A highly sensitive impedance sensor operating at room temperature has been developed for the quantitative determination of formaldehyde vapor. Nanostructured zinc oxide (ZnO) was synthesized by chemical reduction and used, in the form of a pellet, as the sensing material. Its performance was compared to that of the pellet made from commercial ZnO. Both samples were characterized by X-ray diffraction, Fourier transform infra-red spectroscopy, ultraviolet–visible spectroscopy, and atomic force microscopy techniques. Changes in impedance caused by formaldehyde in the concentration range from 100 to 800 ppm were measured and Nyquist plots revealed a systematic variation in impedance. The sensor response and formaldehyde concentration are exponentially correlated for both the laboratory synthesized and commercial ZnO samples. However, the lab-synthesized sample displays a better performance in terms of sensitivity, response, recovery, and stability. In addition, the response of the lab-synthesized sample is less sensitive to interferences by reducing gases such as ammonia, ethanol, methanol, and propanol.