Is Davis, West Virginia Good for Airbnb Investment?

To start an Airbnb in Davis, West Virginia, begin by researching local zoning laws and regulations through Tucker County's planning office, as Davis may require short-term rental permits or business licenses, and check with the West Virginia Department of Revenue for tax obligations including the state's 6% sales tax on lodging. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or local agents familiar with the Canaan Valley area, considering proximity to popular attractions like Blackwater Falls State Park and Canaan Valley Resort. Once you secure a property, obtain necessary permits from Tucker County, which may include a business license, occupancy permit, and potentially a conditional use permit depending on zoning. Furnish the property with mountain-appropriate amenities including heating systems suitable for harsh winters, outdoor gear storage, and rustic yet comfortable furniture that appeals to outdoor enthusiasts visiting for skiing, hiking, and mountain biking. Create your Airbnb listing with high-quality photos showcasing mountain views and proximity to outdoor activities, pricing competitively with other Canaan Valley area rentals (typically $100-300 per night depending on size and season). Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with mountain properties, and consider using property management companies like Vacasa or AvantStay if you're not local, while maintaining compliance with West Virginia's lodging tax requirements and any evolving Tucker County short-term rental regulations.

To identify profitable short-term rental properties in Davis, West Virginia, focus on locations within walking distance of Blackwater Falls State Park, Canaan Valley Resort, and downtown Davis, as these areas attract year-round tourists for outdoor activities like skiing, hiking, and whitewater rafting. Target properties with 2-4 bedrooms, outdoor spaces like decks or fire pits, hot tubs, and rustic cabin aesthetics that appeal to adventure seekers and families, while ensuring reliable internet for remote workers drawn to the area's natural beauty. Analyze pricing by researching comparable Airbnb and VRBO listings within a 5-mile radius, noting seasonal variations with peak rates during ski season (December-March) and fall foliage (September-October), typically ranging from $150-400 per night depending on size and amenities. Study competition using AirDNA and Mashvisor to assess occupancy rates and revenue potential, while monitoring listings on platforms like Airbnb, VRBO, and local vacation rental companies such as Canaan Valley Rentals. Utilize tools like BiggerPockets for investment analysis, STR Helper for market research, and connect with local real estate agents familiar with Tucker County's vacation rental regulations and seasonal tourism patterns to identify emerging opportunities in this growing outdoor recreation market.

To obtain an Airbnb/STR permit in Davis, West Virginia, you must first contact the Tucker County Planning Commission at 304-478-2414 or visit their office at 200 Linden Street, Parsons, WV 26287, as Davis falls under Tucker County jurisdiction. Required documents include a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), septic system inspection certificate, well water testing results if applicable, fire safety inspection report, and business license from the West Virginia Secretary of State. The application fee is approximately $150 with an annual renewal fee of $75, plus a $50 inspection fee. Submit your complete application to Tucker County Planning Commission, schedule required inspections for fire safety and septic systems, obtain your business license from the state, and await final approval. The entire process typically takes 4-6 weeks from submission to approval. Davis-specific requirements include maintaining adequate parking for guests, ensuring compliance with the town's noise ordinance, providing emergency contact information to neighbors within 500 feet, and adhering to the maximum occupancy limits based on septic system capacity and square footage (typically 2 people per bedroom plus 2 additional).

Short-term rentals (STRs) are generally legal in Davis, West Virginia, as the state does not have comprehensive statewide regulations prohibiting them, and Tucker County (where Davis is located) has not enacted blanket bans on STRs. However, operators must comply with standard business licensing requirements, collect and remit state sales tax and local occupancy taxes, and ensure properties meet basic safety and zoning requirements. Davis, being a small mountain town popular for outdoor recreation near Canaan Valley Resort and Blackwater Falls State Park, has seen increased STR activity, but the town itself has minimal specific STR ordinances beyond requiring business licenses and adherence to residential zoning laws. Properties in certain residential zones may face restrictions on the number of guests or parking requirements, and operators should verify compliance with local fire safety codes and septic system regulations common in rural West Virginia communities. Recent changes have primarily involved increased enforcement of existing tax collection requirements rather than new prohibitive legislation, as the state and local governments generally view STRs as beneficial to tourism revenue in recreational areas like Davis.

The best Airbnb investment areas in Davis, West Virginia center around the downtown historic district near Main Street, which attracts visitors year-round due to its proximity to Blackwater Falls State Park (established 1937) and Canaan Valley Resort, offering easy access to hiking, skiing, and outdoor recreation that drives consistent tourism demand. The Canaan Valley area itself, particularly properties within 2-3 miles of the ski resort and state park, presents excellent opportunities as it serves both winter sports enthusiasts visiting Timberline Four Seasons Resort and summer visitors exploring the Monongahela National Forest, with companies like Snowshoe Mountain Corporation drawing significant seasonal traffic. Properties near the Purple Fiddle music venue and along Route 32 benefit from the town's growing reputation as a mountain biking and outdoor adventure destination, attracting visitors to events like the annual Leaf Peepers Festival and various mountain biking competitions, while the proximity to Fairfax Stone Historical Monument and Thomas (3 miles away) expands the potential guest base seeking authentic Appalachian experiences and railroad history tourism.

Davis, West Virginia imposes a 6% municipal lodging tax on short-term rental accommodations including Airbnbs, which is collected directly from guests at the time of booking and must be remitted monthly to the Davis Town Office by the 15th of the following month. Additionally, West Virginia state transient occupancy tax of 6% applies to all lodging stays under 30 days, with collection handled through the West Virginia State Tax Department and quarterly remittance required for properties generating over $2,400 annually in rental income. Tucker County levies a 3% county occupancy tax that must be collected from guests and remitted quarterly to the Tucker County Commission. Property owners must register with each taxing authority and obtain separate tax identification numbers, with penalties of 10% per month applied for late remittance. Exemptions include stays exceeding 30 consecutive days, rentals to permanent residents establishing domicile, and accommodations provided to displaced persons during emergencies, though documentation must be maintained for all claimed exemptions and properties generating less than $600 annually in gross rental income are exempt from state reporting requirements.

To start an Airbnb in Davis, West Virginia, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in rural West Virginia markets. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in West Virginia are relatively minimal at $200-$500, covering business licenses and potential local registration requirements. Insurance costs run $1,200-$2,000 annually for short-term rental coverage. Utility setup and deposits total approximately $500-$800 for electricity, water, internet, and cable services. First six months operating costs including utilities ($600-$900), cleaning supplies ($300), maintenance reserves ($1,000), marketing ($500), and property management software ($300) total roughly $2,700-$3,600. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $3,000-$5,000 to initial capital requirements.

Airbnb properties in Davis, West Virginia show moderate profitability potential, with average nightly rates ranging from $85-150 depending on property size and amenities, generating approximately $15,000-35,000 in annual gross revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-55% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Canaan Valley Resort and Blackwater Falls State Park command premium rates, with ski-season bookings (December-March) generating 35-40% of annual revenue at rates 20-30% above summer averages. Successful operators like those managing cabins in the Canaan Valley area report net profit margins of 25-35% by focusing on outdoor recreation amenities, hot tubs, and pet-friendly policies, while properties lacking these features or proper marketing typically see margins below 15%. The market benefits from Davis's proximity to outdoor attractions and limited hotel inventory, though success heavily depends on property condition, professional photography, dynamic pricing strategies, and maintaining 4.8+ star ratings to compete effectively in this seasonal tourism market.

Based on Davis, West Virginia market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the area. Properties near outdoor recreation areas like Blackwater Falls State Park or Canaan Valley tend to perform better, achieving the higher end of these ranges. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically reached in 10-12 years. The market benefits from year-round tourism including skiing in winter and hiking/outdoor activities in warmer months, though seasonal fluctuations can impact monthly returns by 20-30% between peak and off-peak periods. Average daily rates range from $80-150 depending on property size and amenities, with occupancy rates averaging 55-70% annually for well-managed properties in prime locations.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Davis, West Virginia. In the Davis area, local real estate agents like those at Mountain State Realty and Canaan Valley Real Estate have experience with vacation rental properties given the region's proximity to ski resorts and outdoor recreation areas. National services such as Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools for Airbnb investments in West Virginia markets. Local property management companies like Canaan Valley Rentals and Timberline Property Management offer services that can help investors understand which properties perform best as short-term rentals in the area. Additionally, real estate investment firms such as Roofstock and Awning operate nationally and can assist with identifying and purchasing turnkey Airbnb properties in smaller markets like Davis, while local mortgage brokers and investment advisors familiar with the Canaan Valley and Tucker County markets can provide financing and investment guidance specific to the region's seasonal rental dynamics.