Los Gatos, CA Airbnb Market Data, Statistics, and Occupancy Rates

Los Gatos Short-Term Rental Market Overview

Los Gatos sits in the heart of Silicon Valley, where a small but growing pool of 68 active Airbnb listings generates an average annual revenue of $40,305 per property. With an average daily rate of $264—well below the California state average of $551—and occupancy running at 47% (above the 43% state average), the market offers relatively accessible pricing for guests while maintaining solid demand. However, average home values near $3.65 million mean investors need to be highly selective in deal sourcing to make the numbers work.

Key Market Statistics

According to Rabbu market data, the Los Gatos short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Los Gatos

Proximity to Silicon Valley's tech corridor and the affluent Bay Area traveler base gives Los Gatos a demand floor that few markets its size can match, though high property costs require careful underwriting.

Expert Market Assessment

"Los Gatos represents a competitive opportunity rather than a straightforward cash-flow play. The market's ROI score of 40 out of 100 reflects a below-average revenue-to-price ratio driven by home values averaging $3.65 million, which makes it challenging to generate returns purely from nightly income. That said, the demand picture is encouraging: occupancy holds above the state average, and revenue peaks meaningfully in June and July (topping $4,400–$4,700 per month) before tapering to the $2,600 range in winter. Investors who can acquire property at favorable terms or who already own in the area are best positioned to benefit from this affluent, amenity-rich market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Los Gatos

Average revenue by month in Los Gatos

Revenue in Los Gatos follows a clear summer-driven pattern, peaking in July at $4,689 and bottoming out in December at $2,583—a spread of roughly $2,100 that investors should factor into cash-flow planning. The May-through-August window accounts for the strongest earning months, while January through April and November through December represent softer periods.

Active Airbnb listings by property size in Los Gatos

One-bedroom listings dominate the Los Gatos supply at 38 of 68 total properties (56%), with only 12 two-bedroom and 11 studio listings rounding out the market. The relative scarcity of 2-bedroom properties, paired with their significantly higher revenue, could signal an undersupplied segment worth targeting.

Average daily rate (ADR) by property size in Los Gatos

ADR scales sharply with size in Los Gatos: studios average $134 per night, 1-bedrooms come in at $197, and 2-bedroom properties command $341—more than 2.5 times the studio rate. The jump from 1-bedroom to 2-bedroom pricing is particularly steep, suggesting guests place a premium on additional space.

Average RevPAN by property size in Los Gatos

Two-bedroom properties deliver the strongest RevPAN at $161, roughly double what studios ($80) and 1-bedrooms ($79) generate. The near-identical RevPAN for studios and 1-bedrooms, despite their different ADRs, highlights how the studio segment's higher occupancy rate compensates for its lower nightly price.

Average occupancy rates by property size in Los Gatos

Studios lead occupancy at 60%, well ahead of 2-bedrooms at 47% and 1-bedrooms at 40%. Investors targeting 1-bedroom units should be aware of the lower fill rate, which may reflect oversaturation given that this size makes up over half the market's supply.

Average monthly revenue by property size in Los Gatos

Two-bedroom listings are the clear monthly revenue leaders at $5,650, nearly double the $2,972 generated by 1-bedroom properties and almost triple the $2,117 earned by studios. For investors focused on maximizing gross income, the 2-bedroom category offers the most compelling top-line performance in this market.

Average annual revenue by property size in Los Gatos

Annually, 2-bedroom properties generate $67,800—nearly 90% more than 1-bedrooms at $35,675 and more than 2.6 times the $25,413 earned by studios. Given the relatively small number of 2-bedroom listings in Los Gatos, this configuration appears to offer the strongest return potential for investors who can secure suitable inventory.

Most common amenities for Airbnb listings in Los Gatos

Parking dominates at 97% prevalence, reflecting the car-dependent nature of Silicon Valley living, while kitchens (85%), patios or balconies (82%), and backyards (79%) signal strong guest expectations for home-like comfort and outdoor space. A workspace amenity in 62% of listings underscores demand from remote workers and business travelers, and investors should consider these features as near-essential rather than optional upgrades.

Understanding Los Gatos's ROI Score: 40/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

With an ROI score of 40 out of 100, Los Gatos falls into the 'Competitive Opportunity' band—meaning demand is real, but high home prices significantly compress potential returns. The below-average revenue-to-price ratio is the primary drag, as properties averaging $3.65 million face a steep climb to cash-flow positivity on $40,305 in annual revenue, while occupancy stability and market growth trends sit in average territory. Investors should pair this data with thorough local regulatory research and focus on sourcing deals well below market averages to make the investment thesis work.

Short-Term Rental Regulations in Los Gatos

Understanding local STR regulations is essential before investing in Los Gatos. Here's the current regulatory landscape:

Permit Requirements

The Town of Los Gatos in California may require short-term rental operators to obtain a business license or STR-specific permit before listing a property. Investors should verify current registration requirements directly with the Town of Los Gatos planning department or the Santa Clara County assessor's office.

Key Restrictions

Common restrictions in California markets like Los Gatos can include occupancy limits, minimum-stay requirements, noise ordinances, parking mandates, and potential HOA restrictions that may prohibit or limit short-term rentals. Some jurisdictions also impose caps on the number of STR permits issued, so checking availability before purchasing is strongly advised.

Tax Obligations

Short-term rental operators in California are typically subject to Transient Occupancy Tax (TOT), and Los Gatos may also require collection of state and local sales taxes on rental income. Platforms like Airbnb often collect and remit some of these taxes automatically, but hosts should confirm their full obligations with a local tax professional.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Los Gatos can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, we expect Los Gatos to maintain its seasonal revenue pattern, with summer months continuing to drive the bulk of annual income and winter months softening toward the $2,600 range. Active listings have grown 114% year over year, which signals rising investor interest but also increasing competition for bookings. ADR could see modest pressure in the 1–3% range as supply expands, though occupancy may hold steady around 45–50% given the area's proximity to major tech employers and Bay Area attractions. Investors entering this market should plan conservatively and account for the pronounced seasonality when projecting cash flow."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Los Gatos, CA

What is the average Airbnb occupancy rate in Los Gatos?

The average Airbnb occupancy rate in Los Gatos is currently 47%, which is above the California state average of 43%. Occupancy varies by property size, with studios achieving the highest rate at 60%, followed by 2-bedroom properties at 47% and 1-bedroom units at 40%. These figures reflect trailing performance and individual results will depend on factors like pricing strategy, listing quality, and seasonality.

How much do Airbnb hosts make in Los Gatos?

On average, Airbnb hosts in Los Gatos earn approximately $3,358 per month and $40,305 per year based on historical 12-month booking data. Revenue varies significantly by property size: studios average $2,117 per month, 1-bedroom listings earn about $2,972, and 2-bedroom properties lead at $5,650 per month ($67,800 annually). Peak summer months like July can push monthly income above $4,600, while winter months typically dip below $2,700.

Is Los Gatos a good market for Airbnb investment?

Los Gatos earns an ROI score of 40 out of 100 from Rabbu, categorized as a 'Competitive Opportunity.' The market benefits from strong demand driven by its Silicon Valley location and above-average occupancy rates, but the high average home value of approximately $3.65 million results in a below-average revenue-to-price ratio. Investors who can source deals creatively or leverage existing property ownership may find solid returns, but the numbers require careful underwriting given the acquisition costs involved.

What is the average daily rate (ADR) for Airbnb in Los Gatos?

The average daily rate for Airbnb listings in Los Gatos is $264, which is notably below the California state average of $551. ADR scales with property size: studios average $134 per night, 1-bedroom units come in at $197, and 2-bedroom properties command $341. This pricing positions Los Gatos as a relatively accessible market for guests compared to other premium California destinations.

Are short-term rentals legal in Los Gatos?

Short-term rentals operate in Los Gatos, as evidenced by 68 active Airbnb listings in the market. However, local regulations regarding permits, zoning, and operational requirements can change, so prospective investors should verify current rules directly with the Town of Los Gatos and review any applicable HOA restrictions before purchasing a property for STR use.

When is peak season for Airbnb in Los Gatos?

Peak season in Los Gatos runs from May through August, with July being the highest-earning month at an average of $4,689 in revenue, followed by June at $4,429. The off-peak period falls in the winter months, with December being the softest at $2,583. This roughly $2,100 spread between peak and off-peak months means investors should budget for meaningful seasonal revenue swings.

How many Airbnbs are there in Los Gatos?

As of April 2026, there are 68 active Airbnb listings in Los Gatos. The supply is concentrated in smaller properties, with 1-bedroom units making up the largest share at 38 listings, followed by 12 two-bedroom listings and 11 studios. Year-over-year, the number of active listings has grown by 114%, indicating rapidly increasing investor and host interest in the market.

How is Airbnb revenue calculated in Los Gatos?

The annual and monthly revenue figures shown for Los Gatos are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the results into a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Los Gatos market
• Average daily rate, occupancy, and RevPAN metrics with state-level benchmarks
• Monthly and annual revenue trends based on trailing 12-month historical booking data
• Supply distribution and performance breakdowns by property size
• Home value data sourced from Zillow Home Value Index (ZHVI)

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing historical performance and may not account for recent regulatory changes or market shifts. Individual property results will vary based on location, condition, pricing strategy, and management quality.