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Best Places to Airbnb Near San Jose: Investing in California Real Estate

best places to airbnb near san jose

Key Takeaways
  • San Jose’s job market attracts many young professionals and entrepreneurs to the city. Aside from this, many travelers visit this city annually, which has helped Airbnb hosts to earn a good passive income with their rental properties. 
  • Find out why investing in an Airbnb property in San Jose and nearby cities is a good idea.
  • The 10 best neighborhoods and nearby cities in San Jose are revealed – along with their recommended property types and Airbnb data. 

Introduction

San Jose is considered the capital of Silicon Valley since it is the financial, technological, and political center. This city welcomes everyone to enjoy its modern environment, lively streets and friendly locals. Thus, it’s understandable why many people love this place!

If you are looking for one of the best places to invest in Airbnb in California, then you should consider San Jose. This city is home to several major companies that open the doors to great job opportunities. It also owns a bustling tourist market that investors who are looking to cater to tourism accommodations will surely love!

Are you wondering what places near San Jose are the best for Airbnb investment? In this article, we’ll feature the most profitable places for Airbnb in San Jose, California. We also added some of the expectations for rental properties in this city. Continue reading to learn more!

Why invest in a rental property in San Jose, California?

It’s a given fact that San Jose is a great sunny destination with breathtaking landscapes and a financial & tech hub! Yet, the housing market may make real estate investors interested in California take a step back. This is because the average property value is $1,242,406, which is higher than the national average.

But don’t worry too much because there are also good reasons why investing in San Jose, California real estate is still a profitable idea:

  • Great tourist market 

Aside from its business environment, San Jose has plenty of places to visit and enjoy. This includes museums, water parks, great restaurants, and bars. Thanks to that, it attracts around 2.8M visitors annually and the number of people who come to the city continues to increase

Thus, the tourism industry and business traveler revenue contribute significantly to San Jose’s economy. This also means that the demand for tourist accommodations is consistent.

  • Booming job market

San Jose is widely known as the home to major tech and financial companies that offer great job opportunities to young professionals. To name a few, the main headquarters of big companies like PayPal, Netflix, and Adobe are located here. Hence, it’s understandable that this city owns a bustling job market. In fact, the unemployment rate in San Jose is 2.1%, which is lower than the US average.

  • Prime location

San Jose’s location in California is great since it’s close to major cities such as Santa Clara, San Francisco and Sacramento. In addition to this, we can find Silicon Valley’s airport and San Jose International Airport which are just 3.9 miles away from downtown.

Is Airbnb Profitable in San Jose, CA?

Wondering whether your real estate investment in San Jose would be lucrative or not? Airbtics confirms that investing in an Airbnb property in San Jose is profitable. Still, it should be noted that the level of profitability depends on the property type and location.

According to Airbtics’ data, there are currently 1,428 Airbnb listings in San Jose.  An Airbnb host can expect an average annual revenue of $82,806 for operating a 3-bedroom property in this city.

best places to airbnb near san jose

10 Best Places to Invest in Airbnb near San Jose, California

San Jose is one of the largest cities in the state of California and its exciting neighborhoods offer much more than what first meets the eye. So it’s understandable if you’re having a hard time choosing the best place to set up your Airbnb listing in San Jose.

Check out the best areas and nearby cities in San Jose that are highly recommended for starting an Airbnb business:

1. South San Jose
  • Total Number of Airbnb Listings: 187
  • Best bedroom size: 4 bedrooms
  • Median property price (4 bedrooms): $1,188,000
  • Airbnb Annual revenue: $181,006
  • Gross rental yield: 15.24%
2. Central San Jose
  • Total Number of Airbnb Listings: 672
  • Best bedroom size: 4 bedrooms
  • Median property price (4 bedrooms): $1,100,000
  • Airbnb Annual revenue: $93,154
  • Gross rental yield: 8.47%
3. North San Jose
  • Total Number of Airbnb Listings: 188
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $1,079,999
  • Airbnb Annual revenue: $79,826
  • Gross rental yield: 7.39%
4. East San Jose
  • Total Number of Airbnb Listings: 207
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $580,000
  • Airbnb Annual revenue: $42,426
  • Gross rental yield: 7.31%
5. West San Jose
  • Total Number of Airbnb Listings: 315
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $1,175,000
  • Airbnb Annual revenue: $83,309
  • Gross rental yield: 7,09%
6. Mountain View, CA
  • Distance from San Jose: 11 miles 
  • Total Number of Airbnb Listings: 308
  • Best bedroom size: 1 bedroom
  • Median property price (1 bedroom): $650,000
  • Airbnb Annual revenue: $57,323
  • Gross rental yield: 8.82%
7. Santa Clara, CA
  • Distance from San Jose: 12 miles 
  • Total Number of Airbnb Listings: 381
  • Best bedroom size: 1 bedroom
  • Median property price (1 bedroom): $568,000
  • Airbnb Annual revenue: $47,796
  • Gross rental yield: 8.41%
8. Santa Cruz, CA
  • Distance from San Jose: 23 miles
  • Total Number of Airbnb Listings: 275
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $1,350,000
  • Airbnb Annual revenue: $137,365
  • Gross rental yield: 10.17%
9. San Mateo, CA
  • Distance from San Jose: 27 miles 
  • Total Number of Airbnb Listings: 194
  • Best bedroom size: 1 bedroom
  • Median property price (1 bedroom): $649,000
  • Airbnb Annual revenue: $69,181
  • Gross rental yield: 10.65%
 10. Sacramento, CA
  • Distance from San Jose: 82 miles 
  • Total Number of Airbnb Listings: 753
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $469,900
  • Airbnb Annual revenue: $55,146
  • Gross rental yield: 11.73%

Conclusion

In summary, San Jose has great & profitable areas that offer an attractive cash-on-cash return to real estate investors interested in California’s market. While there are plenty of neighborhoods and nearby cities in San Jose with high rental yields and annual revenue, it is still worth analyzing different options thoroughly.

After discovering the best places to Airbnb near San Jose, California, take advantage of the digital era and go further in your venture. Check Airbtics’  Airbnb income calculator to stand out among your competitors while maximizing your profitability!

Explore The Most Profitable Airbnb Locations Near San Jose

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Airbnb Investment All About Airbnb

Homes for Sale in San Jose, California: Is it Profitable for Airbnb?

airbnb homes for sale San Jose

San Jose is commonly known as the capital of Silicon Valley which is situated in the southern part of California. Aside from this city’s sunny weather, it is also renowned as the tech and financial capital – which attracts plenty of talented entrepreneurs from around the globe. 

Here’s an interesting fact: did you know that in San Jose, grocery stores highly encourage shoppers to follow environmental initiatives such as BYOB (Bring Your Own Bag)? Perfect for people who want to take part in saving mother nature! On a personal note, these kinds of cities such as San Jose says a lot about its care for their locals’ futures – innovative, bright, and green.

While it’s a fact that the housing markets in San Jose are relatively expensive, Norada Real Estate Investment confirms that the employment rate and the overall economy of this city are consistently on the rise. Since San Jose is situated within the heart of Silicon Valley area, this means that many employees working from well-known tech companies like Apple find properties within their budget.

Continue reading this article as we discuss our findings if it’s profitable for Airbnb property investment, along with some actual San Jose properties for sale. Let’s dive in!

Perks of Buying a House in San Jose, CA

According to Up Homes, San Jose is considered a great place to live due to its natural landscape and close proximity to major beach cities such as Santa Cruz & San Francisco. Let’s have a closer look at the advantages of buying an Airbnb property in San Jose:

1. Hot Market: Shortage of Housing Supply

Based on a recent report by San Jose Real Estate Los Gatos Homes, the limited inventory in San Jose is something that should be taken advantage of by those who want to invest in properties and make a good passive income. While there are high interest rates for various markets, there are still plenty of offers that are selling above the asking price. This simply means that the demand is consistent!

2. Business-minded People

Due to the young professionals working for huge software and computer companies, San Jose is home to several innovators and tech experts. Some of the popular companies with main headquarters in San Jose include PayPal, Adobe, Netflix, and even Google. This city is certainly suitable for those who want to have a work and play environment. Earning money while enjoying the big city!

3. Exciting Local Spots

Aside from San Jose’s focus on the office and business industry, there are also plenty of places to enjoy and relax such as amusement parks and waterparks in California’s Great America, and a contemporary art museum with exquisite collections. 

Bonus: San Jose also offers a dog-friendly environment! Why have furry friends in diners or workplaces? We say – why not! There are also local dog parks in the city such as the Saratoga Creek Dog Park and Almaden Quicksilver County Park.

What to Expect When Living in San Jose

Now that we know the pros of investing in San Jose, let’s discuss some of the cons so you can know what to expect when living in this city. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. Caution: Heavy Traffic Congestion

Ranked as the 5th worst city with traffic congestion in the US by Biz Journals, it’s expected to be experienced by locals in San Jose, particularly during rush hours. However, the good news is that there’s reliable public transportation (VTA Light RAIL & BART) and car service available.

2. High Cost of Living

Since this large and beautiful city offers almost everything to its residents, expect that the cost of living is higher than the national average. It’s also a fact that San Jose is one of the wealthiest cities in America! Therefore, if one will decide to invest in this city, a good cash flow can be expected as long as the right neighborhood is targeted.

Profitable Neighborhoods for Airbnb in San Jose

In summary, San Jose is undoubtedly one of the best property investment cities in the USA, but let’s take a closer look at the important Airbnb key metrics. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods in San Jose:

airbnb property for sale Wisconsin Dells

1. Santee
  • Annual revenue:  $26,532
  • Average daily rate: $76
  • Occupancy rate: 87%
2. Japantown
  • Annual revenue:  $37,793
  • Average daily rate: $114
  • Occupancy rate: 76%
3. Newhall
  • Annual revenue:  $36,334
  • Average daily rate: $141
  • Occupancy rate: 68%

Is Property Investment Profitable in San Jose?

Using a short-term rental calculator, it was discovered that a 2-bedroom apartment in San Jose can generate an annual revenue of $41,580 with a steady occupancy rate of 79% and a nightly rate of $128.

airbnb homes for sale San Jose

airbnb homes for sale San Jose

airbnb homes for sale San Jose

San Jose Properties for Sale

Buying a house property for Airbnb in San Jose will not only let you have access to a delightful vacation spot, but it can also bring an excellent return on investment and become a reliable income stream. It may be difficult to find the best properties that have the potential to produce high yields and capital growth, and this article will certainly help you through! 

Here are some of the houses for sale in San Jose along with the calculated gross rental yield, cash-on-cash return, and annual revenue.

airbnb homes for sale San Jose
airbnb homes for sale San Jose
airbnb homes for sale San Jose

1903 E Bayshore Rd Spc 42, Redwood City, CA 94063

1. Studio-type Property for Sale San Jose
  • 0.8 miles to Taft Elementary School
  • Asking Price: $80,000
GROSS RENTAL YIELD 25.92%
ANNUAL REVENUE $20,735
CASH ON CASH RETURN 51.99%
airbnb homes for sale San Jose
airbnb property for sale Wisconsin Dells

5878 Garlic Farm Dr Spc 39, Gilroy, CA 95020

2. 1-Bedroom Type Property for Sale San Jose
  • 1.4 miles Gilroy High School
  • Asking Price: $89,950
GROSS RENTAL YIELD 27.06%
ANNUAL REVENUE $24,341
CASH ON CASH RETURN 55.41%
airbnb homes for sale San Jose
2-Bedroom San Jose

1075 Space Park Way Spc 1, Mountain View, CA 94043

3. 2-Bedroom Type Property for Sale San Jose
  • 0.8 miles to Crittenden Middle School
  • Asking Price: $149,999
GROSS RENTAL YIELD 24.03%
ANNUAL REVENUE $36,045
CASH ON CASH RETURN 46.32%
3-Bedroom San Jose
3-Bedroom San Jose

436 Merriweather Ln Unit 436, San Jose, CA 95134

4. 3-Bedroom Type Property for Sale San Jose
  • 0.6 miles George Mayne Elementary School
  • Asking Price: $225,000
GROSS RENTAL YIELD 23.83%
ANNUAL REVENUE $53,619
CASH ON CASH RETURN 45.72%
4-Bedroom San Jose
4-Bedroom San Jose

200 Ford Rd Spc 93, San Jose, CA 95138

5. 4-Bedroom Type Property for Sale San Jose
  • 1.5 miles to Oak Grove High School
  • Asking Price: $257,000
GROSS RENTAL YIELD 24.24%
ANNUAL REVENUE $62,289
CASH ON CASH RETURN 46.94%

Conclusion

Conducting market research in San Jose is helpful for accuracy and knowing the potential profitability. With the various tech industries & recreational activities to do in San Jose, it can certainly generate a nice cash flow for property investors. However, it’s not recommended for property investors with a limited budget as the cost of living is 81% higher than the national average. There are certainly other cities in California that one can discover!

As long as the potential revenue is calculated using an Airbnb profit calculator., it’s definitely worth the time & effort to invest and speak with a short-term rental expert to make the wisest decision for property investment that you wont regret.

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