Virginia occupies a strategic position in the East Coast STR landscape that no other state quite replicates. Northern Virginia — Arlington, Alexandria, Fairfax — feeds off Washington, D.C. demand without being subject to D.C.’s notoriously restrictive short-term rental laws. Virginia Beach is the most-visited beach in Virginia and one of the busiest on the East Coast. The Shenandoah Valley and Blue Ridge Mountains serve the same drive-to-vacation market that fuels Asheville and the Smokies. And Richmond, the state capital, has quietly become one of the Southeast’s most compelling food-and-culture destinations.
Virginia tourism generated $32.2 billion in visitor spending in 2023, supporting over 240,000 jobs. The state drew 93 million domestic person-trips that year. Those aren’t just beach visitors — Northern Virginia alone accounts for a massive share of federal contractor travel, government consultant bookings, and corporate relocations. When you factor in the military installations (Norfolk Naval Station, Joint Base Langley-Eustis, Fort Barfoot) that generate PCS moves and visiting family demand, Virginia’s STR market has a depth of demand drivers that’s hard to match.
I think of Virginia as three distinct STR markets operating under one state umbrella: the D.C. suburbs, the coastal zone, and the mountain/valley region. Each one has different guest demographics, different seasonality, and different regulatory considerations. This guide covers all three, with the specific data and regulatory detail you need to operate profitably in each.
Why Virginia Is a Top Market for Short-Term Rentals
Virginia’s primary advantage is demand stability. Northern Virginia’s government and defense contractor economy doesn’t fluctuate with leisure travel trends — federal employees, military personnel, and consultants need short-term housing year-round, including through winter months when beach and mountain markets slow down. This creates a floor under occupancy that purely seasonal markets lack.
Virginia Beach and the Hampton Roads region add a strong seasonal tourism layer. Virginia Beach’s oceanfront boardwalk stretches three miles and draws 19 million visitors annually. But the area isn’t one-dimensional — Norfolk’s Ghent district, the Naval Station’s family visiting season, and the growing brewery/restaurant scene in Virginia Beach’s ViBe district create demand beyond the traditional summer beach window.
The Shenandoah Valley represents Virginia’s experience-tourism play. Shenandoah National Park’s Skyline Drive, the Blue Ridge Parkway (which starts in Virginia before entering North Carolina), and the region’s wineries and farm-to-table dining attract visitors who stay 2-4 nights and spend generously on accommodation. Properties here can command $200-$400+ per night for mountain-view homes with upscale amenities.
Richmond adds a fourth dimension. The city’s craft beer scene (over 40 breweries), James River outdoor recreation, and historic significance (Civil War sites, Monument Avenue, Capitol District) create a weekend getaway market for D.C., Baltimore, and Raleigh residents. Richmond’s lower property costs compared to Northern Virginia make it an attractive entry point for investors.
What ties all four zones together is Virginia’s generally host-friendly regulatory environment. The state passed legislation in 2017 that limits municipalities’ ability to ban STRs outright, providing a baseline level of operating certainty that many states don’t offer.
Virginia Short-Term Rental Laws and Regulations
Virginia’s regulatory framework is shaped by a state-level law passed in 2017 (Virginia Code Section 15.2-983) that established important protections for STR operators while still allowing local governments to regulate. Understanding this framework is essential before entering any Virginia market.
State-Level Requirements
Virginia Code Section 15.2-983 states that localities cannot prohibit short-term rentals of property where the operator maintains the property as their primary residence. This means if you live in a property and rent it out part-time, your local government cannot ban that activity (though they can regulate it). For non-primary-residence STRs, localities have broader authority to restrict or require permits.
All Virginia STR operators must register with the Virginia Department of Taxation and collect the state’s 5.3% sales tax plus the 1% state transient occupancy tax. You’ll also register for your locality’s transient occupancy tax (rates vary). If you form an LLC, file with the Virginia State Corporation Commission ($100 filing fee). Virginia requires an annual registration fee of $50 for LLCs.
Virginia also requires STR operators to maintain a registry of guests, including names, addresses, and dates of stay. This is a state-level requirement that applies regardless of your locality’s additional rules.
Key City/County Regulations
Arlington County: Arlington is the highest-demand Northern Virginia market due to its proximity to D.C., the Pentagon, and Reagan National Airport. The county allows STRs in the host’s primary residence and requires registration. Non-primary-residence STRs (including rental arbitrage) face significant restrictions — they’re limited to certain zoning districts and require a use permit. Arlington charges a 5.25% transient occupancy tax on top of the state rate. The county’s registration process requires proof of primary residency, liability insurance, and adherence to noise and parking standards. Maximum occupancy is capped at 2 persons per bedroom.
Virginia Beach: Virginia Beach has a two-tier STR system. The Sandbridge area and certain oceanfront zones have long-established vacation rental operations with relatively straightforward permitting. Other residential areas are more restrictive — the city requires a Conditional Use Permit (CUP) for STRs in most residential zones outside designated tourist areas. CUPs require a public hearing and can take 6-12 weeks to process. Virginia Beach charges a 8% transient occupancy tax (one of the higher rates in the state). Properties must comply with occupancy limits, parking requirements, and 24-hour contact availability.
Richmond: Richmond requires a Short-Term Rental Permit for properties rented for fewer than 30 consecutive days. The city distinguishes between hosted rentals (operator lives on-site) and unhosted rentals (operator is off-site). Both types require permits, but unhosted STRs face additional restrictions in single-family residential zones. Richmond charges a 8% transient occupancy tax. The permitting process involves a zoning review, property inspection, and proof of insurance. Fees are $250 for the initial permit and $150 for annual renewal.
Fairfax County: Fairfax County adopted STR regulations in 2022 that require operators to register, pay a $200 annual fee, and comply with occupancy and noise standards. The county allows STRs in the operator’s primary residence by right in most zones. Non-primary-residence STRs are allowed in commercial and mixed-use zones but require a Special Exception in purely residential zones. Fairfax County charges a 6% transient occupancy tax.
Recent Regulatory Changes (2025-2026)
Virginia Beach expanded its designated STR zones in 2025, adding portions of the Resort Area and Town Center district to the areas where STRs are permitted without a Conditional Use Permit. This was a significant win for hosts operating near the oceanfront. Arlington tightened its enforcement in late 2025, implementing platform monitoring to identify unregistered listings and issuing compliance notices with 30-day cure periods before fines kick in.
At the state level, Virginia House Bill 1783, introduced in January 2026, proposes creating a statewide STR registry and requiring platforms to verify operator registration before allowing listings. The bill also includes provisions for platform-based tax collection agreements. It’s currently in committee with support from both the hospitality industry and STR operator groups, though municipalities have expressed concerns about state preemption of local authority.
Tax Obligations for Virginia Airbnb Hosts
Virginia’s tax structure for STR operators is relatively clean compared to states like Ohio or Illinois, but there are still multiple layers to track.
The state sales tax is 5.3% and applies to all transient lodging. On top of that, Virginia imposes a state transient occupancy tax of 1%. These two state-level taxes total 6.3% and apply uniformly statewide.
Then each locality adds its own local transient occupancy tax. Rates vary considerably: Arlington County charges 5.25%, Virginia Beach charges 8%, Richmond charges 8%, Fairfax County charges 6%, and Winchester charges 5%. The Hampton Roads localities (Norfolk, Newport News, Hampton) generally charge 7-8%. Some localities also impose a local sales tax of 0.7% on top of the state sales tax.
Your total tax burden on each booking typically ranges from 11.5% to 15.3% depending on location. Airbnb collects Virginia state taxes (sales + transient occupancy) automatically. Most local transient occupancy taxes are also collected by Airbnb in Virginia, but you should verify this with your specific locality. For VRBO bookings and direct bookings, you may need to collect and remit all taxes yourself.
Virginia state income tax applies to all net rental income, with rates ranging from 2% to 5.75% depending on total income. Virginia follows federal tax treatment for rental property deductions — mortgage interest, depreciation, repairs, utilities, insurance, cleaning, supplies, platform fees, and travel are all deductible. Virginia also offers a pass-through entity tax election that can benefit STR operators organized as LLCs or S-Corps — consult a Virginia CPA on whether this election makes sense for your situation.
Best Cities for Airbnb in Virginia
Arlington / Northern Virginia
Northern Virginia is the state’s highest-ADR market, driven by the insatiable demand from D.C. government, defense, and consulting work. Arlington, Alexandria, and Tysons Corner are the primary STR zones. Business travelers dominate the guest mix, and they book year-round — there’s no “off season” for a Pentagon contractor needing housing during a 3-month assignment.
ADRs in Arlington and Alexandria range from $155-$230, with occupancy rates of 72-80% — among the highest in the state. A one-bedroom apartment near a Metro station can gross $38,000-$52,000 annually. Two-bedrooms in Clarendon or Old Town Alexandria gross $48,000-$68,000. These are premium numbers, but Northern Virginia also has premium lease costs — a two-bedroom apartment in Arlington runs $2,400-$3,200 per month, which tightens arbitrage margins.
The key differentiator for NoVA properties is Metro access. Properties within a 10-minute walk of a Metro station command a 15-25% rate premium over comparable units without Metro access. Business travelers prioritize the ability to commute to D.C. without a car. Furnished apartments with a dedicated workspace, reliable high-speed WiFi, and a full kitchen outperform properties that feel like hotel rooms.
Best property types: 1-2 bedroom furnished apartments near Metro stations, corporate-housing-style units with workspaces and full kitchens.
Virginia Beach / Hampton Roads
Virginia Beach’s STR market splits into two distinct segments. The Sandbridge area and oceanfront zones operate as traditional vacation rental markets with high summer rates and strong seasonal demand. The broader Hampton Roads region (Norfolk, Newport News, Hampton) generates military-connected demand that’s steadier but lower in ADR.
Oceanfront Virginia Beach properties average $175-$320 ADR during peak season (June through August), with shoulder-season rates dropping to $100-$160 (April-May, September-October). Annual occupancy for beach properties averages 55-65%, with summer months exceeding 90%. A three-bedroom oceanfront condo can gross $45,000-$72,000 annually. Sandbridge homes (typically 4-6 bedrooms) gross $55,000-$95,000.
The military dimension adds an interesting layer. Norfolk Naval Station is the largest naval base in the world, and the surrounding area generates constant demand from families visiting deployed service members, military personnel on temporary duty, and PCS (permanent change of station) moves where families need 2-6 weeks of temporary housing while they close on a home. These bookings are longer-stay and recession-resistant.
Best property types: Oceanfront condos and beach houses for vacation travelers, 2-3 bedroom furnished apartments near military bases for PCS/TDY demand.
Richmond
Richmond has emerged as one of Virginia’s most dynamic STR markets over the past five years. The city’s craft beer scene, James River kayaking and tubing, Carytown shopping district, and growing reputation as a food destination draw weekend visitors from D.C., Baltimore, and Raleigh. Richmond also benefits from significant event demand — NASCAR races at Richmond Raceway, University of Richmond and VCU athletics, and a packed calendar of festivals and concerts.
ADRs in Richmond average $120-$175, with the Fan District, Carytown, and Scott’s Addition (the brewery district) commanding the highest rates. Occupancy runs 62-70% annually. A two-bedroom in Scott’s Addition or the Fan can gross $28,000-$42,000 per year. Richmond’s lower property costs make the return-on-investment math compelling — homes in the Fan sell for $280,000-$400,000 and can gross enough as STRs to yield 8-12% annually.
Richmond’s arbitrage economics are solid. Two-bedroom apartments in the Fan or Scott’s Addition lease for $1,300-$1,800, while STR revenue runs $2,400-$3,800 monthly. The city’s permitting process is more involved than Charlotte or Raleigh but still manageable for a prepared operator.
Best property types: Trendy 1-2 bedrooms in Scott’s Addition for brewery-district weekenders, historic row houses in the Fan for longer-stay visitors.
Shenandoah Valley / Blue Ridge
The Shenandoah Valley stretches from Winchester in the north to Lexington in the south, with Shenandoah National Park and the Blue Ridge Parkway as the primary demand generators. This is Virginia’s premium vacation rental market — guests come for mountain views, hiking, fall foliage, and wine country experiences (Virginia has over 300 wineries, many clustered in the Blue Ridge foothills).
ADRs for mountain properties run $175-$350, with luxury homes (mountain views, hot tubs, fire pits, 3+ bedrooms) commanding $300-$500+ on fall weekends. Occupancy averages 52-63% annually, with peak demand from May through November and a secondary ski-season bump near Wintergreen or Massanutten resorts. A three-bedroom mountain cabin near Shenandoah National Park can gross $45,000-$75,000 annually.
Luray, a small town at the base of Shenandoah National Park, has become a vacation rental hotspot. Luray Caverns draws 500,000+ visitors annually, and the town’s proximity to Skyline Drive makes it a natural basecamp for park visitors. Nearby Charlottesville adds UVA-related demand (parent visits, graduation, football) and wine-country tourism.
Best property types: Mountain-view cabins with hot tubs and fire pits, renovated farmhouses on acreage, properties near Skyline Drive or winery clusters.
How Much Do Airbnbs Make in Virginia?
Virginia’s earnings spread reflects the dramatic differences between its D.C.-adjacent urban market, its beach market, and its mountain market. Here’s the data across key areas:
| City / Area | Avg Daily Rate | Avg Occupancy | Est. Annual Revenue (2BR) | Peak Season |
|---|---|---|---|---|
| Arlington / Alexandria | $165-$230 | 76% | $48,000-$68,000 | Year-round (gov/corporate) |
| Virginia Beach (oceanfront) | $175-$320 | 60% | $38,000-$60,000 | Jun-Aug |
| Sandbridge (4BR home) | $250-$450 | 55% | $55,000-$95,000 | Memorial Day-Labor Day |
| Richmond (Fan/Scott’s Addition) | $130-$175 | 66% | $30,000-$42,000 | Spring-fall, events |
| Shenandoah / Blue Ridge | $175-$350 | 57% | $36,000-$58,000 | May-Nov, fall foliage peak |
| Charlottesville | $140-$195 | 64% | $32,000-$46,000 | UVA events, wine season |
Operating costs vary by Virginia market more than most states. Northern Virginia has the highest costs — cleaning crews charge $120-$200 per turnover for a two-bedroom (compared to $70-$100 in Richmond), and lease costs for arbitrage are steep. Expect operating expenses of 30-38% of gross revenue in NoVA. Richmond runs the leanest at 24-30%. Virginia Beach and Shenandoah fall in between at 28-35%, with beach properties carrying higher insurance costs and mountain properties having seasonal maintenance (snow removal, well/septic, propane).
The ROI story in Virginia depends heavily on which market you’re in. Northern Virginia’s high gross revenue is offset by high property and operating costs — net yields typically run 6-9%. Richmond offers the best yield-to-cost ratio at 9-13%. Shenandoah mountain properties can yield 10-15% if you purchase at reasonable prices and manage maintenance efficiently. Virginia Beach yields vary widely based on proximity to the ocean and whether the property is in a flood zone.
How to Start Your Virginia Airbnb Business
Virginia’s state-level STR protections provide a foundation, but the municipality-by-municipality details matter. Here’s the launch process.
Step 1: Choose Your Virginia Market. Northern Virginia for year-round corporate demand and the highest absolute revenue. Virginia Beach for seasonal beach rental income and military-connected demand. Richmond for the best cost-to-revenue ratio and growing tourism. Shenandoah Valley for premium vacation rental experiences with strong ADRs. Each market suits a different operator profile — NoVA requires more capital, Richmond requires less, and Shenandoah requires property management skills for rural properties. Consider what aligns with your budget and operational capacity.
Step 2: Understand Your Locality’s Rules. In Arlington, confirm your property is your primary residence (or that your zoning allows non-primary STRs). In Virginia Beach, determine if your property is in a designated STR zone or if you need a Conditional Use Permit. In Richmond, prepare for the permitting process (zoning review + inspection). In rural Shenandoah counties, regulations are often minimal, but verify with the county administrator. Don’t assume — call the local planning or zoning office and get written confirmation.
Step 3: Form Your Virginia LLC. File with the Virginia State Corporation Commission ($100 filing fee). Register for state taxes with the Virginia Department of Taxation. Register for local transient occupancy tax with your locality. Obtain an EIN from the IRS and open a dedicated business bank account. Virginia also requires an annual registration fee of $50 for LLCs. Total formation cost: $200-$350.
Step 4: Secure Your Property. For rental arbitrage in Northern Virginia, expect competition — lease costs are high, and landlords in premium buildings often prohibit subletting. Target smaller buildings and individual landlords who may be more flexible. Richmond and Hampton Roads offer better arbitrage economics. For purchases, work with an agent who can calculate STR cash flow — not just comparative sales value. In Shenandoah, inspect for well water, septic condition, and road access before closing.
Step 5: Complete Permits and Registration. Timelines: Arlington registration takes 2-3 weeks. Virginia Beach CUPs take 6-12 weeks (start this early). Richmond permits run 3-5 weeks with inspection scheduling. Fairfax County registration takes 2-4 weeks. Rural counties may have no formal process but still require tax registration. Don’t list your property before permits clear.
Step 6: Furnish for Your Guest Segment. NoVA business travelers need ergonomic workspaces, fast WiFi (100+ Mbps), a Keurig or quality coffee maker, and a well-equipped kitchen. Beach guests need outdoor showers, beach chairs, boogie boards, and durable furnishings that handle sand and sunscreen. Mountain guests want hot tubs, Adirondack chairs around fire pits, board games, and cozy throws. Richmond weekenders want modern design, a curated coffee-table book collection, and walkability to restaurants and breweries. Budget $3,000-$6,000 per bedroom for urban, $4,000-$8,000 for vacation properties.
Step 7: Photography, Listing, and Pricing. Professional photography is essential in every Virginia market. For NoVA, highlight the workspace, kitchen, and Metro proximity. For beach properties, shoot at golden hour with ocean views prominent. For mountain homes, capture the sunset from the deck with the hot tub steaming. Set dynamic pricing from launch — Virginia’s seasonality varies so much by market that flat-rate pricing leaves significant money on the table. Use PriceLabs or Beyond Pricing calibrated to your specific submarket.
Step 8: Scale Across Markets. Virginia’s geographic diversity creates a natural scaling path. Start with one market, stabilize operations over 3-4 months, then consider adding a property in a complementary market. A portfolio with a NoVA apartment (year-round revenue) and a Shenandoah cabin (peak-season premium) creates income diversification that single-market portfolios can’t match. Co-hosting is another scaling path — especially in Virginia Beach, where many homeowners want to rent their properties seasonally but don’t want to manage the operations.
Virginia STR Insurance and Liability
Virginia’s coastal and mountain markets each present distinct insurance considerations. Every Virginia STR operator needs dedicated coverage — standard homeowners insurance won’t protect you.
For Virginia Beach and Hampton Roads properties, flood insurance is critical. Most oceanfront and many near-ocean properties fall within FEMA flood zones, making flood insurance effectively mandatory (and required by mortgage lenders). NFIP policies cover up to $250,000 for the structure and $100,000 for contents. Annual premiums range from $1,500-$5,000+ depending on flood zone, elevation, and construction type. Private flood insurers may offer higher limits at competitive rates.
Shenandoah Valley and mountain properties need coverage for wind damage, ice storms, fallen trees, and liability for outdoor amenities (hot tubs, fire pits, hiking trails on the property). Hot tub liability is a specific underwriting consideration — some insurers require safety features (covers, temperature limits, signage) as a condition of coverage.
Northern Virginia properties have lower environmental risk but higher property values, which means higher replacement cost coverage. Business travelers are generally lower-liability guests than vacation renters, but you still need a minimum of $1 million in general liability coverage.
Annual STR insurance premiums in Virginia: $1,100-$2,200 for urban/suburban properties, $1,500-$3,000 for mountain vacation rentals, and $2,500-$6,000+ for coastal properties including flood. Providers like Proper Insurance and CBIZ specialize in Virginia STR coverage. AirCover and VRBO liability coverage provide supplemental protection but should never be relied upon as your primary policy.
Why 10XBNB Gives You the Edge in Virginia
Virginia’s four distinct market zones create exceptional opportunity for operators who understand how to match their strategy to each zone’s demand drivers. The host who optimizes a corporate apartment in Arlington uses completely different tactics than someone running a Sandbridge beach house or a Shenandoah cabin. Pricing strategies, guest communication, furnishing choices, and operational workflows all change based on the market and guest profile.
The 10XBNB system trains you to think in terms of market-specific execution rather than one-size-fits-all hosting. Students learn how to analyze whether NoVA’s high-cost/high-revenue model or Richmond’s lower-cost/solid-yield model fits their capital situation, how to navigate Virginia Beach’s CUP process without wasting months, and how to build operations that handle the different guest expectations of a D.C. consultant versus a family beach vacation.
Virginia is a state where preparation pays outsized returns. The regulatory framework protects primary-residence hosts, the demand base is diversified and recession-resistant, and the multiple markets allow for portfolio construction that balances risk across seasons and guest segments. 10XBNB gives you the operational knowledge to capitalize on all of it. See how making money on Airbnb without owning property works in Virginia’s arbitrage-viable markets like Richmond and Hampton Roads.
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Frequently Asked Questions
Can Virginia cities ban short-term rentals?
Virginia Code Section 15.2-983 prevents localities from prohibiting short-term rentals of a property where the operator maintains it as their primary residence. However, localities can regulate STRs (permits, fees, occupancy limits) and can restrict non-primary-residence STRs more heavily, including limiting them to certain zones. Some Virginia cities effectively limit non-primary-residence STRs through zoning and permitting requirements without outright banning them.
How much are Virginia Airbnb taxes?
Virginia STR taxes include the 5.3% state sales tax plus a 1% state transient occupancy tax (6.3% combined at the state level). Each locality adds its own transient occupancy tax — Arlington charges 5.25%, Virginia Beach charges 8%, Richmond charges 8%, and Fairfax County charges 6%. Total tax rates typically range from 11.5% to 15.3%. Airbnb collects state taxes and most local transient occupancy taxes automatically in Virginia.
Is Northern Virginia good for Airbnb?
Northern Virginia is one of the strongest year-round STR markets on the East Coast, driven by D.C. government, defense, and corporate demand. ADRs of $165-$230 and occupancy rates of 72-80% make it one of the highest-revenue markets in the state. The trade-off is higher property costs and operating expenses. Metro access is the single biggest factor affecting rates — properties within walking distance of a Metro station command 15-25% rate premiums.
Do I need a permit for a Virginia Beach Airbnb?
It depends on your property’s location. Properties in the Sandbridge area and designated oceanfront zones may operate under existing vacation rental frameworks with straightforward permitting. Properties in most other residential zones require a Conditional Use Permit (CUP), which involves a public hearing and can take 6-12 weeks. Virginia Beach charges an 8% transient occupancy tax and requires hosts to be available 24/7 for guest complaints.
What’s the best Virginia market for rental arbitrage?
Richmond offers the best arbitrage economics. Two-bedroom apartments in the Fan or Scott’s Addition lease for $1,300-$1,800 and generate $2,400-$3,800 in monthly STR revenue. Northern Virginia has higher gross revenue but lease costs ($2,400-$3,200 for a two-bedroom) eat into margins significantly. Hampton Roads (Norfolk, Virginia Beach inland areas) is a middle-ground option with moderate lease costs and steady military-connected demand.
Do I need flood insurance for a Virginia Beach rental?
Most Virginia Beach oceanfront and near-ocean properties are in FEMA-designated flood zones, making flood insurance required by mortgage lenders. Even if your property is technically outside a flood zone, it’s strongly recommended given the area’s hurricane and nor’easter exposure. NFIP policies cover up to $250,000 for the building. Annual premiums range from $1,500-$5,000+ for oceanfront properties. Private flood insurers may offer higher limits.
