Is Virginia Beach, Virginia Good for Airbnb Investment?

To start an Airbnb in Virginia Beach, Virginia, begin by researching local regulations as the city requires short-term rental operators to obtain a Conditional Use Permit (CUP) from the Planning Department, which costs approximately $1,500-$2,000 and involves a public hearing process that can take 60-90 days. You'll also need a Virginia Beach business license ($50-$100 annually) and must comply with zoning restrictions that limit short-term rentals in certain residential areas. Find a suitable property by focusing on areas zoned for tourist accommodations or where CUPs are more readily approved, such as the Oceanfront district or specific residential zones that allow short-term rentals with proper permits. Purchase or lease the property ensuring it meets Virginia Beach's safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the space with quality furniture, linens, kitchen essentials, and amenities that appeal to beach visitors, budgeting $15,000-$30,000 for a complete setup depending on property size. Create your Airbnb listing with professional photos highlighting the beach proximity and local attractions, setting competitive rates based on Virginia Beach market analysis ($100-$400 per night depending on season and location). Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, and maintaining compliance with Virginia Beach's occupancy limits and noise ordinances while collecting and remitting the required 5.3% Virginia Beach occupancy tax plus Virginia's 5.3% state sales tax.

To identify profitable short-term rental properties in Virginia Beach, Virginia, focus on locations within 0.5-1 mile of the oceanfront, particularly between 1st and 40th Streets, as well as properties near Chesapeake Bay waterfront areas and the Virginia Aquarium district. Target 2-4 bedroom single-family homes, townhouses, or condos built after 1990 with parking, outdoor space, and beach/water views, ensuring properties allow STRs under Virginia Beach's zoning regulations which permit them in resort residential and some commercial districts. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (averaging $150-300/night in peak season, $80-150 off-season) exceeds traditional rental income by 40-60%, targeting purchase prices between $300K-600K for optimal ROI. Research competition density using Airbnb and VRBO searches, avoiding oversaturated areas with more than 15 listings per square mile while identifying underserved pockets near attractions like First Landing State Park or the Boardwalk. Utilize Virginia Beach-specific resources including the city's STR registration requirements, local property management companies like Sandbridge Realty or Siebert Realty, and monitor seasonal demand patterns tied to military PCS moves from nearby Naval Air Station Oceana, summer tourism peaks, and events at the Virginia Beach Convention Center.

To obtain an Airbnb/STR permit in Virginia Beach, Virginia, you must first register your property with the Virginia Beach Department of Planning and Community Development by submitting an application for a Short-Term Rental Registration Certificate, which can be done online through the city's permitting portal or in person at City Hall located at 2401 Courthouse Drive. Required documents include a completed application form, proof of property ownership or lease agreement with landlord consent, a site plan showing the property layout, proof of liability insurance with minimum $1 million coverage, contact information for a local responsible party available 24/7, and payment of the registration fee which is approximately $150-200 annually. The property must comply with Virginia Beach zoning requirements, maintain occupancy limits based on bedrooms (typically 2 guests per bedroom plus 2 additional), provide adequate parking spaces, install smoke and carbon monoxide detectors, and ensure the property meets all building and fire safety codes. The application review process typically takes 30-45 days, during which the city may conduct an inspection to verify compliance with safety and zoning requirements. Once approved, you must display the registration certificate number in all advertising, maintain guest registries, collect and remit applicable taxes including the Virginia Beach transient occupancy tax of 8%, and renew the registration annually by the expiration date to maintain legal operation status.

Short-term rentals (STRs) are legal in Virginia Beach, Virginia, but operate under strict regulations implemented in 2019 following years of community concerns about noise and neighborhood disruption. The city requires STR operators to obtain a conditional use permit, limits rentals to no more than 12 unrelated adults, mandates 24/7 local contact information, and requires properties to meet specific safety and parking requirements. STRs are prohibited in certain residential zoning districts and must maintain a minimum distance from schools, churches, and other STRs in some areas. The city has established a complaint-driven enforcement system with fines up to $1,000 per violation, and recent amendments in 2021-2022 have tightened noise restrictions and increased penalties for repeat offenders. Virginia Beach's approach is considered one of the more restrictive STR regulatory frameworks in Virginia, reflecting the city's balance between allowing property rights and protecting residential neighborhood character, particularly in oceanfront and resort areas where STR concentration is highest.

The most lucrative Airbnb investment areas in Virginia Beach include the Oceanfront/Resort District, which attracts millions of tourists annually to its 3-mile boardwalk, hosting events like the Neptune Festival and Something in the Water music festival, generating consistent seasonal demand from March through October. The Chesapeake Bay Bridge area offers strong potential due to its proximity to both beach attractions and the growing business district, appealing to corporate travelers visiting companies like STIHL Inc. and military personnel from nearby Naval Air Station Oceana. The Town Center district presents year-round investment opportunities with its upscale shopping, dining, and proximity to major employers like Geico and Christian Broadcasting Network, attracting business travelers and conference attendees. The Sandbridge area, while more secluded, commands premium rates for its pristine beaches and vacation rental market, particularly popular with families seeking quieter alternatives to the main resort strip. The Hilltop area offers good value with lower property costs while maintaining reasonable access to both Virginia Beach attractions and Norfolk's business district, making it attractive for longer-term stays and military relocations.

In Virginia Beach, Virginia, Airbnb hosts must collect and remit the state sales tax of 5.3% and the local transient occupancy tax of 8% on all short-term rental bookings, resulting in a combined tax rate of 13.3% on the total rental amount including cleaning fees. The Virginia Beach transient occupancy tax applies to any lodging rental of less than 30 consecutive days, while the state sales tax applies to accommodations under 90 days. Hosts can register directly with the Virginia Department of Taxation for state sales tax collection and with Virginia Beach's Revenue Office for the local occupancy tax, with monthly remittance typically required by the 20th of the following month for both taxes. Airbnb may collect these taxes automatically for hosts who opt into their tax collection service, which began around 2017-2018 for Virginia Beach, though hosts remain ultimately responsible for compliance. There are generally no exemptions for standard short-term rentals, though certain government and military travelers may qualify for exemptions under specific circumstances when proper documentation is provided at the time of booking.

The total cost to start an Airbnb in Virginia Beach, Virginia is approximately $485,000-$565,000. Property purchase costs around $400,000-$450,000 based on median home prices in desirable areas near the oceanfront. Furnishing a 3-bedroom property runs $15,000-$25,000 including beds, sofas, dining sets, appliances, linens, and decor to create an attractive rental space. Initial setup costs $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total $1,500-$2,500 including business license, short-term rental permit, and potential HOA approvals. Insurance increases $2,000-$3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities average $200-$300 monthly including electricity, water, internet, cable, and trash service. First six months operating costs reach $8,000-$12,000 covering utilities, cleaning services at $75-$125 per turnover, Airbnb platform fees, supplies replenishment, maintenance, and marketing expenses. Additional considerations include potential property management fees of 15-25% if using a management company, and setting aside 10-15% of gross revenue for ongoing maintenance and repairs.

Airbnb properties in Virginia Beach, Virginia typically generate annual revenues between $25,000-$65,000 depending on location and property type, with oceanfront properties commanding premium rates of $150-$300 per night during peak summer season (May-September) and $80-$150 during off-season. Operating expenses generally range from 40-60% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance costs. Properties within 2-3 blocks of the beach typically achieve 65-80% occupancy rates with profit margins of 25-35%, while inland properties see 45-60% occupancy with 15-25% margins. Success factors include proximity to Virginia Beach Boardwalk, professional photography, competitive pricing during Shamrock Marathon and Neptune Festival periods, and maintaining 4.8+ star ratings. A typical 3-bedroom beach house purchased for $400,000 in 2022 generated approximately $45,000 in gross rental income with $28,000 in expenses, yielding a 4.25% net cash return before mortgage considerations, while a 2-bedroom oceanfront condo achieved $52,000 revenue with $31,000 expenses for a 5.25% return.

Airbnb investments in Virginia Beach, Virginia typically generate annual ROI of 8-15% with cash-on-cash returns ranging from 12-22%, depending on property location and proximity to the oceanfront. Properties within 2-3 blocks of the beach command premium rates of $150-300 per night during peak summer season (May-September), while inland properties average $80-150 nightly. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points often reached by month 14-18 when factoring in seasonal demand fluctuations. The Virginia Beach market benefits from consistent tourism demand, military personnel relocations from nearby Naval Air Station Oceana, and corporate travelers, creating year-round occupancy rates of 65-75% for optimally managed properties. Investment properties in the Oceanfront district or Chic's Beach area typically see the highest returns, with some investors reporting cash-on-cash returns exceeding 25% in prime locations during strong tourism years, while properties require initial investments of $300,000-600,000 for suitable vacation rental units.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Virginia Beach, Virginia. Local real estate agents like The Cummings Group and Rose & Womble Realty have developed expertise in Airbnb investment properties in the Virginia Beach market since around 2018. National services include BiggerPockets for networking and deal analysis, Mashvisor for property analytics and market data, and AirDNA for short-term rental performance metrics. Local property management companies such as RedAwning and Vacasa offer turnkey Airbnb management services for investors. Real estate investment firms like Roofstock and Fundrise have expanded into the Virginia Beach market, while local agents at Berkshire Hathaway HomeServices and Coldwell Banker Anchor Real Estate provide market-specific knowledge for vacation rental investments. Additional services include STR Helper for property analysis, AllTheRooms Analytics for market research, and local property managers like Beach Realty and Siebert Realty who understand Virginia Beach's seasonal rental patterns and zoning regulations for short-term rentals.