Folsom, CA Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

51 / 100

Folsom presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.

Folsom Short-Term Rental Market Overview

Folsom, CA is a Sacramento-area suburb where short-term rental investors face a competitive landscape—higher home values averaging $954,103 and a below-average revenue-to-price ratio mean deal sourcing requires discipline. With 65 active Airbnb listings generating an average of $35,644 in annual revenue and a 39% occupancy rate, the market rewards operators who target the right property size and maintain strong listing quality. The 156% year-over-year growth in active listings signals rising investor interest, though that influx tightens competition for bookings.

Key Market Statistics

According to Rabbu market data, the Folsom short-term rental market shows:

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 65
Average Daily Rate (ADR) vs. $551 state avg. $234
Average Occupancy Rate vs. 43% state avg. 39%
RevPAN ADR * Occupancy Rate $92
Average Monthly Revenue Historical 12-month average $2,970
Average Annual Revenue Historical 12-month average $35,644

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Folsom

Folsom draws investor attention because of its proximity to Sacramento employment centers, Folsom Lake recreation, and a suburban guest profile that values space and convenience.

Key investment factors

  • Proximity to Folsom Lake drives seasonal leisure demand, particularly in summer months
  • Sacramento metro corporate and government travelers create a baseline of weekday bookings
  • 3-bedroom properties deliver the highest RevPAN at $129, outperforming both smaller and larger units
  • Home values well below some Bay Area markets offer a more accessible entry point for Northern California investors
  • 97% of listings offer parking and 77% feature a workspace, signaling a dual leisure-and-remote-work guest base

Expert Market Assessment

"Folsom presents a moderate opportunity that rewards selectivity over broad strokes. The ROI score of 51 out of 100 reflects a market where strong investor demand has compressed margins—below-average revenue-to-price and supply/demand balance scores confirm that not every property will pencil out. Seasonality is relatively mild, with peak July revenue of $3,524 representing only about a 52% premium over the February low of $2,312, giving operators more cash-flow predictability than highly seasonal resort markets. Investors who focus on 3-bedroom listings—which combine the market's best occupancy (54%) with solid daily rates ($241)—are best positioned to generate returns that justify Folsom's elevated home prices."

— Rabbu Market Analysis Team

Understanding Folsom's ROI Score: 51/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

Factor Folsom Performance Weight
Revenue-to-Price Ratio Below average 40%
Occupancy Stability Average 30%
Market Growth Trend Below average 15%
Supply/Demand Balance Below average 15%

What This Means for Investors

Folsom's ROI score of 51 out of 100 places it in the "Competitive Opportunity" band, signaling that while the market has genuine demand, tighter margins require more deliberate property selection. The below-average revenue-to-price ratio is the primary drag, driven by home values near $954,000 against moderate annual revenues, and both market growth trend and supply/demand balance also score below average as rapid listing growth (156% YoY) outpaces demand gains. Pairing this data with thorough local regulatory research and targeting property types with proven outperformance—particularly 3-bedroom listings—will help investors identify deals that beat the market-wide averages.

Short-Term Rental Regulations in Folsom

Understanding local STR regulations is essential before investing in Folsom. Here's the current regulatory landscape:

Permit Requirements

The City of Folsom and the State of California may require short-term rental hosts to obtain a business license or STR permit before listing a property. Investors should verify current permit requirements directly with Folsom's planning or code enforcement department, as local rules can change.

Key Restrictions

Common restrictions in California suburban markets like Folsom can include occupancy limits, minimum-stay requirements, noise and nuisance ordinances, parking mandates, and HOA-level prohibitions that may override city permissions. It's important to review both municipal code and any applicable homeowners association CC&Rs before purchasing.

Tax Obligations

Short-term rental operators in California are generally subject to transient occupancy tax (TOT), and some jurisdictions also require state sales tax or tourism assessment collection. Platforms like Airbnb often handle TOT remittance on behalf of hosts, but investors should confirm their specific obligations with the City of Folsom and the California Department of Tax and Fee Administration.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Folsom can provide current regulatory guidance.

Short-Term Rental Financing for Folsom

Financing an Airbnb investment in Folsom requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Folsom Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Folsom's STR market is likely to see continued supply growth as new hosts enter, which could put modest downward pressure on occupancy unless demand keeps pace. Summer months should remain the revenue anchor, with peak-month earnings in the $3,400–$3,500 range, while winter troughs may hover around $2,300. ADR could edge up 1–3% as operators invest in amenity upgrades to differentiate, but occupancy is expected to remain in the 38–42% band given current supply-demand dynamics. Investors who time acquisitions carefully and target 3-bedroom properties—where RevPAN is strongest—stand the best chance of outperforming the market average."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Folsom, CA

What is the average Airbnb occupancy rate in Folsom?
The average Airbnb occupancy rate in Folsom is currently 39%, which sits slightly below the California state average of 43%. Occupancy varies meaningfully by property size—3-bedroom listings lead at 54%, while 4-bedroom properties lag at 28%. Investors targeting higher occupancy should consider mid-sized properties that appeal to a broader range of guests.
How much do Airbnb hosts make in Folsom?
Airbnb hosts in Folsom earn an average of $2,970 per month and approximately $35,644 per year based on trailing 12-month booking data. Earnings scale significantly with property size: 1-bedroom listings average $16,851 annually, while 4-bedroom properties can generate up to $57,551. These figures reflect market-wide averages, and individual results depend on listing quality, pricing strategy, and guest experience.
Is Folsom a good market for Airbnb investment?
Folsom is a competitive market with an ROI score of 51 out of 100, meaning investor interest is strong but higher property prices and growing supply require careful deal selection. The revenue-to-price ratio is below average given home values averaging $954,103, so profitability depends on choosing the right property type—3-bedroom listings offer the strongest RevPAN at $129 per available night. Investors who source deals below market and optimize operations can still find attractive returns here.
What is the average daily rate (ADR) for Airbnb in Folsom?
The average daily rate for Airbnb listings in Folsom is $234, which is well below the California state average of $551. ADR ranges from $102 for 1-bedroom listings up to $345 for 4-bedroom properties. This pricing reflects Folsom's suburban positioning rather than a resort or urban core market.
Are short-term rentals legal in Folsom?
Short-term rentals can operate in Folsom, CA, though hosts should verify current permit, licensing, and zoning requirements with the City of Folsom and any applicable homeowners association. California municipalities have varying rules around STR operations, and regulations can change, so confirming compliance before purchasing is essential.
When is peak season for Airbnb in Folsom?
Peak season in Folsom runs from June through August, with July delivering the highest average monthly revenue at $3,524. The shoulder months of May, September, and October also perform well, each exceeding $3,000 in average revenue. Winter months—January and February—represent the softest period, dipping to around $2,300.
How many Airbnbs are there in Folsom?
There are currently 65 active Airbnb listings in Folsom as of April 2026. One-bedroom units make up the largest share with 24 listings, followed by 3-bedroom (13), 2-bedroom (12), and 4-bedroom (10) properties. The market has seen significant growth, with a 156% year-over-year increase in active listings.
How is Airbnb revenue calculated in Folsom?
The annual and monthly revenue figures for Folsom are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the results into a market-level historical average. Because each month uses its own historical performance data, the figures naturally capture seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and how effectively the listing is managed.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

  • Regularly updated active Airbnb and STR listing counts, segmented by market and property size
  • Average daily rate, occupancy, and RevPAN metrics for the trailing 12-month period
  • Monthly and annual revenue estimates derived from actual booking performance of comparable listings
  • Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
  • Amenity prevalence data across active listings to identify guest expectations and competitive positioning

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and market conditions may have shifted since the most recent update. Local regulations, HOA restrictions, and tax obligations vary and should be independently verified before investing.

Next Steps

Ready to invest in Folsom's short-term rental market? Take action with these resources:

Browse Airbnbs for Sale

Explore active Airbnbs and STR-ready homes in Charlotte with verified income data.

View Properties

Connect with an Agent

Work with specialized agents who've helped investors acquire over $650M in STR properties.

Find an Agent

Connect with a Lender

Qualify for as low as 15% down on a DSCR loan using the rental property's projected income.

Find a Lender
Browse Airbnbs for Sale