This house is the home of the Peltzer family in the town of Kingston Falls. Some time after the gremlin invasion of the town, Billy Peltzer moved away to New York City along with his girlfriend Kate Beringer, but it is assumed that his parents Randall Peltzer and Lynn Peltzer and his dog Barney still live there.
It was in this house the Gremlin incident started after Gizmo was brought into the house as a Christmas gift to Billy from Rand. The first batch of five mogwai spawned from Gizmo, one of them Stripe due to Billy's friend Pete Fountaine spilling water on him. Billy kept the five new ones as extra pets and let them live in a box, even taking one to the Kingston Falls School teacher Roy Hanson and showed the creature's spawning capability and let Roy keep the spawned one, called Earl, to makes some tests on it.
One night, the mogwai begged for food and Billy gave soft leftover chicken legs to them after seeing it was not midnight yet. The next morning the mogwai had turned into cocoons with Billy and Gizmo surprised, but not so much after finding out the mogwai had destroyed the wire of the alarm clock which was stuck at a time prior to midnight. When Billy was at work, Roy called him due to his mogwai, also having turned into a cocoon earlier, had hatched and Billy ran there to check it out. Meanwhile, the gremlins hatched in the Peltzer house and started to mess around with Gizmo. Lynn who was downstairs and was baking gingerbread men heard the commotion and went upstairs, where she saw the hatched cocoons and called Billy, who had already encountered the gremlin in the school, and he told her to get out of the house. One of the gremlins then terminated the phone connection by ripping out some of the wires and Lynn headed downstairs when the record player started playing.
This led to her finding three of the gremlins that had invaded the kitchen and she managed to kill them all, with a blender, a kitchen knife and a microwave respectively. As she heard something in the living room, she headed there to check it out and was ambushed by a fourth gremlin that was hiding the christmas tree. As it was strangling her, Billy arrived and used one of the ornamental swords on the wall to decapitate the gremlin, saving his mother. Stripe, however, escaped by punching his way out from a window, and Billy took his injured mother to the neighbor, Mr. Molinaro and his wife.
After the Gremlins were defeated, the house was repaired and the Peltzer's moved back in. Billy's parents and Barney most likely still live in the house.