Is Fresno the Best Kept Secret for Airbnb Investors in 2025?

While the investors might overlook it! Fresno, California, is known for being an attractive, lower barrier-to-entry short-term or STR market with a very consistent demand.  

The primary appeal of the city is its role as the strategic basecamp for three national parks:  

1. Yosemite  

2. Squoia  

3. Kings Canyon 

In addition to that, Fresno functions as a crucial hub for traveling medical professionals serving all the major facilities, like Valley Children’s Community Regional Medical Center (CRMC) 

The current market snapshot (2025 data) 

The recent data indicate robust performance driven by the dual demands!  

Average Daily Rate (ADR): Rates may vary widely! The peak season averages frequently exceed $300 per night. This is significantly higher than the off-peak lows.  

Average occupancy rate: It is typically around 40% or 50%. The significant seasonal spikes begin in May and June. This mainly occurs due to park traffic.    

Revenue growth: The market has demonstrated strong, consistent growth, driven by its unique strategic position.    

Best places to invest Fresno always offers a very compelling alternative to more saturated coastal markets. This helps in presenting unique investment opportunities with more reliable demand drivers.  

Fresno Short-Term Rental Rules & Regulations: What Investors Must Know 

To operate a short-term rental rules Fresno, you need to understand and follow all applicable laws and regulations. 

Don’t worry! Through this guide, we will walk you through everything that you need to know about Fresno Airbnb investment, which includes: 

• Permit process 

• Taxes  

• Using Accessory Dwelling Units (ADUs) 

The Permit Process Simplified 

The first critical step would be to get your STR. The process is straightforward. However, one key rule impacts how you can invest!  

The Golden Rule 

As the property owner, you need to hold the STR permit. This is something very necessary! It means that you are an arbitrage investor, someone who leases a property and then re-rents it on AirBnB.  

This business model is much harder to implement legally in Fresno, because you do not own the property.  

Cost: The application and permit fees are very low! Somewhere around $50. This has much lower barriers to entry compared to cities such as Los Angeles and San Francisco.  

Renewal: You need to renew your permit each year to remain valid.  

Understanding The Taxes (TOT & TBID) 

When you run an STR, you need to collect and pay taxes on the rent you charge. These are standard for the hotel and short-term stays.  

• Transient Occupancy Tax (TOT): You need to charge atleast 12% tax on the rent.  

• Tourism Business Improvement District Tax (TBID): There is an additional 2% tax for you to collect.  

• Platform collection: yes! Good News! There are major platforms, such as Airbnb and VRBO, that can automatically collect taxes.  

They collect the full 14% from guests and pay it directly to the City of Fresno on your behalf.  

However, if you accept direct bookings without using any platform, you are responsible for collecting and paying these taxes yourself.  

The ADU Grey Area 

Accessory Dwelling Units (ADUs), also known as granny flats or backyard cottages, are most popular for their potential to increase rental income. Fresno allows ADUs, but using the Fresno ADU rules for short-term rentals is a grey area.  

The main issue is that while ADUs are legal to build and rent out in Fresno! You must verify the specific zones for your properties.  

You have to check if the properties allow for “transient use. This means it stays under 30 days.  

State vs. local law 

California State Law generally encourages ADUs. These can be used for long-term housing to help with the housing crisis.  

This means that even if a local zone allows it, the city might impose specific restrictions! Or they may deny the transient use permit for an ADU.  

Your Action 

Before you plan an STR in an ADU, you need to contact the City of Fresno Planning Department directly to confirm that short-term rentals are permitted on your specific property’s zoning.  

What Are The Top Neighborhoods For Fresno Airbnb investment?  

If you plan to invest in Fresno short-term rentals (STR), it is better to choose a few neighborhoods that suit the various types and then base your strategy on them.  

The main factor in achieving success is to align your house with the typical tenant profile in each region.  

Here are the best neighborhoods for Airbnb in Fresno that you must check out!  

1. Woodward Park & North Fresno (The “Family Basecamp”)  

This region is the best for kids and parents and delivers a more suburban and relaxed atmosphere.  

Tenant Profile: The majority of your tenants will be families visiting nearby National Parks (Yosemite, Sequoia, Kings Canyon) or the parents of Fresno State University students. They are usually searching for safety and family-friendly facilities.  

Your Strategy: Go for more spacious homes with 3 or 4 bedrooms and a pool. Properties with such features as a swimming pool and a large yard are in high demand here. Work on making it a calming and family-friendly place.  

2. Tower District (The “Culture & Nightlife” Hub)  

The Tower District is Fresno’s colorful arts and culture center, mainly due to its old theaters, various restaurants, and lively atmosphere.  

Tenant Profile: Guests in your rental will most likely be young tourists, couples on a weekend trip, or people attending festivals and events in the area.  

They will be looking for a place that is near everything but still has a good nightlife.  

Your Strategy: Here, smaller bungalows with 1 to 2 bedrooms or vintage apartments are the best choice.  

Get ready for high turnover, as guests usually stay only a short time. Let the neighborhood’s unique, old-world charm shine through in your decor and listing description. 

3. Downtown & Medical Centers (The “Mid-Term” Hybrid)  

The central region not only offers city amenities but also a strong professional community.  

Tenant Profile: The majority of your tenants will be traveling nurses, doctors, or corporate consultants.  

They will work at facilities near Community Regional Medical Center (CRMC) and others.  

Your Strategy: Concentrate your search on clean, secure 1-bedroom condos or apartments. It is a wise move to pursue “Mid-Term” rentals (stays of 30 days or longer).  

In this case, you will not need to collect and pay the 12% Transient Occupancy Tax (TOT) and the 2% Tourism Business Improvement District (TBID) tax.  

This will not only ease your operations but also increase your net revenue from longer stays. 

Analyzing Airbnb ROI In Fresno 

To figure out the potential return on investment (ROI) in the Fresno Airbnb market, you must compare the property costs with the income you can get.  

The market has distinct advantages over pricey coastal cities, but planning for seasonal shifts in demand is necessary. Below is a brief overview of the crucial elements for the Airbnb ROI analysis in Fresno:  

Revenue vs. Costs & ROI Advantage  

• Median Home Prices: A suitable STR property will cost around $400,000 to $550,000.  

• Annual Revenue Potential: You can earn $25,000-$45,000 per year, depending on management and location.  

• Cash-on-Cash Return: Fresno’s ROI is more favorable than that of pricey coastal cities because lower property prices enable a larger initial Fresno Airbnb investment.  

Seasonal Trends  

• Peak Season: Demand is highest from May to July due to National Park visitors, who will also pay more and occupy more.  

• Low Season: January is the month with the least activity, so you need to either cut down on cash flow or pivot your strategies (for example, by targeting mid-term rentals) to keep occupancy high. 

Risks And Challenges To Consider 

Putting money in Fresno is not without its drawbacks. However, some challenges are easier to overcome with planning.  

Potential climate change and new laws are among the challenges investors must address.  

The “Heat” Factor  

The summer season in Fresno is unbelievably hot, with the thermometer often reading above 100°F.  

The furnace is a critical challenge for the business. HVAC Needs: The air conditioning system will work doubly hard.  

You need to invest in powerful, state-of-the-art HVAC units and have a robust maintenance plan in place.  

A malfunction during a heat wave will lead to immediate cancellations and all the negative reviews you can imagine.  

Pools: On the one hand, a pool gives the property a special appeal to customers who want to come in to escape the heat, but on the other hand, it comes with significant maintenance costs (such as chemicals, cleaning, and water). So do not forget to include this when planning your expenditure.  

Regulatory changes  

The legal environment for short-term renting may be quite unstable. The city of Fresno is very involved in working on its housing elements and ordinances.  

Besides, the City Council is already working on 2025 amendments to ease the eviction process for STR owners, who are directly affected by these issues.  

So, we recommend you stay up to date on the regulatory landscape affecting the properties you manage, the tenants you screen, and even the taxes you pay.  

Official updates from the City of Fresno website are the ones you need to monitor to ensure your Fresno Airbnb investment stays legal and profitable.  

The housing market, particularly the rental segment, is high on the local government’s agenda, suggesting that further changes may be on the way in late 2025 and beyond. 

What Are The Steps To Launch Your Fresno Airbnb?  

When setting up your Airbnb in Fresno, you need to pay attention to a few important steps.  

Consequently, with this effortless strategy, you could make your property accessible to tourists quickly and without breaking any laws.   

These are the steps you have to take:  

Market Research 

First, conduct a market survey. Take advantage of data analysis tools like AirDNA or Rabbu to gain insights into 

1. The most profitable properties,  

2. The most competitive nightly rates, and  

3. The most popular amenities among guests in Fresno.  

This will allow you to make wise Fresno Airbnb investment choices.  

Acquisition 

If you are going to buy a property, be sure that it is in a location that has already been designated for short-term rentals (zoning is correct).  

Confirm the specific zoning with the City Planning Department before closing the deal. 

Permitting 

Submit your application for the STR Permit to the City of Fresno. Generally, you can do this either online or in person at City Hall. Do not forget that you must be the property owner to obtain this permit.  

Listing 

Hire a professional photographer to photograph your property. Use words and photos in your listing.  

These can help you to emphasize that you are the ideal “basecamp” for exploring Yosemite, Sequoia, and Kings Canyon National Parks.  

Also, try to include the words visitors use when searching to increase your bookings. 

What Are The Hidden Costs? 

A Fresno Airbnb investment must account for the local climate challenges that often catch investors off guard.  

1. The “100°f Factor” (HVAC & Energy)  

The Realization: Fresno has summer temperatures that are consistently around the century mark, and at times even higher, reaching 100°F to 110°F.  

Your Expenses:  

1. Your air conditioning system will more than likely operate for over 18 hours daily.  

2. Prepare to spend $300 to $500 per month on electricity during the summer, unless you have solar panels installed.  

Your Maintenance: You will need to arrange an HVAC checkup every 6 months (spring and fall).  

A complete AC unit replacement will cost you approximately $4,500 to $6,200. You must always confirm the unit’s age before purchasing a property.  

2. Pool Maintenance Is Not Optional  

The Reality: A swimming pool is great for families visiting Yosemite in July, but it is also a significant expense.  

Your Costs:  

Weekly pool services in and around Fresno will charge you about $130 to $145 monthly.  

3. Landscaping “Fire Season” Prep  

The Reality: The dry summer months mean a very high risk of fire spread in that area.  

Your Move: You should factor in the costs of clearing “defensible space. Cutting back the shrubs and trees surrounding the house to meet your insurance company’s requirements and secure your Fresno Airbnb investment will be necessary.  

How To Mitigate All Ther Risks Related To Crimes And Parties?  

Fresno’s safety is always one of the primary questions raised by people unfamiliar with the city.  

The trust-building process for a landlord starts here, with an honest answer and preventive measures to address the noise issue.  

1. Red Zones Navigation  

Do not rely on broad neighborhood designations such as “Tower District.” Instead, you should study the particular blocks.  

Your recommendation: check the online crime maps (like ADT or SpotCrime) to find out about the safety in the exact location of any property you are considering.  

A basic guideline: Places above Shaw Avenue are usually considered safer and more suitable for kids. Investments south of Shaw Avenue demand thorough research, block by block, to determine the level of risk.  

2. House Of Parties Prevention Plan  

Noise-laden parties could be a downside of short-term rentals and attract noise complaints from neighbors, which in turn could lead to the booking being canceled.  

Your Knowledge of Regulations: Fresno County has just passed a tough noise control regulation. Noise violations will lead to a $250 fine and a maximum of $1,000 for repeat offenders.  

Your Rights: You can avoid problems that would have required dealing with noise complaints by using sound-monitoring systems such as NoiseAware or Minut.  

These devices monitor the noise level in your home (they do not listen in) and send you an alert when the sound becomes really loud.  

This can give you time to defuse the situation before the neighbors call the police. 

Building A Strong “Boots On The Ground” Team  

The majority of Fresno’s property investors are not residents of the area and, therefore, are unable to inspect their properties in person.  

A dependable local team is a must for you to establish. You have two major management options:  

• Full Service Or A Hybrid Model.  

• Full Service Options (No Involvement)  

These are the options that suit you if you do not want any involvement in the daily administration.  

• Grand Welcome / Utopia: These are the companies that are perfect if you want a completely hands-off option.  

• One Fine Bnb: This service is best if guest screening is your main concern, to keep out parties and prevent property damage.  

• Your Costs: Be ready for the property management fee, which is normally, 20% to 30% of your rental income, definitely more than the other alternatives.  

The “Hybrid” Model (Higher Profit)  

The hybrid model gives you greater say and usually leads to a higher return on investment (ROI).  

Evolve / RedAwning: The picture these sites help you with is the booking and marketing part, which are the most important.  

Your Costs: They charge lower, about 10% to 15%.  

The Responsibility: Finding and supervising your local cleaning crew, and hiring a good maintenance worker for repairs, is your responsibility.  

Your Recommendation: The hybrid model could be a good choice if you can put together a trustworthy team of local cleaners.  

Software and applications can assist in locating and overseeing these teams effectively.  

Disclaimer: The information provided here is meant to be educational and informative only, and is not financial or investment advice. Always seek the counsel of a professional financial advisor before making any investment decisions. 

The Exist Strategy 

Smart investors are always thinking about the “worst case scenario” when they ask, “What if the city bans short-term rentals (STRs) next year?” You need a backup plan B to save your money.  

1. Long-Term Rent vs. Your Mortgage  

The first thing to do is to make sure your property remains lucrative, at least as a long-term rental (LTR). In other words, it still makes financial sense.  

• Your Analysis: You have to put the average LTR rent in your area side by side with your monthly mortgage payment.  

• The Data: Average LTR rents in North Fresno are about $2,300 to $2,800.  

• The Risk: In case your mortgage payment is $3,500, you are “STR Dependent.”  

This is a dangerous situation because you are relying entirely on the short-term rental’s high income to cover your expenses.  

2. The “Traveling Nurse” Pivot  

If local rules regarding short-term rentals change or permits are revoked, you can be sure you have a solid Plan B.  

The traveling nurses who work long hours on demanding shifts prioritize rest, safety, and convenience. They can benefit from this!  

Your Plan: You can switch your property over to a mid-term rental (MTR) market. Such a market has a “regulation-proof” character. 

It permits leases of 30 days or more that are usually treated the same as traditional long-term housing.  

You can advertise your property to traveling nurses working at the nearby Community Regional Medical Center (CRMC) or other hospitals around the area. This is a sure, high-demand market that acts as a safety net for your investment.