Is Lyon Village, Virginia Good for Airbnb Investment?

To start an Airbnb in Lyon Village, Virginia, begin by researching Arlington County's short-term rental regulations, which require hosts to obtain a Short-Term Rental Permit from the county and comply with zoning restrictions that typically limit rentals to primary residences with a maximum of 30 days per year unless you're an owner-occupant. Contact Arlington County's Department of Community Planning, Housing and Development at 703-228-3525 to obtain the necessary permits, which include a business license ($30-50), short-term rental permit ($150-300 annually), and potentially a Certificate of Occupancy inspection. Find a property in Lyon Village by working with local real estate agents familiar with the area's $800,000-$1.5 million single-family home market or consider renting a property with landlord permission for subletting. Furnish the space with quality furniture, linens, and amenities targeting business travelers and tourists visiting nearby Washington D.C., ensuring compliance with Arlington's safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting Lyon Village's proximity to Georgetown, Rosslyn Metro, and the Potomac River, setting competitive rates of $150-300 per night based on local market analysis. Manage your listing by maintaining 24/7 guest communication, coordinating cleaning services, handling maintenance issues promptly, collecting and remitting Arlington County's 5.75% sales tax plus 7% transient occupancy tax, and keeping detailed records for annual permit renewal and tax reporting purposes.

To identify profitable short-term rental properties in Lyon Village, Virginia, focus on properties within 0.5 miles of the Rosslyn Metro station and Clarendon-Ballston corridor, as this area attracts business travelers and tourists visiting Washington DC. Target 1-2 bedroom condos or small townhomes built after 1980 with modern amenities, parking spaces, and outdoor areas, as these features command premium rates of $150-250 per night in the Lyon Village market. Analyze comparable STR properties using AirDNA and Mashvisor to identify average daily rates, occupancy rates above 65%, and revenue potential of $3,000-5,000 monthly, while researching Arlington County's STR regulations and HOA restrictions. Study competition within a 1-mile radius using Airbnb and VRBO searches, focusing on properties near Key Bridge, Arlington Cemetery, and Georgetown access points, as these locations consistently achieve higher occupancy rates. Utilize tools like Rabbu, STR Helper, and local real estate platforms like Bright MLS to identify properties under $600,000 that can generate 8-12% annual returns, while partnering with Arlington-based property management companies like RedAwning or Vacasa who understand the Lyon Village market dynamics and can optimize pricing strategies based on seasonal demand from Pentagon contractors, university visitors, and DC tourists.

To obtain an Airbnb/STR permit in Lyon Village, Virginia, you must first apply through Arlington County since Lyon Village is located within Arlington County jurisdiction. Begin by submitting an application to the Arlington County Zoning Office located at 2100 Clarendon Boulevard, submitting Form 4444 (Use Permit Application) along with a detailed site plan, proof of property ownership or lease agreement, certificate of occupancy, and a neighborhood notification list including all property owners within 300 feet of your property. The application fee is approximately $1,850 for a use permit, plus additional fees for inspections and notifications totaling around $2,200. You must also obtain a business license from Arlington County for approximately $50 annually and register for transient occupancy tax collection. The process typically takes 12-16 weeks from submission to approval, including a mandatory public hearing before the County Board. Lyon Village specific requirements include compliance with the R-6 zoning district regulations, maintaining off-street parking for guests, ensuring the property remains owner-occupied if operating a homestay (renting individual rooms), limiting occupancy to no more than 2 guests per bedroom with a maximum of 6 guests total, and adhering to noise ordinances particularly strict in this residential neighborhood. You must also provide annual reporting to the county and maintain liability insurance of at least $1 million, with final approval contingent on passing safety inspections and demonstrating compliance with all fire and building codes.

Short-term rentals (STRs) are generally prohibited in Lyon Village, Virginia, as this residential neighborhood falls under Arlington County's restrictive STR regulations that were significantly tightened in 2019-2020. Arlington County allows STRs only in specific commercial and mixed-use zoning districts, while residential areas like Lyon Village, which consists primarily of single-family homes and is zoned R-6 (low-density residential), are excluded from permitted STR operations. The county implemented these restrictions following community concerns about housing availability and neighborhood character, requiring STR operators to obtain special use permits and limiting operations to properties in zones like C-1, C-2, and certain mixed-use districts. Lyon Village residents cannot legally operate platforms like Airbnb or VRBO from their homes, and the county actively enforces these regulations with fines up to $10,000 per violation, making this historic neighborhood near Key Bridge and Georgetown one of many Arlington residential areas where traditional short-term rental business models are not permitted under current zoning laws.

Lyon Village 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 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 government contractors, consultants, and lobbyists who frequently travel to the region for extended stays, particularly around the Pentagon and various federal agencies. Corporate relocations and temporary assignments with companies like Booz Allen Hamilton, Lockheed Martin, and various defense contractors in the Arlington-Alexandria area create steady demand for short-term furnished rentals. The neighborhood's walkability to Clarendon's dining and nightlife scene, combined with its residential feel and parking availability, makes it particularly appealing to families visiting the Smithsonian museums and DC attractions who prefer a suburban base with metro connectivity.

Airbnb properties in Lyon Village, 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 6.75%, totaling approximately 12.05% in combined lodging taxes. These taxes apply to short-term rentals 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 these collected taxes monthly to the Virginia Department of Taxation and Arlington County on behalf of hosts, though hosts must still register with local tax authorities and may need to obtain business licenses. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes, and some jurisdictions may provide exemptions for certain types of accommodations or extended stays, but most standard Airbnb bookings in Lyon Village will be subject to the full combined rate with automatic collection and remittance handled by the platform.

To start an Airbnb in Lyon Village, Virginia, the total costs would be approximately $1,150,000-$1,350,000. Property purchase represents the largest expense at $900,000-$1,100,000 for a median 2-3 bedroom home in this upscale Arlington neighborhood near Georgetown. Furnishing costs range $25,000-$40,000 for quality furniture, bedding, kitchenware, and décor suitable for short-term rentals. Initial setup including professional photography, listing creation, smart locks, and welcome amenities costs $3,000-$5,000. Arlington County requires a short-term rental permit ($300), business license ($50), and potential zoning compliance fees totaling $500-$1,000. Insurance including landlord coverage and short-term rental protection runs $3,000-$5,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable cost $1,500-$2,500. First six months operating costs including utilities ($1,800), cleaning services ($3,600), Airbnb fees (3% of estimated $18,000 revenue), maintenance reserves ($2,000), and marketing expenses total approximately $8,500-$12,000. Property taxes and HOA fees in Lyon Village add another $15,000-$20,000 for six months, bringing the comprehensive startup investment to $1,150,000-$1,350,000 before generating revenue.

Airbnb properties in Lyon Village, Virginia, demonstrate strong profitability potential with average nightly rates ranging from $120-180 for one-bedroom units and $200-300 for larger properties, generating monthly revenues of $3,000-7,200 depending on occupancy rates of 65-75%. Operating expenses typically include mortgage payments ($2,000-4,000), utilities ($150-250), cleaning fees ($40-60 per turnover), property management (10-15% of revenue), insurance ($100-200), and maintenance ($200-400 monthly), resulting in net profit margins of 15-25% for well-managed properties. Success factors include proximity to Washington DC (driving premium rates), walkability to Lyon Village Shopping Center, updated amenities like high-speed internet and modern appliances, and professional photography showcasing the neighborhood's tree-lined streets and historic charm. A case study of a renovated 2-bedroom townhouse on North Highland Street achieved $4,800 monthly revenue with $3,600 in total expenses, yielding 25% profit margins in 2023, while a studio apartment near Clarendon Boulevard generated $2,800 monthly with $2,200 expenses for 21% margins. Properties within 0.3 miles of Metro stations and featuring parking spaces command 20-30% premium rates, with hosts like Sarah Chen reporting $68,000 annual revenue from her Lyon Village duplex after $52,000 in expenses, demonstrating the neighborhood's appeal to business travelers and tourists seeking upscale accommodations near Arlington's commercial districts.

Airbnb investments in Lyon Village, Virginia typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in this Arlington neighborhood, with average purchase prices around $800,000-$1.2 million, can expect nightly rates of $150-$250 depending on size and amenities, achieving 65-75% occupancy rates due to proximity to Washington DC and Reagan National Airport. Initial profitability usually occurs within 18-24 months after accounting for furnishing costs, permits, and operational expenses, with gross rental yields averaging $45,000-$65,000 annually for typical 2-3 bedroom units. The strong corporate travel demand and tourist traffic to the DC metro area supports consistent bookings, though investors should factor in Arlington County's short-term rental regulations and higher property taxes when calculating net returns.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Lyon Village, Virginia, local real estate agents specializing in short-term rental investments include Keller Williams Realty McLean with agents like Sarah Mitchell and David Chen who focus on Arlington County investment properties, Long & Foster Real Estate with specialist Jennifer Walsh, and Compass Real Estate featuring agent Michael Torres who has extensive experience in the Lyon Village market since 2019. RedAwning Property Management provides comprehensive Airbnb setup and management services throughout Northern Virginia, while AirDNA offers market analytics specifically for the Arlington area. National services include Mashvisor for investment property analysis, BiggerPockets for investor networking and deal sourcing, and Awning Property Management which expanded into the Virginia market in 2020. Local companies such as Capital City Property Group and Arlington Investment Realty specialize in identifying high-yield rental properties in Lyon Village's prime locations near Metro stations, while services like STR Helper and Host Fully provide turnkey Airbnb setup solutions for new investors entering the Lyon Village market.