Los Gatos, California Short-Term Rental Market
Los Gatos area STRs averaged $154/night at 69.4% occupancy in April 2026, with revenue growing 2.1% year over year.
Quick Answer: Los Gatos, California is an active short-term rental market. average occupancy is 83%. average monthly revenue is $4,205. average daily rate is $200. the top operator is Blueground with 447 listings. market score is 91/100 (grade A).
Market data reflects the San Jose/Palo Alto regional market, which includes Los Gatos. Regulations, taxes, and permit details below are specific to Los Gatos.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Los Gatos is a high-income Silicon Valley community at the southern edge of Santa Clara County, within the broader San Jose metropolitan area. The short-term rental market in this area spans a mix of entire-place and private-room listings across Silicon Valley’s residential neighborhoods, shaped by both business travel demand (convention traffic, tech sector extended stays) and leisure visitors.
The market totals approximately 8,632 listings: 5,167 entire-place (59.9%), 3,333 private rooms (38.6%), and 132 shared rooms. The higher share of private-room listings (38.6%) is above average for California markets and reflects Silicon Valley’s corporate housing and co-living demand.
In April 2026, the all-listings average daily rate was $153.51 and occupancy reached 69.4%, generating a RevPAR of $106.47 and average monthly revenue of $3,014. Year over year, occupancy edged up 0.2 percentage points, ADR grew 2.7%, and revenue grew 2.1%, a positive trend across all three indicators. Airbnb accounts for 6,541 exclusive listings, VRBO for 295, and 1,796 appear on both platforms. By bedroom count, 1-bedroom units dominate at 5,611, followed by 2-bedroom (1,419), 3-bedroom (821), 4-bedroom (495), and 5-bedroom or larger (270). The market’s StaySTRA total score is 90.7 out of 100, among the highest in California, driven by rental demand (89.5) and revenue growth (90.5) sub-scores.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 65% | $128 | $2,293 |
| Feb | 70% | $131 | $2,301 |
| Mar | 70% | $133 | $2,532 |
| Apr | 68% | $133 | $2,478 |
| May | 75% | $139 | $2,687 |
| Jun | 81% | $151 | $3,159 |
| Jul | 80% | $139 | $3,079 |
| Aug | 74% | $139 | $2,773 |
| Sep | 70% | $139 | $2,593 |
| Oct | 70% | $138 | $2,671 |
| Nov | 66% | $136 | $2,450 |
| Dec | 62% | $137 | $2,404 |
Top Short-Term Rental Operators in Los Gatos
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Blueground | 447 | 198 | ★ 4.29 |
| 2 | Hosteeva | 117 | 191 | ★ 4.02 |
| 3 | Cloud Living Furnished Rental Spaces | 91 | 2,351 | ★ 4.82 |
| 4 | Global Luxury Suites | 83 | 789 | ★ 4.15 |
| 5 | Host / Serena | 49 | 573 | ★ 4.85 |
What Kind of STR Should I Buy in Los Gatos?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 5,611 |
| 2 bed | 1,419 |
| 3 bed | 821 |
| 4 bed | 495 |
| 5 bed | 270 |
ADR by Property Tier
| Entire Home | $284 |
| Luxury | $395 |
| Professionally Managed | $271 |
Revenue by Dwelling Type
| Apartment | $4,410 |
| Entire Place | $5,620 |
| House | $4,180 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 75.8% |
| vrbo | 3.4% |
| both | 20.8% |
Investment Analysis
Los Gatos and the broader Silicon Valley market present a distinctive investment profile: high occupancy, growing revenue, but extremely high home values that compress gross yield significantly. The typical home value in this market area is $2,705,565 (Zillow estimate, April 2026 snapshot), and the median sale price is approximately $2,365,000.
At April 2026’s average monthly revenue of $3,014, an investor projecting $36,171 in annualized gross revenue against a $2,705,565 typical home value would see an implied gross yield of approximately 1.3% before expenses, management fees, and vacancy. Even entire-place listings averaging $4,015 per month ($48,180 annualized) would yield approximately 1.8% gross against the typical home value.
The tier structure shows meaningful rate differentiation: the all-listings ADR of $153.51 rises to $211.66 for entire-home listings, $204.02 for professionally managed properties, and $267.70 for luxury-tier units. The luxury-tier premium of 74.4% over the market average is substantial, and the entire-home tier commands a 37.9% premium.
The market’s investability sub-score of 44.6 (the lowest sub-score) correctly reflects the yield compression from high acquisition costs. The revenue growth sub-score of 90.5 and total market score of 90.7 reflect the demand quality of the market, not its investment yield. Investors in this market are typically acquiring for long-term appreciation and using STR income as a partial offset to carrying costs rather than as a primary yield strategy.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Los Gatos area guests book an average of 26.2 days in advance, one of the shorter planning horizons among California STR markets. This compressed window reflects the market’s large share of last-minute and corporate bookings from Silicon Valley’s business traveler segment, which tends to book closer to the stay date than leisure travelers.
Average length of stay is 6.56 nights, the longest of any market in this batch and well above the national STR average. This extended average stay reflects Silicon Valley’s significant furnished corporate housing and extended-stay demand. A 6.6-night average suggests that many guests are booking week-long stays for training programs, interview trips, project sprints, or temporary housing between assignments.
For pricing strategy, the 26-day booking window means dynamic pricing signals from 3-4 weeks out are the most actionable. The long average stay (6.56 nights) makes weekly pricing structures effective: properties priced competitively for 7-night blocks will likely capture the dominant booking archetype. Minimum stay policies of 5-7 nights would align with this market’s booking pattern and significantly reduce turnover costs.
Short-Term Rental Regulations
The Los Gatos area falls within Santa Clara County, and the primary regulatory framework in this market area is the City of San Jose’s STR ordinance (Title 20, Section 20.80, Part 2.5 of the Municipal Code). The property must be the operator’s primary residence, defined as the location where the operator lives for at least 60 consecutive days per year. Non-hosted rentals (host not present) are capped at 180 nights per calendar year; hosted rentals (host present on-site) have no annual night cap.
There is no separate STR-specific permit; operators must obtain a City of San Jose Business Tax Certificate within 90 days of beginning rentals. The fee for this certificate is not published in the current dataset. A 10% Transient Occupancy Tax applies to all stays of 30 nights or fewer; platforms such as Airbnb collect and remit TOT on behalf of registered hosts. Operators must designate a local contact reachable within one hour and maintain rental records for three years.
Accessory dwelling units are explicitly prohibited from STR use under San Jose’s code. Non-residential structures and non-primary-residence properties are not eligible for STR use under the city’s ordinance.
Los Gatos as a separate incorporated town may have its own specific STR rules distinct from San Jose; operators with properties in the town of Los Gatos proper should verify current requirements with the Town of Los Gatos directly. Enforcement is rated moderate and is primarily complaint-driven.
Market Comparison
The Los Gatos area’s April 2026 occupancy of 69.4% is well above the US STR median of approximately 55%, and its revenue growth of 2.1% year over year is a positive signal in a period when many markets are experiencing ADR compression. The ADR of $153.51 is below the US median of approximately $220, but this reflects the market’s high share of private-room and corporate-rate listings rather than lower hospitality quality.
The market’s total StaySTRA score of 90.7 out of 100 is among the highest in the state, driven by revenue growth (90.5) and rental demand (89.5) sub-scores. The investability sub-score of 44.6 is the market’s weakest point, accurately capturing the yield compression from one of the most expensive housing markets in the country.
Among professional operators, Blueground leads with 447 listings and 198 reviews (4.29 average rating). Blueground’s relatively low review count relative to its listing volume is typical for furnished corporate housing providers that service longer-term business travelers who review less frequently. Hosteeva manages 117 listings (4.02 rating), Cloud Living Furnished Rental Spaces manages 91 listings with 2,351 reviews (4.82 rating), Global Luxury Suites manages 83 listings (4.15 rating), and Host/Serena manages 49 listings (4.85 rating). The top 5 operators collectively manage 787 of approximately 8,632 total listings, representing about 9.1% of market inventory.
Frequently Asked Questions About Los Gatos, California
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