Recently, there has been a steady flow of inquiries from investors considering purchases in Buena Park to target rental income. Given the area's characteristics surrounding Knott's Berry Farm, we often hear that rental demand remains consistent, but it is necessary to verify this with actual numbers.

According to Redfin, the median sale price in Buena Park as of June 2026 is $912,004, which is a decrease of 0.87% compared to the previous year. Zillow reports that the average home value is $832,876, reflecting a 2.6% drop over the past year. Both indicators suggest a gradual downward adjustment, indicating a market where buyers may have slightly more room to negotiate compared to a period of rapid price increases.

When looking at the broader Orange County market, active listings have increased to 5,165, reaching a record high for 2026, and the average time to sell has also been lengthening. However, the industry still classifies it as a seller's market, so areas like Buena Park, where prices have slightly adjusted, may present a lower barrier to entry.

Knott's Berry Farm, which opened in 1947, is a 57-acre amusement park operated by Six Flags and has attracted over 4 million visitors annually since 2016. Many seasonal workers and permanent staff needed for park operations seek housing nearby, leading to relatively steady rental demand for homes within walking distance of the park. Recent expansion plans for the park include new entertainment areas, dining spaces, and extended operating hours, suggesting that this trend may continue in the long term.

Buena Park is relatively affordable within Orange County, making it a popular area for those looking for their first investment property. However, a lower barrier to entry does not guarantee profits. The market shows a gap in rental demand between properties within walking distance of Knott's Berry Farm and those that are not, so when narrowing down options, it is advisable to consider the distance to the park and access to public transportation. Many families are also weighing the choice between townhouses and single-family homes. Townhouses may have a lower entry price, but additional monthly HOA fees should be compared alongside total ownership costs with single-family homes.

When evaluating rental yields, it is essential to first calculate the cap rate, which is the net operating income divided by the purchase price. Typically, this ranges from 4% to 10% depending on the market, and the so-called 1% rule, where monthly rent exceeds 1% of the purchase price, is widely used as a simple screening tool indicating potential positive cash flow. Additionally, calculating the cash-on-cash return based on actual invested capital is necessary to understand the true profit structure.

However, given the area's reliance on tourism, it is crucial to also consider the associated risks. Excessive leverage, interest rate fluctuations, property tax reassessments, vacancies, and underestimating maintenance costs are common risk factors in any investment. Particularly, property taxes are often reassessed based on the valuation at the time of purchase, so if the purchase price increases, the tax burden will also rise, which should be factored into calculations.

If you are purchasing investment property for the first time from another state, it is advisable to compare the cost structures between property management companies and direct management in advance. If direct management is challenging from a distance, you should recalculate the net cash flow considering management fees to see the actual yield.

For families planning to live in the property, school districts should also be considered. While resources like GreatSchools or Niche provide ratings, school district boundaries can change frequently, so it is necessary to verify the assigned school for the specific address before purchasing. If coming from another state, it is also beneficial to understand that California's property tax and insurance systems differ from those of previous residences. This article does not constitute investment or legal advice, and it is recommended to consult with a professional before making any contracts.