Gilroy, California Short-Term Rental Market
Gilroy, CA short-term rentals averaged $200/night at 83.3% occupancy in June 2026, up 17.2% in ADR.
Quick Answer: Gilroy, California is an active short-term rental market. average occupancy in the San Jose/Palo Alto market area is 83%. average monthly revenue in the San Jose/Palo Alto market area is $4,207. average daily rate in the San Jose/Palo Alto market area is $200.
Market data reflects the San Jose/Palo Alto regional market, which includes Gilroy. Regulations, taxes, and permit details below are specific to Gilroy.
Market Overview
Gilroy markets itself as the Garlic Capital of the World and draws primarily regional day-trip and weekend visitors from the greater San Francisco Bay Area and Silicon Valley. In June 2026, the most recent month with data, Gilroy’s STR market averaged 83.3% occupancy (down 1.5% year over year) and a $199.53 average daily rate (up 17.2% year over year). Average monthly revenue per listing was $4,207, up 9.7% year over year, meaning rate growth more than offset the modest occupancy decline.
RevPAR (revenue per available listing-night) was $166.26 for the month.
Major visitor draws include Gilroy Gardens theme park, the Gilroy Premium Outlets shopping center, Santa Clara Valley wineries along Hecker Pass, a historic downtown, and the Taco Trail. The Gilroy Garlic Festival, the city’s marquee event, returned in a smaller ticketed format for July 24-26, 2026 at the Hecker Pass Outdoor Events Center. Visitor mix skews toward theme-park visitors, outlet shoppers, food and wine tourists, and outdoor recreation seekers in the surrounding hills. A California Welcome Center in Gilroy also serves regional travelers passing through on Highway 101.
StaySTRA does not currently have bedroom mix, channel split, listing-type counts, or property-manager data for Gilroy; that dimension and PM data is tracked at a shared regional level rather than for this specific market, so this profile omits those breakdowns rather than guessing.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 65% |
| Feb | 70% |
| Mar | 70% |
| Apr | 68% |
| May | 75% |
| Jun | 81% |
| Jul | 80% |
| Aug | 74% |
| Sep | 70% |
| Oct | 70% |
| Nov | 66% |
| Dec | 62% |
Month-by-month nightly rates and revenue figures for Gilroy are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Gilroy — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Gilroy permits short-term rentals (stays under 30 days) but treats operators as lodging businesses rather than running a dedicated STR permit scheme. To operate legally, hosts must obtain a City of Gilroy business license (administered by HdL) and complete a Lodging Operator Registration Form to open a Transient Occupancy Tax account with the Finance Department.
Operators must collect an 11% total guest tax, a 9% Transient Occupancy Tax plus a 2% Tourism Business Improvement District assessment, and report and remit it quarterly. Gilroy’s 9% TOT is described as among the lowest in Santa Clara County, and the City Council has publicly discussed raising it.
A key restriction: accessory dwelling units and junior ADUs cannot be used as short-term rentals. State-compliant Gilroy ADU rules impose a 30-day minimum rental term, enforced via a recorded deed restriction. For standard single-family homes, there is no explicit annual night cap, no owner-occupancy mandate, and no primary-residence requirement found in city guidance, though a local emergency contact is expected. Enforcement is primarily complaint and nuisance-driven (noise, parking, trash, over-occupancy), with fines available for repeat problems.
Effective August 1, 2026, Airbnb will automatically collect and remit both the TOT and TBID to the City of Gilroy for qualifying bookings, reducing the filing burden on hosts using that platform.
Market Comparison
Gilroy’s 83.3% occupancy in the latest month runs well above the roughly 55% occupancy typically cited as a national STR median, while its $199.53 ADR is close to, but slightly below, the roughly $220 national median ADR figure often cited for the US market. That combination, high occupancy at a near-national-average rate, suggests a market with strong booking demand that hasn’t yet fully captured the pricing power its occupancy would typically support, though the 17.2% year-over-year ADR growth suggests that gap may be closing.
Property manager and top-operator data is not currently available for Gilroy, so this profile does not name specific operators or listing counts here.
For broader context, Gilroy’s 9% Transient Occupancy Tax (part of its combined 11% guest tax rate) is described locally as among the lowest in Santa Clara County, and the City Council has discussed raising it, a policy detail worth watching given its potential to affect future net returns.
Frequently Asked Questions About Gilroy, California
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