Is Hampton, Virginia Good for Airbnb Investment?

To start an Airbnb in Hampton, Virginia, begin by researching local zoning laws and regulations through the Hampton Planning Department, as the city requires short-term rental operators to obtain a business license and may have specific zoning restrictions in residential areas. Contact Hampton's Business Development office at (757) 727-6108 to understand permit requirements, which typically include a business license ($30-50 annually) and potentially a conditional use permit depending on your property's zoning classification. Find a suitable property by searching areas like Buckroe Beach, downtown Hampton near Fort Monroe, or neighborhoods with good access to I-64 for tourist convenience, ensuring the property allows short-term rentals per HOA or lease agreements. Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, smart TV, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to attractions like NASA Langley Research Center, Hampton History Museum, and Virginia Air & Space Center, setting competitive rates based on comparable listings ($75-150/night depending on size and location). Manage your listing by responding to inquiries within an hour, maintaining a 4.8+ star rating, coordinating cleaning between guests (budget $40-60 per turnover), and staying compliant with Virginia's 5.3% state sales tax plus Hampton's local lodging tax requirements while keeping detailed records for tax purposes.

To identify profitable short-term rental properties in Hampton, Virginia, focus on locations within 2-3 miles of major attractions like NASA Langley Research Center, Fort Monroe National Monument, and Hampton University, as well as properties near the waterfront areas along the Chesapeake Bay and Hampton Roads harbor which attract tourists year-round. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, parking, outdoor spaces, and water views when possible, as these typically command $80-150 per night compared to $60-100 for standard properties. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue of $2,000-4,000 monthly exceeds traditional rental income by at least 30-50%, while researching competition density through Airbnb and VRBO searches to ensure no more than 15-20 active listings within a 1-mile radius. Utilize Hampton's tourism data showing peak seasons during summer months and military family relocation periods, leverage local real estate platforms like REIN and connect with Hampton Roads-area property management companies who understand the market dynamics driven by the military presence at Langley Air Force Base, NASA contractors, and maritime industry visitors, while ensuring compliance with Hampton's zoning regulations which generally allow STRs in residential areas with proper permits.

To obtain an Airbnb/STR permit in Hampton, Virginia, you must first contact the Hampton Planning Department at City Hall located at 22 Lincoln Street to determine zoning compliance, as short-term rentals are typically only permitted in certain residential zones with conditional use permits. Submit an application for a Conditional Use Permit along with required documents including property deed, site plan, floor plan showing maximum occupancy, proof of property insurance, contact information for a local property manager if you're non-resident, and parking plan demonstrating adequate off-street parking. The application fee is approximately $350-500, and you'll also need to obtain a business license from the Commissioner of Revenue's office for around $50-100 annually. Additional requirements include compliance with fire safety codes, maximum occupancy limits based on bedrooms and square footage, maintaining a guest registry, providing emergency contact information to neighbors, and ensuring quiet hours compliance. The approval process typically takes 60-90 days and includes a public hearing before the Planning Commission. Once approved, you must also register with the Virginia Department of Taxation for transient occupancy tax collection and remit the required 5% state tax plus any local hotel tax. Annual renewal is required with continued compliance monitoring by city inspectors.

Short-term rentals (STRs) are legal in Hampton, Virginia, but operate under specific regulations established by the city. Hampton requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential districts while prohibiting them in some neighborhoods. The city has implemented occupancy limits, parking requirements, and noise ordinances that STR operators must follow. Properties must meet safety standards including smoke detectors and emergency egress requirements. Hampton has been actively updating its STR regulations in recent years, with changes around 2020-2022 that clarified permitting processes and enforcement mechanisms. The city requires operators to maintain liability insurance and respond to neighbor complaints promptly. Some historic districts and certain residential zones may have additional restrictions or prohibitions on short-term rentals. Operators must also collect and remit local occupancy taxes, and the city has established penalties for non-compliance including potential license revocation for repeat violations.

The best Airbnb investment areas in Hampton, Virginia include the Buckroe Beach neighborhood, which attracts summer tourists and beachgoers seeking waterfront accommodations near the Chesapeake Bay, and the downtown Hampton area near the Hampton History Museum and St. John's Church, drawing heritage tourists and visitors to Fort Monroe National Monument. The Coliseum Central district benefits from proximity to the Hampton Coliseum, attracting guests attending concerts, sports events, and conventions, while areas near Langley Air Force Base capture military personnel, contractors, and families on temporary assignments. The Phoebus neighborhood offers charm for tourists visiting Fort Monroe and the Casemate Museum, and properties near Hampton University attract visiting families, prospective students, and academic conference attendees. The NASA Langley Research Center vicinity draws aerospace professionals, researchers, and business travelers, while areas close to Hampton Roads Transit stations appeal to visitors exploring the broader Hampton Roads region including Norfolk and Virginia Beach.

In Hampton, Virginia, Airbnb hosts are subject to both state and local lodging taxes. The Virginia state transient occupancy tax is 5.3% and applies to stays of less than 30 consecutive days. Hampton imposes an additional local transient occupancy tax of 7%, bringing the total tax rate to approximately 12.3% on short-term rental bookings. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automatic tax collection service, which began around 2019 for Virginia jurisdictions. Airbnb remits the collected taxes directly to the Virginia Department of Taxation and local tax authorities on behalf of hosts on a monthly basis. Hosts who collect taxes independently must register with the Virginia Department of Taxation and Hampton's Commissioner of Revenue, file monthly returns, and remit taxes by the 20th of the following month. Stays of 30 days or longer are generally exempt from transient occupancy taxes, and some jurisdictions may provide exemptions for government employees or certain non-profit organizations, though specific exemption details should be verified with Hampton's tax office.

Starting an Airbnb in Hampton, Virginia requires approximately $285,000-$320,000 in total initial investment. Property purchase represents the largest expense at $220,000-$250,000 based on median home prices in Hampton as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total approximately $2,000-$3,500. Virginia business license, short-term rental permits, and Hampton city fees amount to roughly $500-$1,200 annually. Insurance premiums for short-term rental coverage average $2,500-$4,000 per year, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable services require $1,500-$2,500 initially. First six months of operating expenses including utilities ($900-$1,200 monthly), cleaning services ($100-$150 per turnover), maintenance reserves ($200-$400 monthly), platform fees to Airbnb and VRBO (3-5% of bookings), property management software, and marketing costs total approximately $8,000-$12,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Hampton, Virginia typically generate annual revenues between $18,000-$35,000 for entire homes, with average daily rates ranging from $85-$140 depending on proximity to NASA Langley Research Center, Fort Monroe, and the waterfront areas. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Fort Monroe and the Hampton History Museum command premium rates, with some waterfront units achieving 70-80% occupancy rates and net profit margins of 25-35%. Success factors include strategic location within 10 miles of major attractions, professional photography, responsive host communication, and competitive pricing during peak military and NASA contractor travel periods. A typical 3-bedroom home purchased for $180,000-220,000 in Hampton's Buckroe Beach area can generate $28,000 gross revenue with $17,000 in expenses, yielding approximately $11,000 net profit annually, representing a 5-6% cash-on-cash return when factoring in mortgage payments, though properties closer to Langley Air Force Base and research facilities often outperform this baseline by 15-25%.

Airbnb investments in Hampton, Virginia typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to Norfolk Naval Base, Langley Air Force Base, and NASA Langley Research Center which drive consistent demand from military personnel, contractors, and business travelers. Properties within 10 miles of these installations command average daily rates of $85-120, with occupancy rates of 65-75% annually, while waterfront or historic district properties near Fort Monroe can achieve $130-180 per night during peak summer months. Initial investment recovery typically occurs within 7-9 years for properties purchased at Hampton's median home price of $280,000-320,000, with monthly gross rental income averaging $2,200-3,200 depending on property size and location, and investors generally reach profitability within 18-24 months after accounting for startup costs, furnishing, and initial marketing expenses.

STRSearch leads the national market for Airbnb investment property analysis and market data, providing comprehensive tools for identifying profitable short-term rental opportunities in Hampton, Virginia. Local real estate agents specializing in investment properties include The Liz Moore & Associates team, which has been active in the Hampton Roads market since 1953, and Howard Hanna Real Estate Services agents who focus on vacation rental investments in the Tidewater region. Awning, founded in 2017, offers full-service Airbnb property management and investment guidance specifically for the Virginia Beach-Hampton metropolitan area. Mashvisor provides national property analysis tools with specific data for Hampton's rental market, while RedAwning offers both property management and investment consulting services for short-term rentals throughout Virginia. Local investment-focused realtors like those at Rose & Womble Realty and Coldwell Banker Traditions have developed expertise in identifying properties near Hampton's attractions like Fort Monroe and the Virginia Air & Science Center. AirDNA supplies market intelligence and revenue projections for Hampton's short-term rental market, and companies like Vacasa and AvantStay provide property management services that can help investors maximize returns on their Hampton Airbnb investments.