Is Earlysville, Virginia Good for Airbnb Investment?

To start an Airbnb in Earlysville, Virginia, begin by researching Albemarle County's zoning regulations and short-term rental ordinances, as Earlysville falls under county jurisdiction rather than city limits, typically requiring a special use permit for properties zoned residential that want to operate as short-term rentals. Contact Albemarle County's Community Development Department to obtain the necessary special use permit application, which usually costs around $1,500-$3,000 and requires neighbor notification and potential public hearings. Find a suitable property in Earlysville, focusing on areas with good road access and proximity to Charlottesville attractions, with typical home prices ranging from $400,000-$800,000 depending on size and location. Obtain required permits including a business license from Albemarle County ($50-$100 annually), register for Virginia state sales tax collection, and ensure compliance with fire safety codes and health department requirements. Furnish the property with quality furniture, linens, and amenities targeting visitors to nearby University of Virginia, Monticello, and local vineyards, budgeting approximately $15,000-$25,000 for a complete setup. Create listings on Airbnb, VRBO, and other platforms with professional photography highlighting the rural charm and proximity to Charlottesville (about 15 minutes), setting competitive rates around $150-$300 per night based on local market analysis. Manage the property by establishing cleaning protocols, guest communication systems, and maintenance schedules, either personally or through local property management companies like RedAwning or Vacasa that serve the Charlottesville area, while maintaining compliance with the 5.3% Virginia sales tax and any applicable Albemarle County transient occupancy taxes.

For identifying profitable short-term rental properties in Earlysville, Virginia, focus on properties within 10-15 minutes of University of Virginia campus and Charlottesville attractions, as this area benefits from consistent academic visitor demand and proximity to Monticello and local wineries. Target 3-4 bedroom single-family homes or larger properties with outdoor spaces, parking, and modern amenities that can accommodate families and groups visiting UVA, with properties built after 1990 typically performing better due to lower maintenance costs. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40-50%, with average daily rates in Earlysville ranging $120-200 depending on size and amenities. Research competition within a 3-mile radius using Airbnb and VRBO searches, looking for gaps in availability during UVA events, graduation periods, and peak tourism seasons (April-October), while analyzing competitor occupancy rates and guest reviews to identify service gaps. Utilize tools like Rabbu, AllTheRooms, and local MLS data through Richmond-based real estate platforms, while consulting Albemarle County's zoning regulations and HOA restrictions, as some neighborhoods may prohibit short-term rentals, and consider properties near Route 29 corridor for easy airport access and visibility to travelers heading to Shenandoah National Park.

To obtain an Airbnb/STR permit in Earlysville, Virginia, you must apply through Albemarle County since Earlysville is an unincorporated community within the county. Submit your application to the Albemarle County Community Development Department located at 401 McIntire Road, Charlottesville, VA 22902, or apply online through their permit portal. Required documents include a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, parking plan, septic system approval (if applicable), and proof of liability insurance with minimum $1 million coverage. You'll need to pay an application fee of approximately $150-200 plus annual renewal fees of around $100. The property must comply with zoning regulations (typically allowed in residential areas with special use permits), meet fire safety requirements, provide adequate parking (usually 2 spaces minimum), and maintain septic system compliance if not connected to public sewer. The approval timeline is typically 60-90 days depending on completeness of application and any required public hearings. Contact Albemarle County at (434) 296-5832 for current requirements, as regulations may have been updated since 2023, and schedule any required inspections before beginning operations.

Short-term rentals (STRs) in Earlysville, Virginia are generally legal but subject to Albemarle County regulations since Earlysville is an unincorporated community within the county. As of 2023, Albemarle County allows STRs in most residential areas but requires operators to obtain a special use permit and comply with specific requirements including occupancy limits (typically 2 people per bedroom plus 2 additional), parking provisions, noise restrictions, and safety standards. The county prohibits STRs in certain zoning districts and has implemented a cap on the total number of permits issued in some areas to preserve neighborhood character. Recent changes around 2021-2022 strengthened enforcement mechanisms and added requirements for local contact persons available 24/7, though STRs remain permitted with proper licensing. Properties must also comply with state tax collection requirements and local fire safety inspections, with violations potentially resulting in permit revocation.

The best areas for Airbnb investment in Earlysville, Virginia are primarily concentrated around the Earlysville Forest and Free Union Road corridors, which offer proximity to both Charlottesville's University of Virginia (driving significant parent weekend and graduation traffic) and outdoor recreation opportunities at nearby Shenandoah National Park. The Proffit Road area is particularly attractive due to its accessibility to both UVA medical facilities and downtown Charlottesville, capturing business travelers and medical tourists visiting the renowned UVA Health System. Properties near the Rivanna River and along Route 743 benefit from the growing agritourism market, with several local wineries like Keswick Vineyards and Trump Winery drawing weekend visitors seeking rural retreats. The Free Union area, while more remote, attracts guests interested in equestrian activities and farm stays, particularly during Virginia's peak foliage season in October and spring months when outdoor activities peak. Investment properties within 15 minutes of Barracks Road Shopping Center perform well due to convenience for families visiting UVA students, while homes near the Earlysville Fire Department and community center area offer good access to local amenities while maintaining the rural charm that distinguishes short-term rentals from standard hotel accommodations in nearby Charlottesville.

Airbnb properties in Earlysville, Virginia are subject to Virginia state transient occupancy tax of 5.3% on gross receipts, which includes the base rate of 5% plus a 0.3% additional tax for tourism promotion. Albemarle County, where Earlysville is located, imposes an additional local transient occupancy tax of 2% on short-term rental accommodations under 30 days. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the Virginia Department of Taxation and Albemarle County on behalf of hosts through Airbnb's automated tax collection service, which began around 2019. Hosts who collect taxes independently must register with the Virginia Department of Taxation and file monthly returns by the 20th of the following month, along with quarterly filings to Albemarle County. Exemptions generally apply to stays exceeding 90 consecutive days, rentals to permanent residents, and accommodations provided to certain government employees or during declared emergencies, though hosts should verify current exemption criteria as regulations may change.

The total cost to start an Airbnb in Earlysville, Virginia would be approximately $385,000-$425,000. Property purchase represents the largest expense at $350,000-$375,000 based on median home prices in the Charlottesville metro area where Earlysville is located. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, bedding, kitchen essentials, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits from Albemarle County, and tax registrations. Insurance including landlord coverage and short-term rental protection adds $2,000-$3,000 annually. Utilities including electricity, water, internet, cable, and trash service cost approximately $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees to Airbnb and VRBO, marketing, and property management tools total $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and a 3-6 month cash reserve for vacancies and unexpected repairs.

Airbnb properties in Earlysville, Virginia typically generate annual revenues between $15,000-$35,000 for single-family homes, with average daily rates ranging from $80-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts in the Charlottesville metro area reporting annual profits of $8,000-$18,000 per property. Success factors include proximity to University of Virginia (20 minutes away), competitive pricing during peak seasons like graduation and football weekends, professional photography, responsive guest communication, and maintaining 4.8+ star ratings. Properties with unique features like historic charm, mountain views, or luxury amenities command premium rates up to $200+ nightly, while basic accommodations struggle below $70 nightly rates. The market benefits from year-round demand due to UVA events, wine tourism in nearby counties, and outdoor recreation, though winter months typically see 20-30% lower occupancy rates compared to spring and fall peak seasons.

Based on Earlysville, 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 proximity to University of Virginia. Properties within 15-20 minutes of UVA campus generally achieve higher occupancy rates of 65-75% annually, while more rural properties average 45-60% occupancy. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with average daily rates ranging from $85-140 depending on seasonality and university events. Properties requiring significant renovations may extend profitability timelines to 30-36 months, while turnkey properties in desirable locations near Charlottesville can achieve positive cash flow within 6-12 months. Market analysis from 2022-2024 indicates consistent demand driven by UVA visitors, wine country tourism, and business travelers, with peak seasons during university events, graduation, and fall foliage periods generating 20-30% premium rates.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Earlysville, Virginia. Local real estate agents specializing in investment properties include Keller Williams Realty agents who focus on the Charlottesville metro area, Coldwell Banker Residential Brokerage agents with vacation rental expertise, and RE/MAX Commonwealth agents familiar with Albemarle County's short-term rental regulations. National services like Mashvisor offer property analysis tools for the Virginia market, while AirDNA provides market data and revenue projections for Earlysville properties. RedAwning and Vacasa offer property management services for investors, and local property management companies such as Blue Ridge Mountain Rentals and Shenandoah Valley Property Management specialize in short-term rental operations. Investment-focused real estate companies like BiggerPockets-affiliated agents and local firms such as Virginia Properties and Investments help identify profitable Airbnb opportunities in the Earlysville area, leveraging the region's proximity to University of Virginia and Shenandoah National Park for consistent rental demand.