Morgan Hill, CA

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Morgan Hill short-term rental market based on reliable data.

Listings

20 / 59

Reliable / Active

Cap Rate

2%

Middle-Earners Gross Yield

Revenue

$31,802

Middle-Earners Revenue

Occupancy

52%

Middle-Earners Occupancy

Home Value

$1,352,737

Median Home Sale Price

Top Earners

$71,564

Top-Earners Revenue

Morgan Hill

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Morgan Hill.

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A

Very Investor friendly

Morgan Hill Regulations

STRs are clearly permitted citywide, require only a simple Finance Department registration and no stated caps, and compliance hinges on routine transient occupancy tax and TBID collection—evidence of a clear, low-burden, investor‑friendly approach.

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About Morgan Hill

Morgan Hill is a sun-drenched city of roughly 47,000 residents tucked into the southern reaches of Santa Clara County, California, where the rolling foothills of the Diablo Range meet the northern edge of the Santa Cruz Mountains. The city has cultivated a relaxed, small-town atmosphere that feels a world away from the congestion of the Bay Area, even as it sits only about 25 miles south of San Jose and roughly 75 miles south of San Francisco. Morgan Hill is best known for its pleasant climate, its annual Mushroom Mardi Gras festival celebrating the region's agricultural roots, and its growing reputation as a wine-tasting destination along the Santa Clara Valley wine trail. It also serves as a convenient gateway to the Monterey Bay region, the redwood forests of the Santa Cruz Mountains, and the wider Central Coast beyond.

A stroll through Downtown Morgan Hill reveals the heart of the community, where century-old brick storefronts have been refreshed into a lively cluster of independent boutiques, tasting rooms, bakeries, and farm-to-table restaurants lining Monterey Road and Third Street. From the downtown core, visitors can sample many of the wineries in the surrounding countryside within a 10-to-15-minute drive, including estate vineyards along the scenic corridor of Watsonville Road and Hecker Pass, where cool coastal breezes and decomposed granite soils produce highly regarded Pinot Noir and Chardonnay.

Outdoor recreation anchors much of the area's appeal, beginning with Henry W. Coe State Park, one of the largest state parks in northern California. Just a few miles east of town, Coe offers more than 87,000 acres of wild backcountry threaded with over 250 miles of hiking, horseback-riding, and backpacking trails that climb through oak woodlands, chaparral, and high ridgelines with sweeping views toward the Central Valley. Closer to home, Uvas Canyon County Park sits about 15 minutes southwest of Morgan Hill and rewards visitors with shaded creekside trails, small waterfalls, and lush redwood groves that feel a surprising world apart from the city's dry golden hills.

To the north, Anderson Lake County Park provides a popular spot for picnicking, kayaking, and fishing just a short drive from downtown, while the broader South Bay and Monterey Bay coastline—think Santa Cruz, Capitola, and the beaches of Aptos—are all reachable in roughly 45 to 75 minutes via Highway 101 or the winding back roads over Hecker Pass.

Morgan Hill's combination of small-town charm, wine country credentials, and easy access to both Silicon Valley employment centers and the natural wonders of the Bay Area and Central Coast make it a particularly compelling base for short-term rentals. Guests can spend the morning hiking in Coe State Park, the afternoon sipping wine along the Santa Clara Valley trail, and the evening dining on a sunlit patio downtown, all without ever feeling rushed. That variety, paired with the city's walkable core and proximity to some of California's most iconic landscapes, gives owners a steady stream of weekend travelers, wine tourists, families visiting the region, and Silicon Valley visitors seeking a quieter alternative to the usual urban stays.

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