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Yes, Airbnb is profitable in Sacramento in 2025, and the numbers speak for themselves.
With rising tourism, competitive pricing, and steady demand, Sacramento proves to be a lucrative market for short-term rental investments.
Here are 8 key stats to back it up.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Sacramento's Airbnb hosts earn around $3,000 monthly, without any strict regulations
In 2025, Sacramento's Airbnb market thrives, with hosts earning an average of $3,000 monthly due to lenient short-term rental regulations.
Unlike cities with strict rules, Sacramento's relaxed approach allows easier market entry and operation.
This environment attracts new hosts, encouraging investment in property quality and enhancing guest experiences.
Consequently, Sacramento is a popular travel destination, boosting demand and profitability for Airbnb hosts.
The high earnings potential and supportive regulations make starting an Airbnb business in Sacramento a promising venture amid rising tourism.
Source: airbtics
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2) The average annual revenue per Airbnb listing in Sacramento is $29,000, exceeding the usual $25,000 target
The average annual revenue per Airbnb listing in Sacramento is $29,000, surpassing the $25,000 target many hosts aim for, highlighting strong earning potential.
Sacramento's vibrant culture, growing tourism, and strategic location contribute to its popularity for short-term rentals.
The city attracts diverse visitors, ensuring high occupancy rates and impressive earnings.
Additionally, Sacramento's lower cost of living compared to other major Californian cities makes operational costs more manageable, enhancing profitability.
With these factors, 2025 is a promising time to start an Airbnb business in Sacramento, offering substantial returns for new hosts.
Source: airbtics
3) The average daily rate for Airbnb listings in Sacramento is $152, which is lucrative
The average daily rate (ADR) for Airbnb listings in Sacramento is about $152, indicating a strong short-term rental market.
This ADR allows hosts to set competitive rates, attracting a diverse range of guests while ensuring profitability.
Sacramento's market is balanced, not oversaturated with low-cost or dominated by high-end listings, appealing to both budget-conscious travelers and those seeking quality.
Starting an Airbnb in Sacramento in 2025 seems promising due to stable demand and the city's growing appeal as a travel destination, highlighting its potential as a lucrative location for hosts.
Source: AirDNA
4) California's tourism economy hit $1504 billion, with Sacramento contributing over $34 billion
In 2023, California's tourism economy reached $150.4 billion in visitor spending, with Sacramento contributing over $3.4 billion and supporting more than 28,000 jobs.
The city's tourism growth is supported by the renewal of the Sacramento Tourism Marketing District (STMD) for another decade starting in 2024, enhancing sales and marketing efforts.
This positions Sacramento as a prime destination, increasing demand for accommodations like Airbnb.
By 2025, starting an Airbnb in Sacramento is a promising opportunity, with strong economic indicators and strategic marketing efforts suggesting a profitable venture for hosts.
Sources: Visit Sacramento, Visit Sacramento, Visit California Industry
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5) The median home price in Sacramento is just $472,412, making it an attractive option for Airbnb investors
The median home price in Sacramento is $472,412, offering a reasonable entry cost for real estate investors compared to pricier California cities.
This affordability benefits those starting an Airbnb business, allowing more budget for property improvements and marketing.
Sacramento's growing popularity as a travel destination, with its rich history and vibrant arts scene, enhances its appeal for short-term rentals.
In 2025, starting an Airbnb in Sacramento seems profitable due to manageable initial investments and high demand from tourists and business travelers.
Source: BNBCalc
- No, home prices in Sacramento will not fall in 2025
6) "Visit Sacramento" is at its peak - it generated 332,000 hotel room nights last year, the highest in its 97-year history
In 2023, Visit Sacramento achieved a record 332,000 hotel room nights, the highest in its 97-year history, indicating a surge in demand for accommodations.
This growth highlights Sacramento's appeal as a travel destination, boosting both hotel and alternative lodging opportunities like Airbnb.
With increasing visitors, starting an Airbnb in Sacramento by 2025 could be highly profitable, offering unique experiences that differ from traditional hotels.
Now is an ideal time to invest in an Airbnb business in the city.
Source: CBS News
7) In 2025, Sacramento's demand for short-term rentals is expected to rise due to busy events
In 2025, Sacramento's demand for short-term rentals is expected to rise due to its busy events calendar, including the Aftershock music festival and the California State Fair.
These events attract large crowds, increasing the need for temporary accommodations.
With hotels often at full capacity, Airbnb hosts can meet this demand by offering unique lodging options.
This consistent demand makes starting an Airbnb in Sacramento a lucrative opportunity, with high occupancy rates and premium pricing.
Sacramento's event-driven market is ideal for short-term rental investments.
Source: BNBCalc
- Yes, 2025 is a good time to buy property in Sacramento
8) In 2024, Sacramento's metro area population increased by 1.26%
In 2024, the Sacramento metro area's population rose to 2,243,000, a 1.26% increase, indicating the region's growing appeal and economic vitality.
While Sacramento city grew by 0.05% annually since 2020, the metro area's growth suggests strong housing demand.
This trend highlights the potential for starting an Airbnb business in Sacramento, as the city's strategic location and attractions draw visitors and new residents.
The rising demand for unique lodging options presents a lucrative opportunity for Airbnb hosts.
Launching an Airbnb in 2025 could be profitable, capitalizing on the steady influx of potential guests.
Sources: World Population Review, Macro Trends, Neilsberg
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So, is Airbnb a profitable business in Sacramento? Absolutely, it is!
Airbnb is thriving in Sacramento, and the numbers clearly show why.
In 2025, hosts are earning an average of $3,000 monthly thanks to lenient short-term rental regulations that make it easy to enter the market. This relaxed approach attracts new hosts and boosts tourism, making Sacramento a popular destination. The average annual revenue per listing is $29,000, exceeding the $25,000 target, which highlights the strong earning potential in this vibrant city.
With an average daily rate of $152, hosts can set competitive prices that attract guests while ensuring profitability. Sacramento's appeal as a travel destination, with its rich history and culture, supports a thriving Airbnb market. The city's strategic location and growing population, which increased by 1.26% in 2024, further boost demand for short-term rentals.