Is Lyon Park, Virginia Good for Airbnb Investment?

To start an Airbnb in Lyon Park, Virginia, begin by researching Arlington County's short-term rental regulations, which require hosts to obtain a Short-Term Rental License and comply with zoning restrictions that typically limit rentals to primary residences with a maximum of 30 days per year unless operating as a bed-and-breakfast. Apply for the necessary permits through Arlington County's Department of Community Planning, Housing and Development, including a business license ($30-50) and short-term rental permit ($200-300 annually), while ensuring compliance with fire safety codes and occupancy limits. Find a suitable property in Lyon Park's residential neighborhoods near Clarendon or Ballston, considering proximity to Metro stations which increases rental appeal, with average property values ranging $600,000-$900,000 for single-family homes. Furnish the space with quality amenities including Wi-Fi, kitchen essentials, linens, and local guidebooks, budgeting $5,000-$15,000 for initial setup depending on property size. Create compelling listings on Airbnb, VRBO, and other platforms with professional photography highlighting Lyon Park's walkability to restaurants and Metro access, setting competitive rates of $80-$150 per night based on seasonal demand and local events. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, coordinating with local cleaning services ($50-$80 per turnover), and keeping detailed records for tax purposes while monitoring Arlington County's evolving short-term rental policies and neighbor relations in this established residential community.

To identify profitable short-term rental properties in Lyon Park, Virginia, focus on properties within walking distance of the Clarendon-Ballston Metro corridor and near Clarendon Boulevard's dining and entertainment district, as this area attracts business travelers and tourists seeking convenient DC access. Target 2-3 bedroom condos or townhomes built after 1990 with modern amenities, parking spaces, and outdoor areas, as these typically command $150-250 per night compared to $80-120 for older units without parking. Analyze comparable STR rates using AirDNA and Mashvisor, which show Lyon Park properties averaging 65-75% occupancy with $3,000-5,000 monthly revenue potential due to proximity to Arlington Cemetery and DC attractions. Research competition by monitoring active Airbnb and VRBO listings within a 0.5-mile radius, noting that properties near Lyon Park Community Center and Clarendon Metro typically outperform those further from transit. Utilize STR-specific tools like Rabbu and AllTheRooms for Lyon Park market data, while checking Arlington County's zoning regulations and HOA restrictions, as some buildings prohibit short-term rentals, and leverage local real estate platforms like Bright MLS and LoopNet to identify properties under $600,000 that can generate 8-12% annual returns after expenses.

To obtain an Airbnb/STR permit in Lyon Park, Virginia (which is part of Arlington County), you must first apply through Arlington County's Department of Community Planning, Housing and Development by submitting an application online via their permit portal or in person at 2100 Clarendon Boulevard. Required documents include a completed short-term rental registration form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), emergency contact information, and parking plan documentation. The application fee is approximately $150-200 with an annual renewal fee of $100-125. You must also comply with Lyon Park's specific HOA requirements if applicable, maintain maximum occupancy limits based on bedrooms plus two additional guests, provide adequate parking (typically one space per rental), and ensure the property meets all fire safety codes including smoke and carbon monoxide detectors. The approval timeline typically takes 4-6 weeks for initial applications, and you must register with Virginia's Department of Taxation for transient occupancy tax collection. Once approved, you'll receive a registration certificate that must be displayed in the rental unit and renewed annually, with the county conducting periodic inspections to ensure ongoing compliance with zoning and safety requirements.

Short-term rentals (STRs) in Lyon Park, Virginia are subject to Arlington County's regulations, which generally allow STRs but with significant restrictions. As of 2023, Arlington County permits short-term rentals in residential areas including Lyon Park, but requires hosts to obtain a business license and comply with zoning requirements. STRs are limited to owner-occupied properties or properties where the owner lives on-site during rentals, with a maximum occupancy typically capped at 8 guests. The county has implemented noise ordinances, parking restrictions, and requires hosts to provide contact information to neighbors. Recent changes around 2021-2022 included stricter enforcement mechanisms and clearer guidelines for compliance. Lyon Park, being a residential neighborhood, must adhere to these county-wide regulations, and while not completely prohibited, the owner-occupancy requirement and other restrictions significantly limit STR operations compared to more permissive jurisdictions.

Lyon Park in Arlington, Virginia offers excellent Airbnb investment opportunities primarily due to its proximity to Washington DC and Reagan National Airport, making it highly attractive for business travelers, government contractors, and tourists visiting the nation's capital. The neighborhood's tree-lined streets and historic charm appeal to visitors seeking a quieter alternative to downtown DC hotels while maintaining easy Metro access via the Clarendon-Ballston corridor. The area benefits from consistent demand from Pentagon employees, federal workers, and consultants who prefer short-term rentals for extended business stays. Additionally, Lyon Park's walkability to Clarendon's dining and nightlife scene, combined with its residential character and parking availability, makes it particularly appealing to families and groups visiting DC attractions. The neighborhood's strong local amenities, including proximity to Arlington Cemetery and easy access to both downtown DC and Tysons Corner business district, ensure year-round occupancy potential from diverse traveler segments including medical professionals visiting nearby hospitals, university visitors, and leisure travelers exploring the greater Washington metropolitan area.

Airbnb properties in Lyon Park, Virginia are subject to multiple lodging taxes including Virginia's state transient occupancy tax of 5.3% and Arlington County's local transient occupancy tax of 7.5%, totaling 12.8% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2019-2020 for Virginia jurisdictions. Airbnb remits the collected taxes monthly to both the Virginia Department of Taxation and Arlington County on behalf of hosts, though hosts remain ultimately responsible for ensuring compliance and may need to register with local tax authorities. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes, and some jurisdictions may provide exemptions for stays by government employees or during certain circumstances, though specific exemption details vary by locality and hosts should verify current requirements with Arlington County's tax office and the Virginia Department of Taxation.

Starting an Airbnb in Lyon Park, Virginia requires approximately $850,000-$950,000 in total initial investment. Property purchase costs around $750,000-$850,000 based on median home prices in this Arlington neighborhood as of 2023-2024. Furnishing a 2-3 bedroom property for short-term rental typically costs $15,000-$25,000 including furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and West Elm. Initial setup expenses including professional photography, listing creation, and marketing materials run $2,000-$3,000. Arlington County requires a short-term rental permit costing $300 annually plus business license fees of approximately $50-$100. Insurance premiums for short-term rental coverage average $2,500-$4,000 annually through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable total around $1,500-$2,500. First six months of operating costs including utilities ($300-$500 monthly), cleaning services ($75-$150 per turnover), supplies and maintenance ($200-$400 monthly), platform fees to Airbnb and VRBO (3% of bookings), and property management if outsourced (15-25% of revenue) typically range from $8,000-$15,000 depending on occupancy rates and seasonal demand in the Washington DC metro area.

Airbnb properties in Lyon Park, Virginia typically generate annual revenues of $25,000-$45,000 for a one-bedroom unit and $35,000-$65,000 for larger properties, with average daily rates ranging from $85-$150 depending on 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 15-35% after all expenses, with successful properties achieving occupancy rates of 65-80% annually. Key success factors in this Arlington County neighborhood include proximity to Washington DC (driving premium rates), professional photography, responsive guest communication, and maintaining consistent 4.8+ star ratings. Properties within walking distance of Clarendon Metro station command 20-30% higher rates, while those offering parking spaces see increased bookings from business travelers. A typical two-bedroom townhouse in Lyon Park generating $50,000 annual revenue might net $12,000-$18,000 profit after expenses, representing a 24-36% profit margin, though performance varies significantly based on property condition, host engagement, and seasonal demand fluctuations.

Based on Lyon Park, Virginia market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in this Arlington County neighborhood, with median home values around $800,000-$1.2 million, can expect gross rental yields of 4-6% annually, with net returns after expenses, taxes, and management fees settling at the lower end due to high property costs. Most investors achieve profitability within 18-24 months, factoring in initial setup costs, furnishing, and marketing expenses, though this timeline extends to 30-36 months when including major renovations or premium property acquisitions. The proximity to Washington D.C., Reagan National Airport, and strong corporate demand from companies like Amazon, Booz Allen Hamilton, and various government contractors supports consistent occupancy rates of 65-75% annually, with average daily rates ranging from $150-$250 depending on property size and amenities.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Lyon Park, Virginia, local real estate agents specializing in short-term rental investments include Keller Williams Arlington (2018-present), RE/MAX Allegiance serving the Arlington area, and Compass Real Estate which expanded into the Northern Virginia market in 2019. National services include Mashvisor (founded 2014) for property analytics, AirDNA for market data analysis, Awning (launched 2020) for full-service Airbnb investment management, Roofstock for turnkey rental properties, and BiggerPockets for investor networking and education. Local property management companies serving Lyon Park include RedAwning, Vacasa (operating in Arlington since 2017), and AvantStay for premium short-term rental management. Additional services include AirbnbReady for property setup, Hostfully for property management software, and local contractors like Arlington Property Services for renovations targeting short-term rental optimization.