The typical rent in Folsom has reached its highest level on record, hitting $2,655 a month in June, according to the Zillow Observed Rent Index. That figure surpasses any prior reading in the data Zillow tracks for the city, marking a new peak for local renters.
A new high for Folsom rents
The June median of $2,655 is up 3.1%, or $79 a month, from the $2,576 recorded a year earlier in July 2025. The increase pushes Folsom rents past their previous ceiling and continues a pattern of gradual gains rather than sharp swings.
At $2,655, the current median means a renter is paying roughly $948 more per year than a tenant signing at last summer’s rate, assuming a full-year lease at each level. The 3.1% year-over-year change is modest compared with the double-digit rent jumps seen in many markets during the early 2020s, but it is enough to set a fresh record for the city.
What renters can afford
Despite the record rent, Folsom remains comfortably outside rent-burdened territory. With a median household income of $139,804, according to Census American Community Survey figures for 2024, the typical Folsom household spends about 22.8% of its income on rent. That sits well below the 30% threshold that housing analysts use to define a rent burden.
The gap gives many local households more breathing room than renters in lower-income or higher-rent metros, where rent commonly consumes 30% or more of earnings. It is worth noting that the income figure reflects 2024 data, while the rent figure is current as of June 2026, so the actual share for new renters signing at today’s median may run slightly higher than the 22.8% estimate.
The rent-versus-buy picture
For households weighing whether to rent or buy, the distance between the two remains substantial. The median sale price in Folsom stood at $749,592, according to Redfin, keeping ownership a considerably larger financial commitment than the $2,655 monthly rent. On the financing side, the 30-year fixed mortgage rate averaged 6.49% in June 2026, down from 6.82% a year earlier, according to Federal Reserve data — a slightly lower borrowing cost than last summer for those considering a purchase.
Nationally, home prices have edged up over the past year, with the S&P/Case-Shiller U.S. National Home Price Index higher in its most recent reading than a year ago. That broader backdrop offers context but does not directly translate to Folsom’s local rent trends.
What it means for renters
For current Folsom renters, the takeaway is a market at a record high but rising at a measured pace. The $79 monthly increase over the past year is smaller in percentage terms than the rent spikes many markets experienced earlier this decade, and Folsom’s relatively high incomes continue to keep the typical rent burden below the level analysts flag as a concern.
Renters comparing options should note that the ZORI median reflects a broad mix of unit types and sizes across the city, so individual listings may fall above or below the $2,655 figure depending on bedroom count, location, and amenities. The affordability picture also varies by household: those earning below the city median will see rent consume a larger share of their income than the 22.8% citywide estimate suggests.
This report reflects rental data through June 30, 2026, from Zillow, with home price data from Redfin and mortgage and national price figures from the Federal Reserve. Housing and rental data are released with a lag, and figures may be revised in subsequent updates.