Is Portsmouth, Virginia Good for Airbnb Investment?

Potentially—Portsmouth, Virginia combines visitor demand with long-term real estate upside.

• Presents a promising opportunity, driven by its rich naval history, charming waterfront, and proximity to major Hampton Roads attractions.
• Current market conditions in Portsmouth benefit from consistent tourism, including visitors to the Naval Medical Center Portsmouth, Norfolk Naval Shipyard.
• Property values in Portsmouth offer a relatively accessible entry point compared to some other coastal Virginia cities.
• The city's ongoing revitalization efforts, combined with its appeal as a historic destination, suggest a positive investment potential for short-term rentals.

$800–$2,200 per month based on location, season, and property quality.

• Based on available market data and rental analytics, average Airbnb earnings in Portsmouth, Virginia typically range from $800 to $2,200 per month for standard properties.
• Seasonal variations show peak earnings during summer months (June through August) when revenue can increase by 25-40% due to tourism and naval activity.
• Properties near the Norfolk Naval Shipyard and downtown Portsmouth's entertainment district generally outperform suburban listings by approximately 20-30%.
• Key factors affecting earnings include proximity to military installations, walkability to restaurants and attractions, parking availability, and property condition.
• The market benefits from Portsmouth's strategic location within the Hampton Roads metropolitan area, providing steady demand from military personnel, business travelers.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with properties averaging $85-120 per night and occupancy rates around 65-75% due to the city's proximity to Norfolk Naval Base and downtown Norfolk attractions.
• The average payback period ranges from 8-12 years depending on initial investment and property type, with waterfront and historic district properties performing better.
• Compared to traditional long-term rentals yielding 6-8% ROI in Portsmouth's rental market where average rents are $1,200-1,500 monthly, short-term rentals can outperform by 2-4 percentage points.
• Properties near the Elizabeth River waterfront and within walking distance of Olde Towne Portsmouth tend to achieve the higher end of ROI ranges.

Portsmouth, Virginia averages 65–70% annual occupancy, with seasonal variation.

• Portsmouth, Virginia Airbnb properties typically maintain an average occupancy rate of approximately 65-70% annually.
• Spring and fall months generally see moderate occupancy rates of 60-65%, while winter months drop to approximately 45-55% as tourism declines and military personnel movements decrease.
• Portsmouth's occupancy rates tend to run slightly below Virginia's statewide average of 68-72% and the national Airbnb average of 70-75%.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The best Airbnb investment neighborhoods in Portsmouth, Virginia include **Olde Towne**, the historic waterfront district offering premium pricing due to its cobblestone streets, colonial architecture.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Portsmouth, Virginia requires short-term rental operators to obtain a business license and register their property with the city, typically costing between $50-100 annually.
• Properties must comply with zoning regulations that generally restrict short-term rentals to certain residential districts, with some areas requiring conditional use permits.
• Occupancy limits are typically set at two persons per bedroom plus two additional guests, with a maximum of 10-12 occupants total depending on the property size.
• Owner-occupancy requirements vary by zoning district, with some areas mandating that the owner reside on the property as their primary residence for at least 185 days per year.
• The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and passing safety inspections that verify smoke detectors, carbon monoxide detectors.
• Recent changes implemented around 2022-2023 have included stricter enforcement of noise ordinances, mandatory posting of house rules and emergency contacts, parking requirements of one space per bedroom.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Portsmouth, Virginia are subject to several fees and taxes including the state transient occupancy tax of 5.3% on gross receipts.
• Property owners must obtain a business license costing around $30-50 annually and register for a short-term rental permit with fees typically ranging from $100-200 per year.
• Additional requirements include Virginia state sales tax of 5.3% on rental income, potential homeowner association fees if applicable.
• Tourism promotion fees may apply at 1-2% of gross receipts, and some properties may be subject to additional municipal fees for zoning compliance or special use permits costing $200-500 depending on the property type and location within Portsmouth's jurisdiction.