Multifamily and Duplex Properties for Sale in Folsom: Zoning and Rent Rules

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What multifamily in Folsom looks like

Folsom’s income property is younger than most of Sacramento County’s. Small duplex and fourplex lots sit in the older neighborhoods around the historic district, garden apartment complexes line the arterials north of Highway 50, and newer townhome and apartment communities are rising in the plan area south of the freeway. Upstairs apartments over Sutter Street storefronts exist but are limited by historic district rules. For two to four units, see financing 2-4 unit properties; for larger complexes, apartment building loans.

Where the zoning allows it

Folsom is an incorporated city with its own zoning in Title 17 of the Municipal Code. Its apartment districts set intensity mostly through lot size, coverage, height and parking rather than a units-per-acre cap; R-M is the exception, with a lot-area-per-unit rule.

District	Two units	Multifamily	Key standards
R-2 Two-Family	Two-family dwellings permitted	No	6,000 sq ft lots (7,500 corner). 40% coverage. Two covered spaces per unit
R-3 Neighborhood Apartment	Yes	Three- or four-unit buildings, up to four units per lot	2 stories/35 ft. 50% coverage. 1.5 spaces per unit
R-M Multifamily	Yes	Apartments and group dwellings	1,700 sq ft of lot area per unit (about 25 per acre). 4 stories/50 ft. 60% coverage
R-4 General Apartment	Yes	Apartments and group dwellings; no detached single-family	4 stories/50 ft. 60% coverage. 1.5 spaces per unit
MU Mixed-Use zones	Duplexes not allowed	Apartments, condos, townhomes, live/work	12–30 units per acre (20 minimum in town center and entertainment overlays). PD permit. Half-acre minimum
H-D Historic District	Upstairs or accessory units	CUP for three or more units; residential subareas capped at 12 units; none in The Preserve	Historic District Commission review

Parking multiplier. In R-3, R-M and R-4, complexes of four or more units carry 1.5 times the base parking requirement, so check whether an older building’s stalls meet today’s rule before planning additions.

ADUs and SB 9. Folsom has its own ADU chapter, Chapter 17.105, and state ADU law sets the floor for what it can require; note that the MU use table lists second dwelling units as not permitted. SB 9 applies to qualifying single-family lots in the R-1 districts, not to the apartment zones. See our ADU investment guide and SB 9 lot split guide.

Inclusionary housing. Under Chapter 17.104, projects of ten or more units set aside 10%: 3% very low income and 7% low income. Rental projects are covered only when they receive city funding or sign a voluntary affordable housing agreement, so a typical market-rate apartment project is outside it. Affordable rentals are restricted for at least 30 years.

South of Highway 50. The plan area south of the freeway was planned for up to 10,045 homes on 3,510 acres, including multifamily sites governed by the specific plan rather than only the base tables.

Rent rules: state law only

The Attorney General’s rent cap page, updated July 16, 2026, places Sacramento County in All Other Counties: 7.7% for increases from August 1, 2025 and 8.6% from August 1, 2026 through July 31, 2027. Folsom is not on the AG’s chart of local rent ordinances; the City of Sacramento is the only Sacramento County jurisdiction listed. Newer buildings south of Highway 50 may be exempt for their first 15 years under AB 1482’s rolling new-construction exemption. See our AB 1482 guide and just cause eviction guide.

Folsom rental property rules

Condominium conversions. Chapter 17.110 makes converting apartments to condos a council decision with heavy tenant protections:

Rental stock tests. The city aims to keep rentals at 15% or more of total housing, limits conversions in 50-plus-unit projects to 15% of that stock per year unless replacement units are built, and may deny a permit when vacancy in large complexes is under 5%.
Notice. Tenants get a notice of intent at least 60 days before filing and 180 days’ notice before having to move.
Relocation. Each non-purchasing tenant receives one month’s rent; seniors 62+, disabled and lower-income tenants get a year’s rent or an 18-month lease extension.
Inspections. A licensed physical elements report sampling at least 25% of units, pest reports and a police security review are required.
Eligibility. Buildings with nonconforming parking, setbacks or height cannot convert.

Not covered here. Unlike unincorporated Sacramento County, Folsom is not part of the County’s Rental Housing Inspection Program. We did not verify a city rental registration or short-term rental ordinance; confirm current city rules before buying.

Transfer tax. Folsom has no city transfer tax. The County rate of $0.55 per $500 applies, according to the County Clerk-Recorder.

Building age, decks and new-construction issues

Older wood-frame buildings near the historic district deserve a seismic retrofit review. Buildings with three or more units and elevated balconies or stairways need SB 721 balcony inspections. For newer projects south of Highway 50, check special tax and assessment district charges on the tax bill, which can be a meaningful operating cost.

Underwriting a Folsom multifamily purchase

Confirm the zone. Five units on an R-3 lot exceed the four-unit limit and may be nonconforming.
Check parking against the 1.5-per-unit rule and the four-unit multiplier.
Determine the AB 1482 status of each unit, including the 15-year new-construction exemption.
If a condo exit is part of the plan, test it against Chapter 17.110 before you buy.
Collect leases, the rent roll and estoppel certificates.
Rebuild expenses with reassessed taxes, any special district assessments and insurance in our rental property analysis.

Questions people ask

Is there rent control in Folsom?

No local ordinance. Covered units follow AB 1482, up to 8.6% for increases from August 1, 2026.

How many units can I build on an R-3 lot?

Up to four units per lot, at two stories and 35 feet.

What density does R-M allow?

One unit per 1,700 square feet of lot area, roughly 25 units per acre.

Do Folsom’s inclusionary rules apply to my apartment project?

Only if the rental project receives city funding or signs an affordable housing agreement; for-sale projects of ten or more units are covered.

Can I convert my Folsom apartments to condos?

Only with a council-approved conversion permit, tenant notice and relocation benefits, and only if the building’s parking, setbacks and height conform.

Are apartments allowed in Folsom’s historic district?

Upstairs and accessory units are allowed; three or more units need a CUP, and residential subareas cap projects at 12 units.

Does Folsom have a transfer tax?

No city tax. Only the County’s $0.55 per $500 applies.

Sources & notes

Note: We did not open the ADU chapter (17.105) or the mobile home park chapter (17.74). Chapter 17.104 refers in one place to a 15% requirement while setting 10% elsewhere; confirm with the city.

General information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

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