If you are looking at the Sacramento region from the outside, real estate in El Dorado Hills (EDH) usually pops up as the "gold standard" for suburban living. But if you’re asking if it’s expensive, the short answer is yes—especially relative to the rest of the Central Valley. It is widely considered one of the region’s most affluent areas, with median household incomes significantly higher than the California average.
However, the "sticker price" of the home is only half the story. While median home prices often hover between $975K and $1M+, which might look like a bargain to transplants from the Bay Area, the ongoing cost of living is where things get tricky. When you factor in specific local costs like Mello-Roos bonds and rising fire insurance premiums, the monthly bottom line can surprise you. Let's break down what it actually costs to live here so you can decide if the lifestyle is worth the premium.
Housing Costs: The Biggest Expense
Housing is naturally the largest factor driving the "expensive" reputation of El Dorado Hills. Whether you are buying or renting, you are paying for the zip code, the school district boundaries, and the exclusive feel of the community.
If you are looking to buy, the entry-level market has shifted dramatically in recent years. While you can still find townhomes or older properties for less, a standard family home generally falls between $900K and $1.5M. If you are eyeing those custom estates with sweeping views of Folsom Lake or the valley, prices easily push well over $2M.
The rental market is equally competitive. Because many people move here to "test drive" the area before buying, inventory can be tight.
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Buying: Expect a median sold price around $975,000 – $1,000,000.
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Renting Houses: A typical 3-4 bedroom home usually rents for $3,000 – $4,500 per month depending on the neighborhood.
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Apartments: One-bedroom units generally average around $2,200 – $2,400 per month.
The Hidden Costs: Mello-Roos & Tax Rates
One of the most confusing aspects for newcomers to homes for sale in El Dorado Hills is "Mello-Roos." If you aren't careful, this can add a significant chunk to your monthly mortgage payment.
Mello-Roos is a special tax assessment layered on top of the standard 1% property tax. It is used to fund local infrastructure like new schools, roads, and parks. In El Dorado Hills, there is a clear divide:
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Newer Communities: Master-planned areas like Blackstone, The Promontory, and much of Serrano almost always have Mello-Roos fees.
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Older Neighborhoods: Areas like Governor's Village or St. Andrews often do not have these fees because the infrastructure was paid off long ago.
The cost impact is real. Depending on the specific village you choose, Mello-Roos can add anywhere from $200 to over $500 per month to your tax bill. When calculating your affordability, you have to look beyond the list price and ask specifically about the tax rate. In some newer builds, the effective tax rate can exceed 1.5% to 1.8%.
Fire Insurance: The "Wildcard" Expense
If there is one cost that catches buyers off guard more than any other right now, it is fire insurance. Because El Dorado Hills is located in the foothills, many neighborhoods are designated as High Fire Severity Zones.
This geography means standard insurance carriers may deny coverage, forcing residents to use the "CA FAIR Plan," which is the state's insurer of last resort. The price difference between here and the flatlands is stark. A home down the hill in Folsom might cost $1,200 a year to insure. A similar home in the higher elevations of El Dorado Hills could easily cost $4,000 to $8,000 per year.
Before you fall in love with a property, checking the specific fire score of that address is essential. It is not uncommon for insurance costs to impact a buyer's qualifying ratios for a mortgage.
Utilities and HOA Fees
Beyond the mortgage and taxes, your monthly operational costs will likely be higher here than in neighboring cities.
The biggest factor is electricity. El Dorado Hills is serviced by PG&E. Rates for PG&E are significantly higher than SMUD, which services Sacramento County (including Folsom). In the peak of summer, cooling a large two-story home can lead to electric bills averaging $500+ if the home doesn't have solar.
Here is a quick glance at what to expect for monthly overhead:
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Electricity: Avg $266/mo (varies wildly by season and solar availability).
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Water: EID (El Dorado Irrigation District) rates generally run higher than Sacramento County water.
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HOAs: Gated communities are common here. In places like Serrano or Blackstone, HOA dues typically range from $100 to $400+ per month.
Cost Comparison: EDH vs. Nearby Areas
To understand the value, you have to compare El Dorado Hills to its neighbors.
Vs. Folsom: Generally, Folsom is cheaper. Homes there cost about 15-20% less, utility bills are lower (thanks to SMUD), and fire insurance is rarely an issue. However, Folsom offers a denser, more suburban feel, whereas EDH leans toward a semi-rural, luxury vibe with more rolling hills.
Vs. Granite Bay: Granite Bay is the other luxury heavyweight in the region. Prices there are comparable to EDH, with estates often starting over $1.05M. The main financial difference is that Granite Bay is an older community, so you will encounter fewer Mello-Roos fees, though the entry price for the home itself might be higher.
Vs. The Bay Area: For anyone relocating from San Francisco or San Jose, El Dorado Hills is undeniably a bargain. You are likely getting a newer, larger home on a bigger lot for 50% less than you would pay in the Bay.
Are There Affordable Neighborhoods in El Dorado Hills?
If you are determined to live here but need to keep costs down, you have to know where to look. The key is usually to target "non-gated" and "non-Mello-Roos" neighborhoods.
Older neighborhoods developed in the 1970s through the 1990s offer lower entry prices and fewer hidden fees. Areas like Governor's Village, Stonegate, St. Andrews, and Fairchild Village are great options. You can often find homes in these pockets in the $650K – $850K range. While that isn't "cheap" by national standards, it is relatively affordable for this specific zip code.
Is the Price Tag Worth It?
So, is the premium worth it? For the residents who choose to stay, the answer is a resounding yes.
You are paying for access to top-tier public schools like Oak Ridge High, which can save families thousands per year compared to private school tuition. You are paying for safety, low crime rates, and impeccably maintained public spaces.
The lifestyle also plays a huge role. With the proximity to Folsom Lake, the rolling scenic views, and the high-end dining and shopping at the Town Center, residents often feel like they are living in a resort town. If your budget can handle the housing, insurance, and utilities, the quality of life in El Dorado Hills is hard to beat.
FAQ
Is El Dorado Hills more expensive than Folsom?
In short, yes. Even if the list prices look similar to high-end Folsom, living in El Dorado Hills usually ends up costing more. You have to account for the 'hidden' extras—higher PG&E rates, those pricey fire insurance premiums, and the fact that Mello-Roos taxes are way more common once you cross the county line.
What salary do you need to live in El Dorado Hills?
For a median-priced home around $975k, most buyers find they need a combined income of at least $150k to $200k. Since monthly payments can easily land between $5,000 and $7,000, lenders will want to see a strong debt-to-income ratio to make sure those numbers don't stretch your budget too thin.
Does El Dorado Hills have Mello-Roos?
Generally, yes—if a neighborhood was built after the 1990s (think Serrano or Blackstone), it likely has Mello-Roos fees. The good news is that older, more established areas like Governor’s Village usually don't have those extra taxes, which is a big draw for buyers trying to keep their property tax bill down.
Is El Dorado Hills considered a wealthy area?
Absolutely. EDH is consistently one of the wealthiest communities in the region. Because it attracts so many high-level professionals and retirees, the median income is significantly higher than what you’ll find in most other parts of the state.
