Is Coloma, California Good for Airbnb Investment?

To start an Airbnb in Coloma, California, begin by researching El Dorado County's short-term rental regulations, which typically require a Transient Occupancy Registration Certificate and compliance with zoning laws that may restrict rentals in residential areas to a maximum of 30 days per year without special permits. Contact El Dorado County Planning Services to obtain the necessary Conditional Use Permit (CUP) for short-term rentals, which costs approximately $2,000-$4,000 and requires neighbor notification and potential public hearings. Find a suitable property in Coloma's historic gold rush area, considering proximity to American River recreation and Marshall Gold Discovery State Historic Park, with properties typically ranging from $400,000-$800,000 for cabins or historic homes. Furnish the property with rustic, gold rush-themed decor appropriate to the area's heritage tourism market, including essential amenities like Wi-Fi, kitchen supplies, linens, and outdoor furniture for river activities. Register for California state taxes and El Dorado County's Transient Occupancy Tax (TOT) of 10-12%, then create your Airbnb listing highlighting proximity to white water rafting, gold panning, and historic sites. Manage the property by establishing relationships with local cleaning services in nearby Placerville or Auburn (20-30 minutes away), install keyless entry systems, and consider hiring a local property management company since Coloma's remote location may require on-site assistance for guest issues and maintenance.

For identifying profitable STR properties in Coloma, California, focus on properties within 1-2 miles of the American River for rafting and gold panning access, as this historic Gold Rush town attracts outdoor enthusiasts year-round. Target 2-4 bedroom cabins or rustic homes with amenities like hot tubs, fire pits, river views, and parking for boat trailers, as these features command premium rates of $150-300 per night during peak season (May-September). Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Placerville and Auburn, while researching competition through Airbnb and VRBO searches within a 10-mile radius to identify gaps in luxury or budget offerings. The market benefits from proximity to Sacramento (45 minutes) and Lake Tahoe (90 minutes), making it attractive for weekend getaways, so properties near Highway 49 with easy access perform better. Utilize STR-specific tools like Rabbu and AllTheRooms for market analysis, check El Dorado County's STR regulations and permit requirements, and consider seasonal demand patterns with peak bookings during rafting season and fall foliage, while winter months may see 40-60% occupancy drops requiring competitive pricing strategies.

To obtain an Airbnb/STR permit in Coloma, California, you must first contact El Dorado County's Planning and Building Department since Coloma is an unincorporated community within El Dorado County jurisdiction. Begin by submitting a Transient Rental Permit application through the county's online portal or in-person at 2850 Fairlane Court, Placerville, CA 95667. Required documents typically include a completed application form, property deed or lease agreement, site plan showing parking and access, septic system inspection report, fire safety compliance certificate, proof of liability insurance (minimum $1 million), business license, and TOT (Transient Occupancy Tax) registration. The application fee ranges from $500-800 with annual renewal fees of approximately $200-300. Additional costs may include septic inspection ($300-500), fire safety inspection ($150-250), and business license fees ($50-100). The approval timeline typically takes 60-90 days depending on application completeness and inspection scheduling. Specific Coloma/El Dorado County requirements include maximum occupancy limits based on bedrooms and septic capacity, designated parking spaces (typically 2 minimum), 24/7 local contact person within 30 minutes of property, noise ordinance compliance, and adherence to fire safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Properties must also comply with setback requirements and cannot exceed 28 nights per guest stay, with some areas having additional density restrictions limiting the percentage of STRs per neighborhood.

Short-term rentals (STRs) in Coloma, California are generally subject to El Dorado County regulations since Coloma is an unincorporated community. As of recent years, El Dorado County has implemented STR ordinances that typically require permits, limit occupancy, mandate parking requirements, and impose noise restrictions. The county generally allows STRs in residential zones but requires operators to obtain a Short-Term Rental Permit, maintain liability insurance, and comply with health and safety standards. Properties must meet specific criteria including adequate septic systems and water supply, particularly important in rural areas like Coloma. Recent changes around 2020-2022 have included stricter enforcement mechanisms, increased permit fees, and enhanced neighbor notification requirements. Some areas near sensitive environmental zones or with inadequate infrastructure may face additional restrictions or prohibitions. The county has also implemented complaint-driven enforcement and can revoke permits for violations, with particular attention to noise, parking, and occupancy limits that commonly affect rural communities like Coloma where properties are often on septic systems and private wells.

The best areas for Airbnb investment in Coloma, California are primarily concentrated around the American River corridor and historic downtown Coloma, particularly near Marshall Gold Discovery State Historic Park where James Marshall discovered gold in 1848, attracting history enthusiasts and educational tourists year-round. The Lotus Road area offers excellent access to whitewater rafting companies like American River Recreation and OARS, making it ideal for adventure tourism during peak rafting season from April through September. Properties near Coloma Resort and the American River Resort benefit from overflow demand when these establishments are fully booked, especially during summer weekends and the annual Gold Discovery Days celebration in January. The Highway 49 corridor provides convenient access for visitors exploring the broader Gold Country region, including nearby attractions in Auburn and Placerville, while offering lower property acquisition costs compared to more developed tourist areas. The rural residential areas along Cold Springs Road and Green Valley Road appeal to guests seeking peaceful retreats with river access, particularly popular among Bay Area residents looking for weekend escapes within a 2-hour drive, and these locations often command premium nightly rates due to their secluded nature and proximity to outdoor recreation activities.

Airbnb properties in Coloma, California are subject to multiple lodging taxes including California state transient occupancy tax, El Dorado County transient occupancy tax at approximately 10-12%, and potentially local municipal taxes if within incorporated areas. The state requires collection of sales tax on short-term rentals at rates around 7.25-10.75% depending on local additions, while El Dorado County imposes its transient occupancy tax on stays under 30 days with rates typically ranging from 10-14% of gross rental receipts. These taxes are generally collected by the host at the time of booking or check-in, with Airbnb automatically collecting and remitting certain taxes in some jurisdictions through their platform, though hosts remain responsible for ensuring compliance with all applicable local taxes. Remittance procedures typically require monthly or quarterly filing with the appropriate tax authorities, including the California Department of Tax and Fee Administration for state taxes and El Dorado County for local transient occupancy taxes, with returns due by the last day of the month following the reporting period. Exemptions may apply for stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organizations, though documentation requirements vary by jurisdiction and hosts should verify current rates and procedures as they can change annually.

The total cost to start an Airbnb in Coloma, California would be approximately $485,000-$565,000. Property purchase costs around $400,000-$450,000 based on median home prices in rural El Dorado County. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees including business license, transient occupancy tax registration, and potential conditional use permits cost $1,500-$2,500. Annual insurance including liability and property coverage runs $3,000-$4,000. Utility setup and deposits for electricity, water, gas, internet, and cable total $1,000-$1,500. First six months operating costs including utilities ($1,800), cleaning supplies and services ($2,400), maintenance and repairs ($2,000), property management software ($300), and marketing ($1,500) add approximately $8,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $10,000-$15,000 to initial capital requirements.

Airbnb properties in Coloma, California show moderate profitability potential with average daily rates ranging from $150-250 during peak seasons (May-September) when river rafting and outdoor activities drive tourism demand. Properties typically achieve 40-60% occupancy rates annually, generating gross revenues of $25,000-45,000 for well-positioned cabins and vacation homes near the American River. Operating expenses including cleaning fees ($75-100 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($1,500-3,000 annually), and maintenance average 45-55% of gross revenue. Net profit margins typically range from 15-25% for owner-operated properties, with successful hosts like those managing riverside cabins reporting annual net profits of $8,000-15,000 per property. Key success factors include proximity to American River recreation areas, professional photography showcasing outdoor amenities, competitive pricing during Gold Country tourism seasons, and maintaining high cleanliness standards for the outdoor adventure traveler demographic. Properties offering unique features like hot tubs, fire pits, or direct river access command premium rates and achieve higher occupancy, with some hosts reporting profit margins exceeding 30% during 2022-2023 when outdoor travel surged post-pandemic.

Airbnb investments in Coloma, California typically generate annual ROI of 12-18% due to the area's proximity to outdoor recreation activities along the American River and gold country tourism. Cash-on-cash returns generally range from 8-14% annually, with properties near river access and historic attractions commanding premium rates of $150-250 per night during peak season (May-September). Initial profitability usually occurs within 18-24 months, assuming 60-70% occupancy rates and average daily rates of $120-180. Properties requiring minimal renovation in established neighborhoods like those near Marshall Gold Discovery Historic Park tend to reach break-even faster, while fixer-uppers may take 30-36 months to achieve positive cash flow. The seasonal nature of tourism means Q2-Q3 generates 65% of annual revenue, with winter months seeing occupancy drop to 25-35%, making cash flow management critical for sustained profitability.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Coloma, California, using data analytics and market insights. Local real estate agents specializing in Airbnb investments in the area include Gold Country Realty Group and Sierra Nevada Properties, both established around 2015-2018 and familiar with El Dorado County's vacation rental regulations. National services like Awning (founded 2020), Mashvisor (2014), and AirDNA (2015) provide market analysis and property identification tools for the Coloma market. RedAwning and Vacasa offer full-service property management for investors, while local companies such as American River Vacation Rentals and Placerville Property Management specialize in the Gold Country region. Additional national platforms include BiggerPockets for networking with local investors, Roofstock for turnkey rental properties, and HomeUnion for investment property acquisition services, all of which have expanded into smaller California markets like Coloma since 2016-2019.