Is Jamestown, Virginia Good for Airbnb Investment?

To start an Airbnb in Jamestown, Virginia, begin by researching local zoning laws and regulations through James City County's planning department, as Jamestown falls under their jurisdiction, noting that short-term rentals typically require a conditional use permit and must comply with residential zoning restrictions. Contact the Virginia Department of Health for lodging establishment permits if hosting more than four rooms, and ensure compliance with fire safety codes through the local fire marshal's office. Obtain necessary business licenses from James City County (estimated $50-100 annually) and register for Virginia state taxes including sales tax collection for stays under 30 days. Find a suitable property by searching areas near Colonial Williamsburg and Historic Jamestowne, with average home prices around $300,000-500,000, ensuring the property allows short-term rentals per HOA or lease agreements. Furnish the space with colonial or historic-themed decor to appeal to tourists visiting nearby attractions, including essential amenities like WiFi, linens, kitchen supplies, and safety equipment like smoke detectors and fire extinguishers as required by county codes. List your property on Airbnb and other platforms, highlighting proximity to Jamestown Settlement (2 miles), Colonial Williamsburg (8 miles), and Yorktown Battlefield (15 miles), with competitive pricing around $80-150 per night based on local market rates. Manage the property by establishing cleaning protocols between guests, maintaining 24/7 communication availability, coordinating with local cleaning services (typically $75-100 per turnover), and keeping detailed records for tax purposes while monitoring occupancy rates and guest reviews to optimize your listing performance.

To identify profitable short-term rental properties in Jamestown, Virginia, focus on locations within 2-3 miles of Colonial Williamsburg and Jamestown Settlement, prioritizing properties with water views of the James River or easy access to historic sites, as these command premium rates of $150-250 per night compared to $80-120 for standard properties. Target 3-4 bedroom homes built after 1990 with modern amenities, parking for 2+ vehicles, and outdoor spaces, as families visiting the historic triangle represent 65% of the market. Analyze pricing using AirDNA and Mashvisor to identify the $180-220 sweet spot for 3BR properties, while monitoring seasonal fluctuations where summer rates increase 40-60% due to Colonial Williamsburg's peak season. Research competition by studying the 150+ active STRs in the area, noting that properties within walking distance to Jamestown Beach or with colonial-themed decor achieve 15-20% higher occupancy rates. Utilize STR-specific tools like Rabbu for market analysis, coordinate with James City County for permit requirements, and leverage partnerships with Colonial Williamsburg's visitor services, as properties that offer package deals with historic attractions see 25% higher booking rates and average daily rates of $195 compared to $155 for standard listings.

To obtain an Airbnb/STR permit in Jamestown, Virginia, you must apply through James City County since Jamestown falls under their jurisdiction. Contact the James City County Planning Division at 101-F Mounts Bay Road, Williamsburg, VA 23185 or call (757) 253-6685 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, site plan showing parking areas, floor plan of the rental unit, proof of liability insurance (minimum $1 million), contact information for a local responsible party within 30 minutes of the property, and payment of application fees. The application fee is approximately $200-300 with an annual renewal fee of around $150. The approval timeline is generally 60-90 days from submission of a complete application. James City County specific requirements include maintaining a minimum of two parking spaces per rental unit, ensuring the property complies with all zoning regulations (STRs are permitted in certain residential districts with conditions), limiting occupancy to two persons per bedroom plus two additional persons, maintaining quiet hours from 10 PM to 8 AM, and having a local contact person available 24/7 to respond to complaints within 30 minutes. Properties must also pass safety inspections and comply with all building codes before permit issuance.

Short-term rentals (STRs) in Jamestown, Virginia are generally legal but subject to local regulations and zoning restrictions. As a small unincorporated community in James City County, Jamestown falls under the county's STR ordinances which typically require operators to obtain proper permits, comply with safety standards, and adhere to occupancy limits. The county has implemented registration requirements and may restrict STRs in certain residential zones to preserve neighborhood character, particularly given Jamestown's significant historical importance as the site of the first permanent English settlement in North America. Recent years have seen James City County refine its STR regulations around 2020-2022 to balance tourism revenue with resident concerns, including provisions for noise control, parking requirements, and limits on the number of guests. Properties near Historic Jamestowne and Jamestown Settlement may face additional restrictions due to preservation concerns and National Park Service proximity, and operators must also comply with Virginia state tax requirements including transient occupancy taxes.

The best areas for Airbnb investment in Jamestown, Virginia are Historic Jamestowne and Jamestown Settlement vicinity, which attract over 500,000 visitors annually to America's first permanent English settlement with peak seasons during spring and summer months when Colonial Williamsburg and Yorktown battlefield tourism is highest. The Jamestown Island area near the archaeological sites offers proximity to major attractions like the Jamestown Rediscovery excavation and replica ships, drawing history enthusiasts and school groups year-round. The residential neighborhoods along Jamestown Road (Route 31) between the historic sites and Williamsburg provide convenient access to both Jamestown attractions and Colonial Williamsburg, capturing overflow visitors during peak tourism periods from March through October. Areas near the Jamestown-Scotland Ferry terminal benefit from travelers using this scenic route across the James River, while properties within a 10-minute drive of Jamestown Settlement can capitalize on the 400th anniversary commemorative events that continue to drive heritage tourism, educational field trips, and special events throughout the year.

In Jamestown, 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 stays less than 30 days, which Airbnb automatically collects and remits to the Virginia Department of Taxation as of 2019. At the local level, James City County (where Jamestown is located) imposes an additional 5% transient occupancy tax on short-term rentals, bringing the total tax rate to approximately 10.3%. Hosts must register with James City County and file monthly returns by the 20th of the following month, remitting the local portion directly to the county treasurer. The county tax applies to all stays under 30 consecutive days with gross receipts exceeding $1,000 annually. Properties rented for 30 days or longer are generally exempt from these transient occupancy taxes, as are certain charitable or religious organization accommodations. Hosts should also be aware that Virginia sales tax of 5.3% may apply to ancillary services provided with the accommodation, though basic lodging is exempt from sales tax when the transient occupancy tax is properly collected.

Starting an Airbnb in Jamestown, Virginia requires approximately $285,000-$320,000 in total initial investment. Property purchase costs around $250,000 based on median home prices in the Jamestown area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials add approximately $2,000-$3,000. Permits and fees vary but expect around $500-$1,500 for business licenses, short-term rental permits, and any required inspections from James City County. Insurance costs including landlord and short-term rental coverage average $2,000-$3,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, water, internet, and cable typically cost $500-$1,000 initially. First six months of operating costs including utilities ($200/month), cleaning services ($100 per turnover), maintenance reserves ($300/month), platform fees (3% of bookings), and property management if outsourced (20-30% of revenue) can range from $8,000-$15,000 depending on occupancy rates and booking frequency.

Airbnb properties in Jamestown, Virginia typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$150 depending on proximity to Colonial Williamsburg and Jamestown Settlement. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-75 per turnover), property management (15-25% of revenue), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within 2 miles of historic attractions achieve occupancy rates of 65-75% with profit margins of 25-35%, while those further out see 45-55% occupancy and 15-25% margins. Success factors include historic charm features, professional photography, responsive hosting, and seasonal pricing strategies that capitalize on peak tourism from March through October. A typical 3-bedroom colonial-style home near the Jamestown-Scotland Ferry generates approximately $28,000 annually with $17,000 in expenses, yielding a net profit margin of 39%, while properties marketed as "Historic Triangle retreats" with period furnishings and proximity to Williamsburg can achieve premium rates and profit margins exceeding 40% due to the area's concentrated tourism appeal.

Airbnb investments in Jamestown, Virginia typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the area's proximity to Colonial Williamsburg and Historic Jamestowne which attract approximately 1.2 million tourists annually. Properties within 2-3 miles of Jamestown Settlement and the Colonial National Historical Park command premium nightly rates of $120-180, with occupancy rates averaging 65-75% during peak season (April-October) and 40-50% during off-season. Initial investments of $200,000-350,000 for 2-3 bedroom properties typically reach profitability within 18-24 months, with gross rental yields of 10-14% annually. The market benefits from consistent demand from history enthusiasts, school groups, and families visiting Williamsburg's theme parks, though investors should account for seasonal fluctuations and competition from established vacation rental companies like Vacasa and RedAwning that manage properties in the greater Williamsburg area.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering market analysis and property recommendations in Jamestown, Virginia. Local real estate agents in the Hampton Roads area who work with Airbnb investors include Keller Williams Realty agents specializing in investment properties, Coldwell Banker Traditions agents familiar with the Colonial Williamsburg tourism market, and RE/MAX Peninsula agents who understand vacation rental regulations in James City County. National services include Mashvisor, which provides Airbnb analytics and property search tools for the Virginia Beach-Norfolk metropolitan area, AirDNA for short-term rental market data and performance metrics, Awning for full-service Airbnb property management and acquisition assistance, and RedAwning's investment property platform. Local property management companies like Vacasa and RedAwning operate in the Williamsburg-Jamestown area to help investors manage their Airbnb properties, while investment-focused real estate firms such as HomeVestors and local investor groups in the Tidewater region provide additional resources for finding profitable vacation rental opportunities near historic Jamestown and the broader Colonial Triangle tourism corridor.