Prices go up as you get closer to San Jose, Morgan Hill is an excellent compromise for the reverse commute to salinas and closeness to san Jose with low crime and good schools compared to Gilroy. Gilroy offers even better value for money if schools are less important and you pick the right neighborhood.
If you want country property with acreage there are several very good unincorporated communities in between, like San Martin, San Juan Batista, Aromas.
As always stay away from busy streets and other poor locations. Even if the house is nice it will alwyas be the last to sell even in one of our hot selling cycles if the location is dubious.