Rents in San Luis Obispo kept sliding. Typical rent in the City was $2,968 a month in September, according to Zillow’s rent index. That’s the sixth monthly decline in a row and $145 (4.7%) below the March peak of $3,113.
Earlier this month we said the September figure would show whether rents found a floor. They didn’t, at least not yet.
A note on the numbers
Zillow revises its whole rent history each month as more listings come in. In this month’s release, August rent is now $2,989 (first reported as $2,973) and the March peak is $3,113 (first reported as $3,096). The direction hasn’t changed: rents have fallen every month since March.
Still bigger than the usual summer dip
Rents here usually peak in late winter or spring and ease through summer. Here’s the drop from the spring peak to September in each year we track, using Zillow’s current figures:
| Year | Spring peak | September | Change |
|---|---|---|---|
| 2024 | $2,838 (Feb.) | $2,824 | −$14 (−0.5%) |
| 2025 | $2,984 (Mar.) | $2,938 | −$46 (−1.5%) |
| 2026 | $3,113 (Mar.) | $2,968 | −$145 (−4.7%) |
Source for every figure in the table: Zillow Observed Rent Index, City of San Luis Obispo.
Year-over-year growth is close to zero
- March 2026: up 4.3% from March 2025 ($3,113 vs. $2,984)
- September 2026: up 1.0% from September 2025 ($2,968 vs. $2,938)
One more month like this one would put SLO rents below year-ago levels for the first time in the data we track, which starts in 2023.
Home values went the other way
The same Zillow release shows the typical home value in the City rising to $1,081,221 in September, up 0.5% from August and 2.0% from a year ago. Countywide, the typical value rose to $897,661, up 2.0% from a year ago. Both are the highest in the three years we track.
So owning got more expensive while renting got a little cheaper. With the 30-year mortgage rate at 7.40% (Freddie Mac, week of Oct. 15), the payment on the median SLO County listing is far above typical rent; our market page runs the current numbers.
What to watch
Last year, rents bottomed in October and climbed through the winter. The October figure, due from Zillow in mid-November, will show whether that pattern holds or the slide continues.
We update rents and home values monthly on the market dashboard.
Sources: Zillow Observed Rent Index (ZORI), City of San Luis Obispo, all rental types; Zillow Home Value Index (ZHVI), City and County of San Luis Obispo, all homes; Freddie Mac 30-year fixed rate via FRED.