Folsom’s typical rent has reached the highest level on record, according to the Zillow Observed Rent Index. As of the end of August, the median rent in the city stood at $2,627 per month, marking a new peak in the data tracked here and reflecting steady upward pressure through the summer.
Rents at a record
The August figure represents a $105 increase from a year earlier, when the typical Folsom rent was $2,522 at the end of September 2025. That amounts to a 4.2% year-over-year gain. The climb to a fresh high underscores continued demand in the local rental market, with the current median now sitting above any previous reading in the ZORI series for the city.
For renters, the practical effect is a monthly cost roughly $105 higher than it was twelve months ago, or about $1,260 more over the course of a year for a household renewing at the current median.
Affordability context
Despite reaching a record, Folsom rents remain manageable relative to local incomes. Based on Census American Community Survey data for 2024, the median household income in Folsom is $139,804. At the current median rent of $2,627, a typical household would spend about 22.5% of its income on rent.
That share sits comfortably below the 30% threshold commonly used to define a household as rent-burdened. In other words, while the typical rent has never been higher in dollar terms, the median Folsom household still devotes less than a quarter of its income to rent — a cushion that many higher-cost markets do not offer. Renters earning below the local median, however, would face a higher rent-to-income ratio and less room in their budgets.
Rent versus buying
The rental market’s record high comes alongside elevated for-sale prices. The median home sale price in Folsom was $759,497, according to Redfin, keeping ownership out of reach for many households that might otherwise consider buying. That gap between rent levels and home prices remains a defining feature of the local market.
Financing costs add further weight to the rent-versus-buy calculation. The 30-year fixed mortgage rate averaged 6.67% in August 2026, up from 6.59% a year earlier and 6.54% in July 2026, according to Federal Reserve data — leaving borrowing costs slightly higher than they were last summer. Nationally, home prices have continued to rise, with the S&P/Case-Shiller U.S. National Home Price Index higher in its most recent reading than a year earlier.
What it means for renters
The 4.2% annual rent increase in Folsom outpaces the pace of general price growth in many recent periods, and the move to a new record means renters signing leases today are, on average, paying more than at any prior point captured in the data. At the same time, the affordability picture remains relatively favorable by regional standards, with the median household spending 22.5% of income on rent.
Renters weighing a move against staying put now face a market where the typical asking rent has crossed into new territory. For those comparing renting to buying, the combination of a $759,497 median sale price and a 6.67% average mortgage rate continues to make renting the lower-commitment option for many households, even as monthly rents reach fresh highs.
As always, individual rents vary by unit type, size, and neighborhood, and the citywide median reflects the broader market rather than any single listing.