I think you're right. Most likely domestic, and not usually seen running wild around neighborhoods. Adorable though!
The only "domestic" wild rabbits I've seen were in Cannon Beach. Someone let some domestic rabbits loose there a few years back. The town became overrunned by what had become wild rabbits. They were really fun to watch. These little creatures were pretty friendly -- didn't seem too afraid of people.
RE: Sighting: Unusual Wild Woolly Rabbit [Photography]