Santa Clara County, California, home to both light- and commuter-rail services, has turned to transit-oriented development as a means to both reduce traffic congestion and redress severe shortages of affordable housing units. This article examines the degree to which proximity to two forms of rail transit--light rail and commuter rail-- confer benefits to residential properties in terms of sales values. Hedonic price models are estimated that show job proximity over the transit network as well as nearness to rail stops substantially add value to residential parcels. All else being equal, large apartments within a quarter mile of a light-rail station commanded land-value premiums as high as 45 percent. Such market profits not only lure developers to station sites, but also provide a potential source of revenues to local agencies that have set up the kinds of value-recapture programs that allow them to participate inland-appreciation benefits that accrue.