Sacramento, California Short-Term Rental Market Overview

Population: 508,700
Annual Visitors: 15,300,000
Total STRs: 1,972
ADR: $187.39

Visitor Profile

Sacramento, California attracts a diverse array of visitors who are drawn to its rich history, vibrant cultural scene, and renowned food experiences, especially its farm-to-fork cuisine. Many travelers are history enthusiasts eager to explore landmarks like the California State Railroad Museum and Old Sacramento State Historic Park, which offer immersive, interactive exhibits reflecting the city’s pioneering past. In addition, leisure travelers seeking weekend getaways or family outings often enjoy the city’s scenic riverfront, lively events, and outdoor activities in nearby parks and trails.

For those seeking a blend of cultural exploration and modern urban experiences, Sacramento provides a welcoming atmosphere with trendy breweries, art galleries, and boutique shopping districts. This vibrant mix ensures visitors leave with memorable stories and a deeper appreciation for California’s capital. Whether on a short city escape or a history-focused journey, guests value authentic local experiences that highlight Sacramento’s unique heritage and lively community, making it an ideal destination for short-term rentals targeting culturally curious or family-oriented travelers.

Top Attractions

Sacramento, California, offers a vibrant mix of historical, cultural, and natural attractions that appeal to a wide array of travelers. Visitors can explore iconic sites such as the California State Capitol, which stands as a symbol of the state’s political history, and the California State Railroad Museum, where history comes alive through vintage trains and engaging exhibits. The city’s historic districts and waterfront areas provide scenic settings for leisurely strolls, dining, and entertainment, making it a perfect destination for those looking to immerse themselves in both the past and the present.

Beyond its historical and cultural offerings, Sacramento is renowned for its thriving food scene, highlighted by its nickname as the Farm-to-Fork Capital. This culinary emphasis is complemented by lively neighborhoods with trendy boutiques, microbreweries, and gastropubs. Additionally, the city serves as a convenient hub for outdoor adventures, with nearby destinations like Lake Tahoe, Yosemite, and San Francisco just a short drive away, offering opportunities for hiking, sightseeing, and exploring the stunning natural beauty of Northern California.

Regulations

Sacramento, California maintains a structured regulatory environment for short-term rentals (STRs) that hosts must navigate to ensure compliance. These regulations aim to balance the economic benefits of short-term rentals with community impacts such as noise, neighborhood character, and housing availability. Hosts should expect to engage in a formal application process, comply with operational standards, and observe specific occupancy and safety requirements. Navigating these rules requires attention to licensing, use restrictions, and tax obligations, making it vital for hosts to stay informed through official channels.

Key Regulatory Considerations:

Licensing and Permits: Hosts in Sacramento are typically required to obtain a short-term rental permit from the city’s Community Development Department. This process involves submitting an application with a fee, demonstrating compliance with safety standards, and may require proof of property ownership or landlord permission. Permits need renewal periodically as defined by city regulations.

Primary Residence Requirements: The regulations often stipulate that the property rented on a short-term basis must be the host’s primary residence. This means the host resides at the property for a minimum number of days per year, and STR use is limited to ensure it is not used primarily as a commercial lodging operation.

Zoning and Location: Certain zones within Sacramento may prohibit or restrict short-term rentals to protect residential character. Hosts must verify zoning compliance to avoid penalties and ensure eligibility for permit issuance.

Occupancy, Health & Safety: The city mandates adherence to specific health and safety standards, including installation of smoke detectors, carbon monoxide alarms, and fire extinguishers. Occupancy limits are enforced to prevent overcrowding, typically aligned with the size and layout of the property.

Tax Obligations: Hosts are responsible for collecting and remitting transient occupancy taxes (TOT) along with applicable sales taxes to the city or county. Proper registration with the tax authority and timely filings are critical.

Operational Standards & Enforcement: Rules often include noise ordinances, guest conduct policies, and limitations on advertising to ensure neighborhood tranquility. Non-compliance can lead to fines, permit revocation, or other enforcement actions.

For the most current and legally binding information, property owners should consult the City of Sacramento’s Official Short-Term Rental Regulations Page, which provides detailed guidance, application forms, and updates directly from the governing authority.

Sacramento, California Market Performance Trends

LTM Avg. Daily Rate$179.00
LTM Occupancy Rate62.5%
LTM Avg. Revenue$2,446

Sacramento, California Rental Market Insights

10-Year Market Growth

Booking Activity

  • 1-3 Months:59.5% Booked
  • 4-6 Months:54.3% Booked
  • 7-9 Months:42.4% Booked
  • 10-12 Months:10.9% Booked

Cancellation Policies

  • Flexible:38.8%
  • Moderate:34%
  • Strict:26%
  • Super Strict:26%
  • N/A:0.4%

Minimum Stay

  • 1 Day:593
  • 2 Days:372
  • 3 Days:100
  • 4-6 Days:66
  • 7-29 Days:51
  • 30+ Days:445

Sacramento, California Rental Market Composition

Entire Place by Beds

Common Rental Amenities

Guest Rating Highlights

  • Overall Rating:4.74 / 5
  • Cleanliness:4.77 / 5
  • Location:4.74 / 5
  • Value:4.73 / 5
  • Accuracy:4.81 / 5
  • Check-in:4.88 / 5
  • Communication:4.89 / 5

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