Morgan Hill, CA Airbnb Market Data, Statistics, and Occupancy Rates

Morgan Hill Short-Term Rental Market Overview

Morgan Hill, CA is a micro-market with just 15 active Airbnb listings, offering investors a low-competition environment in Silicon Valley's southern corridor. Average annual revenue sits at $37,680, with an ADR of $270 — roughly half the California state average of $551 — while occupancy runs at 39% compared to the 43% state benchmark. The small supply base and clear summer seasonality create a niche opportunity for investors who can differentiate their property and capture demand from tech-sector visitors and weekend travelers exploring the South County wine region.

Key Market Statistics

According to Rabbu market data, the Morgan Hill short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026.

Why Investors Consider Morgan Hill

Investors look at Morgan Hill for its extremely limited STR supply, proximity to Silicon Valley employment centers, and the pricing headroom that comes from virtually no competitive pressure.

Expert Market Assessment

"With a small inventory of 15 listings and below-average occupancy at 39%, Morgan Hill represents a niche opportunity rather than a high-volume STR play. Revenue peaks strongly in the summer — July's $4,385 average is 82% higher than December's $2,413 — so cash-flow planning should account for meaningful seasonal swings. The limited competition is a genuine advantage, but the market's modest demand profile means properties need to be well-appointed and competitively priced to maintain bookings through the slower winter months. Investors willing to operate lean and target the right guest segments can find workable returns here, though expectations should be calibrated to a smaller-market reality."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Morgan Hill

Average revenue by month in Morgan Hill

Revenue in Morgan Hill follows a clear summer-driven pattern, peaking at $4,385 in July and bottoming out at $2,413 in December — a spread of roughly $2,000 per month. Investors should expect to earn the majority of their annual income between May and August, with the November-through-February stretch requiring careful budgeting to cover fixed costs.

Active Airbnb listings by property size in Morgan Hill

The market is dominated by 1-bedroom listings, which account for 9 of the 15 active properties. The remaining listings are spread across other sizes that don't meet the reporting threshold, suggesting potential opportunity for investors who can offer larger, family-friendly accommodations that are currently underrepresented.

Average daily rate (ADR) by property size in Morgan Hill

One-bedroom listings in Morgan Hill average an ADR of $197, while the overall market ADR of $270 indicates that the limited number of larger properties command significantly higher nightly rates. Investors considering multi-bedroom properties may benefit from a meaningful rate premium with relatively little competition.

Average RevPAN by property size in Morgan Hill

One-bedroom properties deliver a RevPAN of $70, reflecting the combination of a $197 ADR and 36% occupancy. The market-wide RevPAN of $105 suggests that larger or better-performing listings are generating substantially more revenue per available night than the 1-bedroom segment alone.

Average occupancy rates by property size in Morgan Hill

One-bedroom listings average a 36% occupancy rate, slightly below the market-wide 39% average. This modest fill rate points to the importance of strong listing optimization, competitive pricing, and seasonal adjustments to maintain cash-flow consistency.

Average monthly revenue by property size in Morgan Hill

One-bedroom properties average $1,950 per month, which is notably lower than the market-wide average of $3,140. This gap indicates that larger or more unique properties in Morgan Hill are pulling in considerably more monthly revenue, making a strong case for investing beyond the dominant 1-bedroom category.

Average annual revenue by property size in Morgan Hill

At $23,401 in average annual revenue, 1-bedroom listings earn about 62% of the market-wide average of $37,680. Investors targeting higher returns should explore 2+ bedroom configurations, where the scarcity of supply and higher ADRs appear to translate into meaningfully stronger annual income.

Most common amenities for Airbnb listings in Morgan Hill

Parking and kitchen access lead the amenity list at 87% prevalence each, followed by self check-in at 80% — signaling that guests in Morgan Hill expect a self-sufficient, home-like experience. Outdoor features such as patios (53%), backyards (47%), and BBQ grills (47%) are also common, reflecting the suburban setting, while premium amenities like hot tubs and pools (20% each) offer a potential differentiator for listings looking to stand out.

Short-Term Rental Regulations in Morgan Hill

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

Permit Requirements

Operators looking to list a short-term rental in Morgan Hill, California should verify whether a business license, TOT registration, or dedicated STR permit is required by the city. Because local rules can evolve quickly, investors are strongly encouraged to contact Morgan Hill's planning or finance department directly before committing to a purchase.

Key Restrictions

Common short-term rental restrictions in California cities include occupancy limits, minimum-stay requirements, noise and nuisance ordinances, and parking mandates. HOA rules may impose additional constraints, and some jurisdictions cap the number of STR permits issued, so due diligence with both the city and any applicable homeowners association is essential.

Tax Obligations

California imposes transient occupancy taxes on short-term stays, and Morgan Hill may levy its own local TOT on top of state-level obligations. Platforms like Airbnb often collect and remit some taxes automatically, but hosts should confirm with the city that all required filings are covered.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, we expect Morgan Hill's STR market to remain modest in scale but relatively stable, with summer months continuing to drive the bulk of annual revenue. ADR could edge up 1–3% as the limited supply keeps pricing power intact, though occupancy may hold in the 37–42% range absent a meaningful increase in local demand drivers. Investors should plan conservatively around the seasonal dip from November through February, when monthly revenue drops to roughly $2,400–$2,500, and consider dynamic pricing to capture the $4,100–$4,400 peak during June and July."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Morgan Hill, CA

What is the average Airbnb occupancy rate in Morgan Hill?

The average occupancy rate for Airbnb listings in Morgan Hill is currently 39%, which falls slightly below the California state average of 43%. Occupancy tends to fluctuate with seasonality, running higher during summer months and softer during the winter. Individual results can vary significantly based on pricing strategy, listing quality, and guest reviews.

How much do Airbnb hosts make in Morgan Hill?

Based on the trailing 12 months of booking data, the average Airbnb host in Morgan Hill earns approximately $3,140 per month, which works out to about $37,680 per year. Revenue swings noticeably by season — July averages around $4,385 while December dips to roughly $2,413. Actual earnings depend on property quality, location, amenities, and how actively the listing is managed.

Is Morgan Hill a good market for Airbnb investment?

Morgan Hill offers a low-competition environment with only 15 active Airbnb listings, which gives new entrants a better chance to capture bookings without being lost in a crowded field. The trade-off is moderate occupancy (39%) and a relatively modest average annual revenue of $37,680. It can work well for investors who already own property in the area or can acquire at a price point where these revenue levels still support a reasonable return, especially given the proximity to Silicon Valley.

What is the average daily rate (ADR) for Airbnb in Morgan Hill?

The current average daily rate in Morgan Hill is $270, which is significantly below the California state average of $551. This lower ADR reflects the market's suburban positioning and smaller property sizes — the majority of active listings are 1-bedroom units averaging $197 per night. Larger or more premium properties may command rates well above the market average.

Are short-term rentals legal in Morgan Hill?

Short-term rentals operate in Morgan Hill, but investors should verify current permit, licensing, and tax requirements directly with the City of Morgan Hill and the State of California. Local regulations can change, and requirements may include business licenses, transient occupancy tax registration, and compliance with zoning rules. Consulting a local real estate attorney or the city planning department before purchasing is a prudent step.

When is peak season for Airbnb in Morgan Hill?

Peak season in Morgan Hill runs from roughly May through August, with July generating the highest average revenue at $4,385. June follows closely at $4,142, and May and August round out the strong months at $3,593 and $3,738 respectively. The slowest months are December ($2,413), January ($2,453), and February ($2,464), so investors should budget for a pronounced seasonal dip during winter.

How many Airbnbs are there in Morgan Hill?

As of April 2026, there are 15 active Airbnb listings in Morgan Hill. This is an extremely small market by California standards, with the vast majority of listings being 1-bedroom properties. The limited supply means less competition, but it also reflects a relatively nascent demand base for short-term rentals in the area.

How is Airbnb revenue calculated in Morgan Hill?

The annual and monthly revenue figures shown for Morgan Hill 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, drop regional outliers, and roll the remainder up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently rather than to forecasts, while still naturally reflecting seasonal peaks and slower months because each month uses its own historical performance. 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 Morgan Hill market
• Historical occupancy rates and average daily rate trends by property size
• Revenue and yield metrics including RevPAN, monthly, and annual revenue figures
• Amenity prevalence data across active listings to inform property improvement decisions
• Data sourced from Rabbu proprietary analytics and combined for consistency

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages as of April 2026 and may not capture very recent market shifts. Local regulations, tax obligations, and permit requirements are subject to change; always verify with local authorities before investing.