Is Henrico, Virginia Good for Airbnb Investment?

To start an Airbnb in Henrico, Virginia, begin by researching local zoning laws and regulations through Henrico County's Planning Department, as the county requires short-term rental operators to obtain a conditional use permit (CUP) in most residential zones, with applications typically taking 60-90 days and costing around $1,500-2,500. Contact the county's Community Development Department at (804) 501-4602 to understand specific zoning requirements for your property location, as some areas may prohibit short-term rentals entirely. Obtain necessary permits including a business license from Henrico County (approximately $50-100 annually), Virginia state tax registration, and ensure compliance with fire safety codes and building inspections. Find a suitable property by researching high-demand areas like near Richmond International Airport, Innsbrook, or Short Pump, considering factors like proximity to attractions, parking availability, and neighborhood compatibility. Purchase comprehensive furnishings including quality mattresses, linens, kitchen essentials, WiFi setup, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $5,000-15,000 for a complete setup. Create your Airbnb listing with professional photography, competitive pricing research (average nightly rates in Henrico range $75-150), and detailed descriptions highlighting local attractions like Maymont Park and downtown Richmond access. Manage your property by establishing cleaning protocols, guest communication systems, maintenance schedules, and consider hiring local property management companies like RedAwning or Vacasa if needed, while maintaining compliance with Henrico's occupancy limits (typically 2 guests per bedroom plus 2 additional) and parking requirements (usually 1 space per bedroom).

To identify profitable short-term rental properties in Henrico, Virginia, focus on locations within 15-20 minutes of downtown Richmond, near major attractions like the Richmond International Raceway, or close to business districts and hospitals for corporate travelers. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, parking, and outdoor spaces, as these appeal to families and groups visiting the area. Conduct pricing analysis by researching comparable STR properties on Airbnb and VRBO in Henrico's zip codes 23228, 23229, 23233, and 23294, aiming for properties that can generate $150-250 per night with 60-70% occupancy rates. Research competition density using AirDNA or Mashvisor to identify undersaturated neighborhoods, particularly in West End areas near Short Pump or Glen Allen where there's high demand but limited supply. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Richmond Association of Realtors, while monitoring Henrico County's STR regulations and permit requirements, and consider proximity to Virginia Commonwealth University, Richmond International Airport, and major employers like Capital One and Altria for consistent demand drivers.

To obtain an Airbnb/STR permit in Henrico, Virginia, you must first contact the Henrico County Planning Department at 4301 East Parham Road or call 804-501-4602 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement with landlord consent, a site plan or floor plan of the property, proof of liability insurance (minimum $1 million coverage), a business license from Henrico County, and documentation showing compliance with fire safety codes and building inspections. The application fee is approximately $150-200, with additional inspection fees of around $75-100. Henrico County requires that STR properties maintain off-street parking for each rental unit, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, and ensure 24/7 contact information is provided to neighbors and posted on the property. The property must pass health and safety inspections, including smoke detector and carbon monoxide detector verification. The timeline for approval typically takes 4-6 weeks from submission of a complete application, including scheduling and completing required inspections. Once approved, the permit must be renewed annually, and operators must collect and remit transient occupancy taxes to both Henrico County and the state of Virginia. Properties in certain residential zoning districts may face additional restrictions or require special use permits, so checking specific zoning requirements with the planning department is essential before beginning the application process.

Short-term rentals (STRs) are legal in Henrico County, Virginia, but operate under specific zoning and regulatory requirements established by the county. As of recent years, Henrico County allows STRs in certain residential zoning districts but requires operators to obtain proper permits and comply with safety standards, including fire safety inspections and occupancy limits. The county has implemented restrictions on the number of guests, parking requirements, and noise ordinances to address neighborhood concerns. STRs are generally prohibited in areas zoned for agricultural use and certain residential districts where they would conflict with the residential character. Recent legal changes have included stricter enforcement mechanisms and clearer definitions of what constitutes a short-term rental versus traditional lodging. Property owners must register their STRs with the county, maintain liability insurance, and ensure compliance with health and safety codes. The county has also established complaint procedures for neighbors and can revoke permits for repeated violations of noise, parking, or occupancy regulations.

The best Airbnb investment areas in Henrico, Virginia include the Short Pump district, which attracts business travelers and shoppers due to its proximity to major corporate offices, Short Pump Town Center mall, and numerous restaurants and entertainment venues. The Innsbrook area is highly attractive for corporate housing and extended stays given its concentration of office parks and business centers, particularly around the Innsbrook Corporate Center which hosts major companies like Altria and Capital One. The Glen Allen corridor along Broad Street (Route 250) offers excellent potential due to its central location between Richmond International Airport and downtown Richmond, making it ideal for both business and leisure travelers. The Tuckahoe/West End area near the University of Richmond provides opportunities for visiting families, prospective students, and academic conference attendees. The area around Richmond International Airport in eastern Henrico is valuable for airline crews, delayed passengers, and early morning flight travelers. Finally, the Sandston/Highland Springs area offers more affordable investment opportunities while still providing airport proximity and access to Richmond attractions, making it suitable for budget-conscious travelers and longer-term stays.

In Henrico County, Virginia, Airbnb hosts are subject to both state and local lodging taxes. The Virginia state transient occupancy tax is 5.3% on gross receipts from room rentals under 90 days, collected by the Virginia Department of Taxation with monthly remittance required if collections exceed $500 annually. Henrico County imposes an additional local transient occupancy tax of 8% on the same rental receipts, which must be collected by hosts and remitted monthly to the Henrico County Department of Finance by the 20th of the following month. The combined effective tax rate is 13.3% on short-term rental income. Hosts must register with both the state and county tax authorities, obtain the necessary permits, and maintain detailed records of all transactions. Exemptions typically apply to rentals exceeding 90 consecutive days, rentals to permanent residents, and certain government or charitable organization bookings. Airbnb may collect and remit these taxes automatically in some cases through voluntary collection agreements, but hosts remain ultimately responsible for ensuring compliance and should verify that taxes are being properly collected and remitted.

To start an Airbnb in Henrico, Virginia, expect total costs around $385,000-$425,000. Property purchase represents the largest expense at $350,000-$375,000 based on median home prices in Henrico County as of 2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Henrico County include business license ($50), short-term rental permit ($200-$500), and potential zoning compliance costs totaling $1,000-$2,000. Insurance for short-term rentals runs $2,000-$3,500 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable average $500-$800 initially. First six months operating costs including utilities ($1,200), cleaning services ($1,800), maintenance ($1,000), property management software ($300), and marketing ($500) total approximately $4,800. Additional considerations include potential HOA restrictions, local tax registration, and maintaining 3-6 months of mortgage payments as reserves, bringing the comprehensive startup investment to the upper end of this range.

Airbnb properties in Henrico, Virginia typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $75-$140 depending on proximity to Richmond and property 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 ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Short Pump Town Center and Innsbrook Corporate Center achieve higher occupancy rates of 65-75% compared to 45-60% in more residential areas, with successful hosts reporting net profit margins of 15-25% after all expenses. Key success factors include professional photography, rapid guest communication, strategic pricing using dynamic tools, and maintaining superhost status, with properties featuring amenities like pools, hot tubs, or proximity to major employers like Capital One and Altria commanding premium rates. Case studies from 2022-2023 show that well-managed 3-bedroom homes in desirable Henrico neighborhoods generated $28,000-$32,000 in annual revenue with net profits of $6,000-$9,000, while properties requiring significant renovations or lacking professional management often struggled to achieve profitability above 10%.

Airbnb investments in Henrico, Virginia typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, depending on property location and management efficiency. Properties near Richmond International Airport and Short Pump area command higher nightly rates of $85-140, while suburban locations average $65-95 per night. Initial profitability usually occurs within 8-14 months after accounting for setup costs, furnishing, and marketing expenses. The Henrico market benefits from consistent business travel demand, Virginia Commonwealth University events, and tourism to nearby Richmond attractions, with occupancy rates averaging 65-75% annually. Properties requiring minimal renovation in established neighborhoods like Glen Allen or Innsbrook typically achieve break-even faster, around 6-10 months, while fixer-uppers may take 12-18 months to reach consistent profitability. Cash-on-cash returns are strongest for investors purchasing properties under $300,000 with 20-25% down payments, generating monthly cash flows of $800-1,500 after expenses including cleaning, utilities, insurance, and platform fees.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Henrico, Virginia, using data analytics and market insights. Local real estate agents specializing in Airbnb investments in the Richmond metro area include The Steele Group at Keller Williams, Long & Foster's investment specialists, and RE/MAX Commonwealth agents who focus on rental properties. National services like Awning (founded 2017), Mashvisor, and AirDNA provide market analysis and property recommendations for the Henrico market. Local property management companies such as RedAwning, Vacasa, and Richmond Short Term Rentals offer full-service Airbnb management. Investment-focused real estate companies like Roofstock and Arrived Homes occasionally feature Henrico properties, while local firms such as River City Real Estate Group and Virginia Investment Properties specialize in helping investors identify cash-flowing rental opportunities in desirable neighborhoods like Short Pump, Innsbrook, and areas near Richmond International Airport.