Dreaming of a peaceful retreat in the Ojai Valley, but not sure what it takes to buy a second home there? You are not alone. Ojai’s arts scene, small‑town pace and valley setting make it a favorite for weekend escapes. In this guide, you will learn how the market works, what you can and cannot do with short‑term rentals, how financing and taxes differ for second homes, and what to check before you write an offer. Let’s dive in.
Why Ojai draws second‑home buyers
Ojai blends privacy, art and wellness in a compact, scenic valley. Visitor interest surges around signature cultural moments like the early‑June Ojai Music Festival, which adds energy to town and attention to properties marketed as retreats.
The climate supports year‑round enjoyment. Summers are warm and dry, most rainfall arrives October through April, and clear evenings often showcase the famous “pink moment” on the hills. That rhythm shapes how you use a second home through the seasons.
Location also matters. Compared with coastal Ventura County cities, Ojai is more valley and hillside than beachfront, with a lifestyle focused on privacy, gardens and views.
Market snapshot and timing
- Pricing varies by neighborhood, acreage and condition. Recent aggregator snapshots show a median listing price near about 1.75 million and a broader value index around 1.10 million. Different data sources use different methods, so use local comps for any address.
- Inventory is limited compared with larger cities. Desirable homes can move quickly, so pre‑approval and readiness help you act with confidence.
- Seasonality is real. Visitor interest spikes in spring, during festival weekends, and around holiday periods. If you plan occasional renting in permitted areas, those windows can influence pricing and demand.
What homes you will see
Property styles
Expect a mix of historic cottages and bungalows, Spanish or Mediterranean ranch homes, mid‑century ranches, contemporary hillside builds, and small estates on half‑acre to multi‑acre parcels. Many properties highlight patios, gardens and mountain views. HOA communities are less common than in suburban areas, so parcels often feel more individual.
Neighborhood overview
- Downtown and Libbey Park: walkable core with arts, shops and dining.
- Meiners Oaks: cottage and ranch mix near Maricopa Highway.
- Mira Monte and Upper Ojai: more hillside settings and privacy.
- Rural canyons like Matilija: very rural character and closer exposure to natural hazards.
Use MLS filters by zip, lot size and year built to compare micro‑markets. Keep language neutral and focus on your lifestyle fit.
Renting vs personal use
Short‑term rentals inside the City of Ojai are not allowed in residential zones. The municipal code reconfirms a prohibition on unlawful transient or vacation rentals under 30 days unless the use is a lawfully permitted hotel, motel or bed and breakfast. If your plan includes Airbnb‑style renting, treat the in‑city baseline as no short‑term rentals. Review the city’s short‑term rental ordinance early.
If a property is outside city limits in unincorporated Ventura County, different rules apply. The county administers transient occupancy tax (TOT), business registration and permits for short‑term lodging in those areas. Confirm jurisdiction and permit needs with the county, and review the county TOT guidance.
If you want rental flexibility without navigating STR rules, consider mid‑term or long‑term rentals where allowed, or focus on personal use.
Financing and taxes to plan for
Loan types and limits
Second‑home loans are underwritten differently than primary homes. Many conforming programs allow as little as 10 percent down for second homes, while investment property loans usually require more money down and higher reserves. Review occupancy and LTV guidance in Fannie Mae’s product matrix, then have a local lender run your scenarios.
Because Ojai includes higher‑price properties, some purchases may require high‑balance conforming or jumbo financing. Ask your lender to confirm Ventura County’s current conforming and high‑balance limits and to compare pricing for second home vs investment occupancy.
Property tax and TOT basics
California property taxes follow Proposition 13. In Ventura County, the base levy is about 1 percent of assessed value, plus voter‑approved assessments. The assessed value typically resets to your purchase price and can increase by up to about 2 percent each year until a reassessment event. For parcel‑specific context, see the county’s overview of property tax basics.
If you operate a lawful lodging use, know your TOT obligations. Inside the City of Ojai, voters approved a total hotel TOT rate up to 15 percent. See the city’s TOT ordinance. For unincorporated areas, the county’s TOT rate and registration are separate, detailed in the county TOT guidance. STRs in city residential zones are prohibited, so most second‑home owners inside city limits will not collect TOT.
Insurance and wildfire reality
Many parts of greater Ojai fall within High or Very High Fire Hazard Severity Zones. Under California’s AB 38, sellers of properties in these zones must provide documentation of defensible space compliance, or the parties agree to cure within one year. Learn what to expect on the Ventura County Fire Department’s AB 38 page.
Insurance can be more complex in wildfire‑prone areas. Some carriers may limit new policies or raise premiums, and certain homes need the California FAIR Plan plus difference‑in‑conditions coverage. The state has taken steps to improve access and protections; review the Department of Insurance updates on wildfire‑related insurance actions. In all cases, request multiple quotes early, ask about mitigation credits, and verify any requirements for vents, roof class and defensible space.
Local groups also support mitigation. The Ojai Valley Fire Safe Council shares community projects and best practices that can help you plan ongoing maintenance.
Ojai vs nearby Ventura County spots
- Price and inventory: Ojai often prices higher on a per‑property basis than many nearby cities because of acreage, views and limited supply. Use street‑level comps to evaluate any target address.
- Lifestyle: Ojai emphasizes privacy, arts and retreats; Ventura and Oxnard emphasize coastal access; Camarillo and Thousand Oaks read more suburban with freeway convenience. Match the setting to how you plan to use the home.
- Rules: Ojai’s in‑city STR prohibition is a major difference compared with some other jurisdictions. Always verify parcel‑specific rules, permits and taxes before you rely on rental income.
Buyer due‑diligence checklist
Use this list to move fast and lower surprises:
- Confirm city vs county jurisdiction for the parcel and verify STR rules. Inside the city, rentals under 30 days in residential zones are prohibited unless the use is a lawfully permitted lodging type. Review the city’s STR ordinance.
- Ask the seller for AB 38 defensible‑space documentation if the property is in a High or Very High Fire Hazard Severity Zone. See the county’s AB 38 guidance.
- Get multiple insurance quotes early, including any FAIR Plan or difference‑in‑conditions coverage if needed. Review state updates on insurance protections.
- Verify water and sewer setup. Is the property on municipal water and sewer, or private well and septic? Start with the city’s ordinances page and order well/septic inspections for rural parcels.
- Pre‑approve financing and compare second‑home vs investment occupancy terms. Check Fannie Mae’s matrix for baseline LTV guidance, then confirm lender overlays and local loan limits.
- Estimate taxes and fees. Use the county’s property tax overview and confirm any TOT responsibilities if you operate a lawful lodging use per county TOT rules or the city’s TOT ordinance.
- Budget for upkeep. Include landscaping, defensible‑space work, utilities, periodic HVAC and roof service, and optional property management if you will be away for long stretches. Local resources like the Ojai Valley Fire Safe Council can help with mitigation planning.
Ready to explore Ojai?
A second home in Ojai can be a true retreat if you buy with clear eyes. Focus on neighborhood fit, confirm the rules that affect how you can use the property, and line up your financing and insurance early. If you want local comps, a short list of on‑market options, or a second look at a property’s risk profile, reach out to Robin Plain for a personalized Ventura County consultation.
FAQs
Are Airbnb‑style rentals allowed in the City of Ojai?
- No, rentals under 30 days are prohibited in residential zones unless the property is a lawful lodging use; see the city’s short‑term rental ordinance.
What are typical second‑home prices in Ojai right now?
- Recent aggregator snapshots show a median listing price near about 1.75 million and a broader home value index around 1.10 million; verify street‑level comps for any address.
How do wildfire zones affect an Ojai purchase?
- Properties in High or Very High zones trigger AB 38 defensible‑space disclosures and can face tighter insurance markets, so get documentation and quotes early using the county’s AB 38 guidance.
What down payment is common for a second‑home loan?
- Many conforming programs allow as little as 10 percent down for second homes, but lenders may require stronger credit and reserves; review Fannie Mae’s matrix and speak with a local lender.
What taxes should I expect as a second‑home owner in Ventura County?
- Property taxes follow California Prop 13 rules and local assessments; if you operate a lawful lodging use, confirm TOT rates with the city or county using their property tax overview and county TOT guidance.
When is demand highest for Ojai retreats?
- Interest typically rises in spring, during festival weekends like the Ojai Music Festival, and around holidays, which can affect pricing and availability for properties marketed as retreats.
