Single atom catalysts (SACs) have demonstrated great potential in detection of toxic volatile organic compounds (VOCs) because of their high catalytic efficiency and unique electronic and chemical properties. In this study, we report an extremely sensitive and selective formaldehyde gas sensor based on single atom Rh-sensitized SnO2 nanoparticles prepared by atomic layer deposition (ALD). Gas sensing investigations demonstrate that the SnO2/Rh sensor has a response of 36.3 to 20 ppm formaldehyde, showing a nearly 23-fold enhancement over pure SnO2, as well as high sensitivity, fast response-recovery time (4–29 s) and excellent selectivity. DFT calculations reveal that the atomic Rh dramatically increases the adsorption and charge transfer between formaldehyde molecules and SnO2. By using the developed sensor, a portable formaldehyde detection device has been designed, which indicates a great prospect of our strategy in practical sensors.