Airbnb City Guide: The Best Places To Invest in Sacramento, California

Airbnb Rules and Regulations in Sacramento, California

As of 2024, Sacramento has rules and regulations governing short-term rentals like Airbnb. Hosts must obtain a Short-Term Rental Permit and a Business Operations Tax Certificate and register to collect and remit the 12% Transient Occupancy Tax. The ordinance allows both primary and secondary residences to be rented out but caps unhosted stays at 90 nights per year.

Occupancy is limited to 6 guests at a time, and hosts are required to maintain a rental registry. Permits must be renewed annually, and the city notifies neighbors within 200 feet when a permit is issued. These regulations aim to balance the benefits of short-term rentals with the need to preserve neighborhood character and housing availability in Sacramento.

Sacramento Airbnb Market Data:

• Average Revenue – $28.5K per year
• Average Daily Rate – $164.4 per night
• Average Occupancy Rate – 63%
• Average RevPAR – $101.7
• Average Home Prices – $472,412

1. Top Place to Invest in Sacramento, California - East Sacramento

East Sacramento, a charming and historic neighborhood, has emerged as a prime location for Airbnb investors in 2024. With its tree-lined streets, diverse architecture, and proximity to downtown, East Sacramento offers a unique blend of urban convenience and suburban tranquility, making it an attractive destination for both short-term and long-term renters.

East Sacramento Airbnb Market Data:

• Average Revenue – $38.3K per year
• Average Daily Rate – $210.3 per night
• Average Occupancy Rate – 68%
• Average RevPAR – $145.3

Convenience - 8/10

East Sacramento boasts excellent walkability, with numerous shops, restaurants, and cafes within easy reach. The neighborhood is well-connected by public transportation, including light rail and bus lines, making it convenient for visitors to explore the city without relying on a car.

Tourist Attractions - 7/10

While East Sacramento itself is primarily residential, it is situated near several popular tourist attractions. The historic Fabulous Forties neighborhood, known for its grand homes and lush gardens, is just a short walk away. Additionally, the nearby McKinley Park offers 32 acres of green space, a rose garden, and a popular farmers market.

Things to Do - 7/10

East Sacramento offers a variety of activities for visitors, from exploring the quaint boutiques and artisanal shops along Folsom Boulevard to enjoying a picnic in one of the neighborhood's many parks. The area also hosts several annual events, such as the Taste of East Sacramento food festival and the East Sacramento Garden Tour.

Average Home Prices - 6/10

As of 2024, the median home price in East Sacramento is $850,000, according to Zillow data. This represents a 4.5% appreciation rate over the past year, slightly lower than the city-wide average of 5.2%. While East Sacramento homes are more expensive than those in some other areas of the city, the neighborhood's desirability and strong rental demand make it a solid location for starting a short-term rental business.

Proximity to Work-Related Travel - 8/10

East Sacramento is conveniently located near several major employment centers, including Mercy General Hospital, Sutter Medical Center, and the Sacramento Convention Center. The Golden 1 Center, home to the Sacramento Kings NBA team, is also just a short drive away, making East Sacramento an ideal base for business travelers and event attendees. Hosts can even make a themed rental for Kings fans.

X-Factor - 9/10

East Sacramento's strong sense of community and neighborhood pride sets it apart. The area is known for its active neighborhood association, organizing events and advocating for local improvements. This strong community spirit, combined with the neighborhood's historic charm and convenient location, makes East Sacramento a highly desirable destination for Airbnb guests seeking an authentic Sacramento experience.

2. Top Place to Invest in Sacramento, California - Valley High-North Laguna

Valley High-North Laguna, a diverse and evolving neighborhood in South Sacramento, presents a compelling opportunity for Airbnb investors in 2024. With its affordable housing, proximity to major highways, and ongoing revitalization efforts, this area offers a unique blend of value and potential for short-term rental investors looking to capitalize on the growing demand for budget-friendly accommodations.

Valley High-North Laguna Airbnb Market Data:

• Average Revenue – $24K per year
• Average Daily Rate – $217.5 per night
• Average Occupancy Rate – 40%
• Average RevPAR – $85.2

Convenience - 6/10

While Valley High-North Laguna may not boast the walkability of more central neighborhoods, it is well-connected by major thoroughfares like Highway 99 and Interstate 5. This accessibility makes it a convenient base for travelers exploring the Sacramento region by car. However, public transportation options are somewhat limited, which could be a drawback for some guests.

Tourist Attractions - 4/10

Valley High-North Laguna itself is primarily residential and lacks major tourist attractions within its borders. However, the nearby Cosumnes River Preserve offers opportunities for hiking, birdwatching, and enjoying nature. The neighborhood's proximity to downtown Sacramento (about a 20-minute drive) allows visitors to easily access the city's main cultural and historical sites.

Things to Do - 5/10

The area's main draw is its affordability and residential character, rather than an abundance of tourist activities. That said, Valley High Park provides a green space for outdoor recreation, and the Valley Hi-North Laguna Library offers community events and resources. Investors targeting longer-term stays or budget-conscious travelers may find this sufficient.

Average Home Prices - 8/10

As of March 2024, the median home price in Valley High-North Laguna is $439,999, according to Trulia data. This represents a more affordable entry point compared to Sacramento's overall median of $850,000. While appreciation rates in the neighborhood have been modest at around 2% over the past year, the lower acquisition costs make it an attractive option for investors seeking cash flow.

Proximity to Work-Related Travel - 5/10

Valley High-North Laguna is primarily a residential area and does not have a high concentration of major employers or convention centers within its immediate vicinity. However, its location along Highway 99 provides relatively easy access to downtown Sacramento and other employment hubs. Investors targeting business travelers may find this adequate, but not exceptional.

X-Factor - 7/10

What sets Valley High-North Laguna apart is its potential for transformation. The neighborhood has been undergoing revitalization efforts, including the construction of the innovative Valley Hi-North Laguna Library, which has become a community focal point. As more investment flows into the area, Airbnb hosts may benefit from rising property values and increased demand for budget-friendly accommodations in an up-and-coming neighborhood.

3. Top Place to Invest in Sacramento, California - Land Park

Land Park, a charming and historic neighborhood in Sacramento, has emerged as a prime location for establishing an Airbnb business in 2024. With its tree-lined streets, proximity to downtown, and an abundance of local attractions, Land Park offers a unique blend of residential tranquility and urban convenience that appeals to both short-term and long-term renters.

Land Park Airbnb Market Data:

• Average Revenue – $32.2K per year
• Average Daily Rate – $168.4 per night
• Average Occupancy Rate – 60%
• Average RevPAR – $101.7

Convenience - 9/10

One of Land Park's greatest assets is its exceptional walkability. The neighborhood boasts numerous shops, restaurants, and cafes within easy reach, making it convenient for visitors to explore without relying on a car. Public transportation options, including light rail and bus lines, further enhance the area's accessibility.

Tourist Attractions - 8/10

Land Park is home to several popular tourist attractions that draw visitors from far and wide. The Sacramento Zoo, located within William Land Park, is a major highlight. Fairytale Town is another beloved destination, an enchanting park with play equipment inspired by fairy tales and nursery rhymes. The park also features a golf course and Funderland, a small amusement park perfect for young children.

Things to Do - 8/10

In addition to its main attractions, Land Park offers a diverse array of activities for visitors. The neighborhood hosts annual local events like the Taste of Land Park food festival, the Sacramento Shakespeare Festival, and the Curtis Fest Artisan Fair. Outdoor enthusiasts can enjoy picnicking and jogging in William Land Park or explore the historic Old City Cemetery.

Average Home Prices - 7/10

As of February 2024, the median sale price for homes in Land Park was $999,000, representing a substantial 33.2% year-over-year increase. While prices are higher than the Sacramento average, Land Park's desirability and strong rental demand make it an attractive option for Airbnb investor. The neighborhood's appreciation rate outpaces the city-wide average, indicating solid potential for long-term investment returns.

Proximity to Work-Related Travel - 8/10

Land Park's location near downtown Sacramento makes it convenient for business travelers and those attending events at the Sacramento Convention Center. The UC Davis Medical Center and Mercy General Hospital are also within easy reach. While not directly adjacent to these facilities, Land Park's central location and good transportation links make it a practical choice for work-related stays.

X-Factor - 9/10

What sets Land Park apart is its strong sense of community and neighborhood character. The area's historic homes, tree-canopied streets, and well-maintained parks create a welcoming and visually appealing environment. Land Park's proximity to downtown Sacramento and its residential charm make it an ideal base for travelers seeking a balance of urban amenities and a tranquil retreat.

4. Top Place to Invest in Sacramento, California - Alkali Flats

Alkali Flats, a historic neighborhood in the heart of Sacramento, is quickly becoming a hotspot for Airbnb investors in 2024. This vibrant, up-and-coming area is known for its diverse architecture, thriving arts scene, and unbeatable location just north of downtown Sacramento, making it an attractive destination for short-term renters seeking an authentic urban experience.

Alkali Flats Airbnb Market Data:

• Average Revenue – $27.3K per year
• Average Daily Rate – $169.7 per night
• Average Occupancy Rate – 55%
• Average RevPAR – $92.6

Convenience - 9/10

One of Alkali Flats' greatest strengths is its exceptional convenience. The neighborhood boasts excellent walkability, with numerous restaurants, cafes, and shops within easy reach. Public transportation is readily available, with light rail and bus lines connecting Alkali Flats to the rest of the city, making it easy for visitors to explore Sacramento without the need for a car.

Tourist Attractions - 7/10

While Alkali Flats itself is primarily residential, it is situated near several popular tourist attractions. The California State Capitol Museum is just a short walk away, offering visitors a chance to explore the state's political history. The Crocker Art Museum, one of the largest art museums in the region, is also nearby, showcasing an impressive collection of California art.

Things to Do - 8/10

Alkali Flats offers a variety of activities for visitors, from exploring the neighborhood's unique murals and street art to enjoying live music at local venues like the Torch Club. The area also hosts several annual events, such as the Alkali Flats Art Walk and the Sacramento Mural Festival, which showcase the neighborhood's vibrant creative community.

Average Home Prices - 7/10

As of 2024, the median home price in Alkali Flats is $650,000, according to Zillow data. This represents a 6.5% appreciation rate over the past year, slightly higher than the city-wide average. While prices in Alkali Flats are lower than some of Sacramento's more established neighborhoods, the area's growing popularity and central location make it a solid choice for Airbnb investors seeking strong rental demand and potential for appreciation.

Proximity to Work-Related Travel - 9/10

Alkali Flats is ideally situated for work-related travel, with its proximity to major employment centers like the California State Capitol and the Sacramento County Courthouse. The Golden 1 Center, home to the Sacramento Kings NBA team and a popular venue for concerts and events, is also just a short walk away, making Alkali Flats an excellent choice for business travelers and event attendees.

X-Factor - 8/10

Its unique blend of history and urban energy sets Alkali Flats apart. The neighborhood's diverse architecture, ranging from Victorian homes to modern lofts, reflects its rich past and ongoing transformation. The thriving arts scene, with its murals, galleries, and live music venues, adds to the area's vibrant character. This combination of historical charm and contemporary culture makes Alkali Flats a one-of-a-kind destination for Airbnb guests seeking an immersive Sacramento experience.

5. Top Place to Invest in Sacramento, California - Downtown

Downtown Sacramento, the vibrant heart of California's capital city, has emerged as a top location for building a short-term rental investment in 2024. With its thriving arts and culture scene, diverse dining options, and proximity to key attractions, Downtown offers an unparalleled urban experience for short-term renters seeking to immerse themselves in the best of Sacramento.

Downtown Airbnb Market Data:

• Average Revenue – $44.6K per year
• Average Daily Rate – $197.1 per night
• Average Occupancy Rate – %69
• Average RevPAR – $134.3

Convenience - 10/10

Downtown Sacramento boasts exceptional convenience, with an abundance of amenities within walking distance. The area is a paradise for foodies, offering an eclectic mix of restaurants, cafes, and bars to suit every taste. Public transportation is readily available, with light rail and bus lines connecting Downtown to the rest of the city, making it easy for visitors to explore without the need for a car.

Tourist Attractions - 9/10

Downtown is home to many of Sacramento's top tourist attractions. The California State Capitol Building and its surrounding park are must-see destinations, offering a glimpse into the state's political history. The Golden 1 Center, a state-of-the-art arena hosting NBA games and world-class concerts, is another major draw. Other nearby attractions include the Crocker Art Museum, the California State Railroad Museum, and Old Sacramento, a historic district with Gold Rush-era buildings and shops.

Things to Do - 9/10

From exploring the city's rich history to enjoying its vibrant arts and entertainment scene, Downtown Sacramento offers a wealth of activities for visitors. The area hosts numerous festivals and events throughout the year, such as the Sacramento Music Festival and the Farm-to-Fork Festival, which celebrate the city's cultural diversity and agricultural heritage. Visitors can also enjoy live music at venues like the Crest Theatre or take a stroll along the scenic Sacramento River.

Average Home Prices - 6/10

As of 2024, the median home price in Downtown Sacramento is $750,000, according to Zillow data. This represents a modest 3.5% appreciation rate over the past year, slightly lower than the city-wide average. While prices in Downtown are higher than some other areas of the city, the neighborhood's prime location and strong rental demand make it an attractive option for Airbnb investors seeking consistent bookings and potential for long-term appreciation.

Proximity to Work-Related Travel - 10/10

Downtown Sacramento is the ultimate location for work-related travel, with its concentration of major employers, government offices, and convention facilities. The Sacramento Convention Center, which hosts numerous conferences and events throughout the year, is located in the heart of Downtown. The area is also home to several major hospitals, including Sutter Medical Center and UC Davis Medical Center, making it an ideal base for medical professionals and patients' families. This makes it one of the best spots for investors looking to cater to professionals and start their own corporate rental.

X-Factor - 9/10

What sets Downtown Sacramento apart is its perfect blend of urban sophistication and laid-back charm. The area's historic buildings, tree-lined streets, and public art installations create a unique and visually stunning environment. Downtown's proximity to the Sacramento River and its numerous parks and green spaces provide a welcome respite from the hustle and bustle of city life. This combination of urban amenities and natural beauty makes Downtown Sacramento an irresistible destination for Airbnb guests seeking an authentic and memorable experience.