Vacation rental example photo of a backyard at night

Vacation Rentals

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If you plan to use your home or property in Folsom as a vacation rental (e.g., Airbnb, Vrbo, Vacasa, etc.), you must comply with regulations in the Folsom Municipal Code (FMC). A rental qualifies as a vacation rental if the apartment, house, or condominium is furnished and rented on a temporary basis (less than 30 days).

Regulations are provided below:

  • City Business License Certificate required (Chapter 5.04 of FMC).
  • Accessory Dwelling Units (ADU) are prohibited as vacation rentals (FMC Section 17.105.140J).
  • No more than three paying guests allowed in a dwelling (FMC Section 17.58.50).
  • Vacation rentals with large groups or special events such as weddings, receptions, fundraisers, etc. are subject to the city's bed & breakfast inn requirements and must obtain a conditional use permit before operation (FMC Chapter 17.27).
  •  Vacation rental owners are required to pay transient occupancy tax (TOT) or hotel tax to the City quarterly (FMC Chapter 3.14)
  • If you live in a neighborhood with a homeowners' association (HOA) and/or covenants, conditions, and restrictions (CC&Rs) additional private rules may apply.

As part of the Zoning Code update, the city is considering new vacation rental regulations that may be adopted in mid-2024. For more information on the update, visit the Zoning Code Update page.