabilization but has not adopted it. In June 2026 the council deferred that question for a year, according to the city's renter protection policy page.

Tenant Relocation Assistance

When a landlord ends a tenancy for a reason that is not the tenant's fault, such as moving in a family member or taking the unit off the market, Palo Alto may require relocation payments. The city calls this Tenant Relocation Assistance. It applies to eligible no-fault just cause evictions defined in Chapter 9.68 of the municipal code.

The rules differ by building size:

• Fewer than 10 units. The payment equals one month's rent in effect when the eviction notice is issued. The landlord pays it within 15 calendar days of the notice or waives the final month's rent in writing.
• 10 or more units. The payment is a set amount by unit size that the city updates every July 1. Half is paid with the notice and half when the tenant moves out.

The city's fiscal year 2026 to 2027 guidance sheet lists these amounts for properties with 10 or more units, valid July 1, 2026 through June 30, 2027:

An additional $3,669.74 applies if the unit houses a low-income household, someone 60 or older, a person with a disability or a minor. To claim it, the tenant must give the landlord written notice with supporting evidence within 15 days of receiving the eviction notice. The city updates these figures every year, so always use the current sheet.

The Rental Registry

Palo Alto's Rental Registry Program collects basic information about rental housing so the city can understand the local market. Under Chapter 9.65 of the municipal code, the city's registry page says residential properties with three or more units under one ownership must register every year.

• Current period. Registration for Program Year 3, fiscal year 2026 to 2027, opened October 1, 2026 and runs through January 19, 2027.
• Fee. $40 per unit. Owner-occupied units and fully affordable properties can get fee exemptions. The council waived fees in the first program year.
• Smaller properties. Properties with two or fewer units do not have to register this year. In June 2026 the council put off a decision on adding them for a year.
• Late registration. Owners who miss the deadline receive an administrative citation with a penalty fee.
• Lookup. Renters and the public can use the online portal to check whether a unit is registered.

Owners with questions can email [email protected]. The registry's technical help desk is (650) 459-0138, weekday mornings from 8 a.m. to noon.

Where to get help

Palo Alto requires landlords and tenants to take part in a discussion for many kinds of disputes before things escalate. The city lists these resources on its tenant page:

• Palo Alto Mediation Program. Free mediation for anyone who lives, works, does business or owns property in Palo Alto. Call (650) 856-4062 or email [email protected].
• Project Sentinel. Help with repairs, deposits, privacy and fair housing questions.
• The Palo Alto Tenant Guide. A city booklet published in 2024 in English, Spanish and Simplified Chinese.
• Code enforcement. Report unsafe conditions through PaloAlto311, the city's service request system.

For questions about relocation payments or the registry, contact Planning and Development Services. The city also offers information and referral through its Human Services division.

A renter's checklist

1. Confirm the school, parking district and garbage day for the address.
2. Ask for the one-year lease offer in writing.
3. Check the deposit. For most rentals it can be no more than one month's rent.
4. Photograph the unit at move-in and keep the images with your lease.
5. Open your own city utility account. Landlords cannot do it for you.
6. If your building has three or more units, look it up in the rental registry.
7. Save the mediation program's number before you need it.

Tenants open their own accounts with City of Palo Alto Utilities. Our utilities guide explains how. If your block has a two-hour limit, read the parking permits guide before you bring a car. For the buying side of the market, see Palo Alto real estate and housing.

Frequently asked questions