Is Clarendon, Virginia Good for Airbnb Investment?

To start an Airbnb in Clarendon, Virginia, begin by researching Arlington County's short-term rental regulations, which require hosts to obtain a business license ($30-50 annually) and comply with zoning restrictions that typically limit rentals to 90 days per year in residential areas. Contact Arlington County's Department of Community Planning, Housing and Development at 703-228-3525 to verify current permit requirements and submit applications for necessary licenses, including a transient occupancy tax certificate. Find a suitable property by searching platforms like Zillow or Realtor.com for condos or homes in Clarendon's 22201 zip code, focusing on areas near the Metro station where 1-bedroom units rent for $150-250/night and 2-bedrooms for $200-350/night. Furnish the space with essential amenities including WiFi, kitchen basics, linens, and local guidebooks, budgeting approximately $3,000-8,000 for a complete setup depending on property size. Create your listing on Airbnb with professional photos highlighting Clarendon's proximity to Washington DC (10 minutes by Metro), local attractions like Market Common Clarendon, and walkability to restaurants and nightlife. Manage your property by establishing cleaning protocols between guests ($75-150 per turnover), setting competitive pricing using tools like AirDNA, responding promptly to inquiries, and maintaining compliance with Arlington County's noise ordinances and occupancy limits while collecting and remitting the required 5.75% transient occupancy tax to the county quarterly.

To identify profitable short-term rental properties in Clarendon, Virginia, focus on locations within walking distance of the Clarendon Metro station, Court House Metro, and along Wilson Boulevard's restaurant corridor, as these areas attract business travelers and tourists seeking convenient access to Washington DC. Target 1-2 bedroom condos or townhomes built after 2000 with modern amenities, in-unit laundry, parking, and high-speed internet, particularly in buildings like The Clarendon, Phoenix Park, or newer developments near Market Common Clarendon. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $150-250/night for quality units) exceeds long-term rental income by 40-60%, while factoring in Virginia's 5.3% sales tax and Arlington County's transient occupancy tax. Research competition by analyzing existing Airbnb and VRBO listings within a 0.5-mile radius, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Arlington County's real estate portal, while consulting with Arlington County's zoning department regarding STR regulations and HOA restrictions, as many Clarendon buildings have specific short-term rental policies that could impact profitability.

To obtain an Airbnb/STR permit in Clarendon, Virginia, you must apply through Arlington County since Clarendon is located within Arlington County boundaries. Submit your application to the Arlington County Zoning Office at 2100 Clarendon Boulevard, Suite 700, Arlington, VA 22201, or online through the county's permit portal. Required documents include a completed short-term rental registration form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), contact information for a local responsible party available 24/7, and parking plan documentation. The registration fee is approximately $150-200 annually, with additional inspection fees of around $100-150 if required. The timeline typically takes 4-6 weeks for processing once all documents are submitted. Specific Clarendon/Arlington requirements include limiting occupancy to 2 guests per bedroom plus 2 additional guests maximum, maintaining quiet hours from 10 PM to 8 AM, providing adequate parking (typically 1 space per rental), ensuring the property meets all building and fire safety codes, registering with the Virginia Department of Taxation for transient occupancy tax collection, and maintaining the registration certificate visibly posted in the rental unit. Properties must also comply with Arlington's zoning regulations, which may restrict STRs in certain residential areas.

Short-term rentals (STRs) are legal in Clarendon, Virginia, which is located in Arlington County, but they are subject to strict regulations implemented by Arlington County in 2019. The county requires STR operators to obtain a use permit and business license, limits rentals to no more than 90 days per year for non-hosted properties (where the owner is not present), and allows unlimited rentals for hosted properties where the owner resides on-site during the rental period. Properties must meet safety requirements including smoke and carbon monoxide detectors, and operators must collect and remit transient occupancy taxes. STRs are prohibited in certain zoning districts and must comply with parking requirements, noise ordinances, and occupancy limits. The regulations were updated in 2021 to include additional enforcement mechanisms and penalty structures, with violations potentially resulting in permit revocation and fines up to $10,000, making Arlington County one of the more restrictive jurisdictions for short-term rentals in the Washington D.C. metropolitan area.

The best areas for Airbnb investment in Clarendon, Virginia include the Clarendon-Ballston corridor along Wilson Boulevard, which attracts business travelers due to its proximity to major corporations like Nestle USA and Boeing, plus easy Metro access to downtown DC. The Market Common Clarendon area is highly desirable for its walkable urban village atmosphere, upscale dining, and the popular Clarendon Farmers Market that draws weekend visitors. Properties near Clarendon Metro station command premium rates due to the 15-minute commute to downtown Washington DC, making them attractive to government contractors and consultants. The residential streets between 10th Street and Fillmore Street offer quieter options that appeal to families visiting the area's parks and recreational facilities, while still maintaining easy access to the nightlife and restaurant scene that makes Clarendon a popular destination for young professionals and tourists exploring the greater Washington metropolitan area.

Airbnb properties in Clarendon, Virginia are subject to multiple lodging taxes including Virginia's state transient occupancy tax of 5.3% and Arlington County's local transient occupancy tax of 7.5%, totaling 12.8% on short-term rental stays under 30 consecutive days. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Virginia around 2019. Airbnb remits the collected taxes quarterly to the Virginia Department of Taxation and Arlington County on behalf of hosts, though individual hosts remain responsible for registering with local authorities and ensuring compliance. Properties rented for 30 days or longer are generally exempt from these transient occupancy taxes, and certain exemptions may apply for government employees on official business or stays related to medical treatment. Hosts must obtain a transient occupancy tax certificate from Arlington County and may need additional business licenses depending on the frequency and scale of their rental operations.

Starting an Airbnb in Clarendon, Virginia requires approximately $650,000-$750,000 in total initial investment. Property purchase costs around $550,000-$650,000 based on median condo and townhome prices in this Arlington neighborhood near Washington DC. Furnishing a 1-2 bedroom unit costs $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees in Arlington County include a $300 business license, $150 zoning compliance certificate, and potential $500-$1,000 in additional regulatory fees. Insurance costs $2,000-$3,500 annually for short-term rental coverage beyond standard homeowner's insurance. Monthly utilities average $150-$250 including electricity, gas, water, internet, and cable. First six months operating costs total approximately $8,000-$12,000 including utilities ($1,200), cleaning services ($2,400), Airbnb fees (3% of estimated $4,000 monthly revenue), maintenance supplies ($800), marketing ($500), and contingency funds for repairs and vacancy periods.

Airbnb properties in Clarendon, Virginia demonstrate strong profitability potential with average nightly rates ranging from $120-180 for one-bedroom units and $200-300 for larger properties, generating monthly revenues of $3,000-7,200 depending on occupancy rates of 65-80%. Operating expenses typically include mortgage payments ($1,800-3,500), utilities ($150-250), cleaning fees ($40-60 per turnover), property management (10-20% of revenue), insurance ($100-200), and maintenance ($200-400 monthly), resulting in net profit margins of 15-35% for well-managed properties. Success factors in this Arlington County neighborhood include proximity to Washington DC (generating high business traveler demand), excellent Metro accessibility via the Orange/Silver lines, walkable urban amenities, and professional property management that maintains 4.8+ star ratings. A typical case study involves a 750-square-foot one-bedroom condo purchased for $450,000 in 2019 that generates $4,200 monthly revenue with $2,800 in expenses, yielding $1,400 monthly profit and 22% annual ROI, while a three-bedroom townhouse averaging $6,500 monthly revenue achieves 28% profit margins due to higher nightly rates and strong family vacation demand during summer months.

Airbnb investments in Clarendon, Virginia typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's strong demand from business travelers and tourists visiting nearby Washington DC. Properties in Clarendon's urban core, particularly condos and townhomes within walking distance of the Metro station, can achieve occupancy rates of 70-85% with average daily rates of $120-180 depending on property size and amenities. Initial profitability is generally reached within 12-18 months, with investors seeing positive cash flow after accounting for mortgage payments, property management fees (typically 15-25%), cleaning costs, and Arlington County's short-term rental regulations. The market benefits from consistent year-round demand due to government contractors, consultants, and leisure travelers, with peak seasons during cherry blossom season and summer months driving higher rates. Properties purchased in 2020-2022 have shown particularly strong performance as the market recovered post-pandemic, with some investors reporting total returns exceeding 15% annually when factoring in property appreciation alongside rental income.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Clarendon, Virginia. Local real estate agents specializing in investment properties include Long & Foster Real Estate agents who focus on Arlington County investments, Keller Williams Arlington specialists, and RE/MAX Allegiance agents with STR expertise. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and acquisition assistance, Vacasa's investment advisory services, and AirDNA for market analytics and property identification. Local investment-focused companies include Arlington Property Group, which has been active since 2018, and Northern Virginia Real Estate Investors Association members who specialize in short-term rental acquisitions. Additional services include Mashvisor for property analysis, BiggerPockets' marketplace for connecting with local investors, and Roofstock's platform for turnkey rental properties, though their Airbnb-specific inventory in Clarendon varies seasonally.