Invest In Apartment Buildings In Highland, CA

What Drives Rental Demand In Highland

Highland's apartment demand starts with its 5,845 renter households, 35.9% of all occupied homes in the city (U.S. Census ACS 2020–2024). Renter households rose 9.4% over five years while population grew 3%. More of Highland's residents are renting than before.

Median household income in Highland, CA is $77,120, up 18.9% over five years. Resident employment rose 6.3% and the unemployment rate was 6.2% in the latest survey. Rent has risen faster than income (50.4% versus 18.9%), so more tenants are stretched. Well-run older buildings that rent below new construction tend to hold up best in that setting.

Renters are a large minority in Highland. Buildings close to employers and main roads usually see the steadiest demand.

The Supply Picture In Highland

Median gross rent in Highland, CA is $1,629 a month, up 50.4% from $1,083 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's fast growth. Part of it reflects the national rent run-up of 2021 and 2022, and some of it can fade when new buildings open nearby, so we don't project the same pace forward.

Rental vacancy is 2%, which is tight. Vacant units in Highland tend to lease quickly. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 67.4% of renters spend 30% or more of their income on housing. That limits how hard rents can be pushed, so renewals and retention matter more than big increases.

About 12.9% of homes in Highland are in buildings with 5 or more units, roughly 2,166 homes. It grew 6.5% over five years, a moderate amount of new supply. The median home was built in 1983, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation. For comparison, HUD's fiscal year 2027 Fair Market Rent for a two-bedroom unit in the Riverside-San Bernardino-Ontario, CA MSA is $2,103 a month.

Where Highland Stands Among Its Peers

We track 276 California cities. Highland places 230th for median gross rent, 180th for renter share and 6th for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. Compared with the 2015–2019 survey, Highland now has about 1,626 more residents, 502 more renter households and 132 more homes in buildings with 5 or more units. Renter households grew by about 3.8 for every new home in a larger apartment building. Not every renter lives in an apartment, but demand has clearly kept ahead of new multifamily supply.

Highland Compared With San Bernardino County

Highland's median gross rent of $1,629 is below the California median of $2,036, and its renter share is 35.9% compared with 44.1% statewide.

Highland Rent Affordability In Dollars

The median rent in Highland works out to $19,548 a year, about 25.3% of the median household income of $77,120. Under the common 30% guideline, a household needs about $65,200 a year to cover that rent comfortably. That's close to the California figure of 24.6%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $546 a month ($6,552 a year), while median household income rose $12,259 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal. HUD's FY2027 Fair Market Rent for a two-bedroom unit, $2,103, is 29.1% above the median gross rent for all unit sizes. That gap matters for buildings that accept Housing Choice Vouchers, since local housing authorities base voucher payment standards on it.

Highland Apartment Market Key Facts

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Highland, CA has 56,675 residents, up 3% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Highland, CA is $77,120, up 18.9% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Highland, CA is $1,629 a month, up 50.4% over five years (U.S. Census ACS 2020–2024).
• 35.9% of households in Highland, CA rent, about 5,845 renter households (U.S. Census ACS 2020–2024).
• 12.9% of homes in Highland, CA are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Highland, CA is 2%, and 67.4% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Highland, CA was built in 1983 (U.S. Census ACS 2020–2024).

What We Look For In A Highland Apartment Building

We look at buildings with 5 or more units in Highland, from small walk-ups to larger garden-style communities, in stabilized or value-add condition. We compare in-place rents with nearby buildings, inspect roofs, plumbing and HVAC, and ask whether better management or targeted renovation can close the gap with the market.

Property taxes are a big line item for any California apartment building. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. California caps annual rent increases on most apartments older than 15 years under the Tenant Protection Act (AB 1482), and cities such as Los Angeles, San Francisco and Oakland have stricter local rent control. Our rent-control guides explain how these rules work. Insurance quotes in California reflect wildfire risk, so we get a quote before we make an offer.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Due Diligence For Apartment Syndications In Highland

The data on this page turns into a short checklist for evaluating an apartment syndication in Highland.

• What vacancy does the plan assume? Rental vacancy in Highland is 2%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 50.4% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• How big is the repair reserve? The median home in Highland was built in 1983, and even newer buildings need money set aside for roofs, HVAC and appliances.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Highland Apartment Syndication Works

Two groups make an apartment syndication work. The sponsor, or general partner, handles the deal: finding the building, financing it and running the business plan. The limited partners are passive investors who contribute capital and share in the property's results under the offering's terms.

Expect your money to be tied up for years, with no easy way to sell your share early, and remember that any investment can lose money. Most deals are open only to accredited investors under Rule 506(b) or 506(c). See investing with Skyline Capital for how we work with limited partners.

Getting Started

The first step is the investor network. It's free, and it's how we share market notes and get to know investors. If we buy in Highland or elsewhere and you're eligible, we'll reach out privately with the details.