8 Best Airbnb Markets in Virginia (Ranked for 2026)

Virginia’s short-term rental map is shaped by its geography and its price points. The highest-yielding Airbnb markets cluster in the Shenandoah Valley and along the coast, where demand is driven by national parks, beaches, and university towns rather than by big-city business travel. The 2026 data shows a clear spread.

Gross yields range from 12.4% in Luray, a small town at the edge of Shenandoah National Park, down to 5.5% in Arlington, where high home values cap returns even as occupancy stays strong. Median home values across the ranked set run from $267,000 in Lynchburg to $825,000 in Arlington, a gulf that puts entry-level and luxury buyers on the same playing field but with very different cash-flow math.

Gross yield, the headline metric here, divides a market’s median annual Airbnb revenue by its median home value. It captures cash-on-cash potential before expenses, but it’s not the whole story. Famous destinations like Richmond or the DC suburbs rarely make the top of the list because home prices outpace what short-term guests will pay per night.

The markets that do make the cut pair steady demand with home values that haven’t run away from rental income. To match with a local agent who knows the ground truth behind these numbers, start your search here.

Virginia Airbnb Market Rankings 2026 (and the City-by-City Breakdown)

Data as of July 11, 2026. Annual revenue is computed for each listing as ADR × occupancy × 365 on trailing-12-month data (July 2025–June 2026), gross before expenses. Table values are medians for each metric, so multiplying ADR by occupancy will not reproduce the revenue figure. Gross yield divides median revenue by median home value (Zillow ZHVI). See the full data methodology.

The headline revenue averages every listing, but the active-operator benchmark filters for listings with sustained booking activity. Underwriting against the active-operator number gives a more realistic revenue target for buyers planning to run a committed operation.

1. Luray: Shenandoah’s Gateway with Top-Tier Yields

Luray’s access to Shenandoah National Park helps the market lead Virginia at a 12.4% gross yield, placing it in the 78th percentile among 501 US markets. For active operators, median annual revenue reaches $39,669 with a home value of $319,511, keeping payback periods under nine years at this price point.

Seasonality is pronounced. Occupancy peaks at 54% in August, then drops to 23% in January, with summer and fall each contributing more than a quarter of annual revenue. The past year saw occupancy jump 31% and ADR climb 11% even as listings grew 48%, a sign that demand is keeping pace with new supply. The most common property is a 2-bedroom, but 4-bedrooms earn the most at $32,643 a year on $407 ADR.

For buyers, the $38,114 active-operator benchmark is the underwriting anchor. Luray’s yield profile is rare for a market with national-park demand and a ZHVI under $320K. See the full breakdown on Luray’s analytics page.

Who it fits. Buyers seeking a national-park play with a sub-$350K entry point and strong seasonality upside.

Regulation: A1 and A2 zoned properties in Luray allow short-term rentals by right, while R1 and R2 properties in growth areas allow them with restrictions. R1 or R2 properties outside growth areas and commercially or industrially zoned properties require a Conditional Use Permit. Confirm zoning and permit requirements for your property before purchase.

2. Virginia Beach: Coastal Scale with Summer Peaks

Yield at scale distinguishes Virginia Beach, which has 1,177 active full-time listings and a median gross yield of 11.4% (72nd percentile nationally). With a median annual revenue of $49,043 on a $429,777 home and an active-operator figure of $47,407, committed operators face a payback period just above nine years.

This is a classic summer market. Occupancy soars to 70% in July (ADR $328), then drops to zero in January. Summer alone accounts for 34% of annual revenue. Notably, listings contracted 31% year-over-year while ADR rose 4% and occupancy climbed 21%, signaling a supply squeeze. One-bedrooms are the most common, but six-bedrooms top the earnings chart at $69,547 per year.

Virginia Beach’s combination of high demand, large listing base, and strong seasonality makes it a fit for buyers who can handle the off-season lull. For a deeper look, see Virginia Beach’s analytics.

Who it fits. Investors seeking scale, summer cashflow, and a market with proven demand shocks.

Regulation: Virginia Beach requires short-term rentals to register with the city. Properties in the Sandbridge Special Service District are eligible for use as a short-term rental with a required zoning permit. Home sharing does not require a zoning permit but must be registered with the Commissioner of the Revenue. Review the city’s overlay and permit rules before buying.

3. Norfolk: Year-Round Demand and High Occupancy

Norfolk stands out for steady, year-round bookings and high occupancy, posting an 11.1% gross yield (70th percentile US) and a notable 62% median occupancy, compared to the US median of 45%. Operators see median annual revenue of $34,805 on a $312,659 home value, with an active-operator benchmark of $33,606 and payback just over nine years.

July occupancy peaks at 80% and remains at 45% in December, while spring and summer each contribute about 30% of revenue. In the past year, ADR jumped 24%, occupancy increased 2%, and listings rose 16%. The top earners are four-bedroom properties, making $43,830 annually.

Norfolk’s analytics page (see details) shows a market where supply growth hasn’t dented returns, and where high occupancy gives operators a buffer against rate dips.

Who it fits. Buyers who want urban bookings stability and a short payback period at a mid-tier price point.

Regulation: All short-term rentals in Norfolk require a zoning permit and business license. Additional requirements may apply depending on property type. Verify current requirements for your specific property before buying.

4. Lynchburg: Entry-Level Pricing and Steady Returns

Price-sensitive investors find Lynchburg appealing thanks to its lowest-in-class median home value of $267,771, a rare entry point among Virginia’s top short-term rental markets. The 8.5% gross yield places Lynchburg close to the US median (46th percentile nationally), with a median annual revenue of $22,881 and an active-operator payback horizon of about 12.2 years, reasonable for buyers prioritizing steady cashflow over rapid appreciation.

Seasonal demand shapes the local revenue calendar. Occupancy climbs to 66% in August, coinciding with back-to-school and late-summer travel, while January’s 28% occupancy signals the market’s quietest period. Summer and fall each contribute over a quarter of annual revenue, reflecting a consistent booking base through the academic and leisure seasons.

Both occupancy and ADR surged by 45% year-over-year in June 2026, a sign of robust momentum that helps offset the market’s modest average daily rate of $123, which is well below the US median of $232.

With 260 full-time listings and a bedroom mix dominated by one-bedrooms (180 listings, $8,870/year), underwriting to the $22,012 active-operator figure is prudent. Larger four-bedroom homes, though less common, command the highest earnings at $18,562 per year, suggesting potential for outsized returns for those willing to invest in bigger properties. For more, review Lynchburg’s analytics.

Who it fits. Investors looking for affordable entry and reliable demand in a college town setting.

Regulation: Lynchburg requires short-term rental registration, and rentals may not host more than four unrelated people. No off-street parking is required, and the rental space must comply with the Uniform Statewide Building Code. Verify current requirements for your specific property before buying.

5. Williamsburg: Historic Demand, High ADR, and Rate Compression

Williamsburg commands a much higher price point, though its gross yield of 8.5% (45th percentile US) matches Lynchburg’s. With a median home value of $470,861, operators see median annual revenue of $40,143 and an active-operator benchmark of $37,589, leading to a payback of 12.5 years.

The season in Williamsburg is sharply defined, as occupancy peaks at 59% in August and drops to just 3% in January. Summer alone generates 36% of annual revenue. In the past year, occupancy rose 46% even as ADR dropped 24%, while four-bedroom units top earnings at $50,253 per year.

Williamsburg’s analytics (see details) highlight a market where high rates are attainable, but operators must navigate strict seasonality. Underwrite to the active-operator number for a realistic target.

Who it fits. Buyers seeking a historic destination with high ADR and a strong summer season.

Regulation: Williamsburg allows short-term rentals only in owner-occupied single-family detached homes, with a special exception from the Board of Zoning Appeals required. Only one room may be rented at a time, with a maximum of two transient visitors per room, and rentals are limited to 104 nights per calendar year. Verify current requirements for your specific property before buying.

6. Charlottesville: University Town with Balanced Seasonality

Price trends in Charlottesville reflect a market where higher home values ($525,079 median) intersect with solid revenue performance, producing a gross yield of 8.0%. That figure places Charlottesville in the 39th percentile nationally, just below the US median of 9.0%, but with a competitive average daily rate of $218 that nearly matches the national average.

The payback period, at about 12.9 years using the active-operator revenue benchmark of $40,705, signals that hands-on hosts must plan for a longer investment horizon compared to lower-cost markets.

Seasonal patterns are shaped by the academic calendar and tourism, driving occupancy to a peak of 65% in August when rates moderate to $176, while January sees the lowest occupancy at 24%.

Revenue is distributed fairly evenly across the year, with fall (27%) and summer (26%) each contributing about a quarter of the total. Recent momentum has been strong. Occupancy climbed 14% and ADR surged 21% year-over-year, even as listings dropped 12%, pointing to a tightening supply that helps support pricing power.

Charlottesville’s analytics (see details) highlight a market where steady university and tourism demand drive bookings through most of the year. Investors should underwrite to the active-operator revenue given the city’s owner-occupancy regulations, and note the wide bedroom mix, with one-bedrooms offering the highest count and five-bedrooms delivering the top annual earnings at $89,723.

Who it fits. Buyers targeting a university-driven market with moderate seasonality and high ADR potential.

Regulation: Charlottesville requires an annual homestay permit and mandates owner occupancy for at least 185 days per year. The property owner must provide proof of ownership and residence during the application process. Verify current requirements for your specific property before buying.

7. Alexandria: Urban Occupancy, High Entry Cost

Alexandria’s 7.5% gross yield (34th percentile US) is driven by high occupancy (65%) and a $50,846 median annual revenue, but the median home value is steep at $677,578. The active-operator benchmark is $44,864, putting payback at 15 years for committed hosts.

June brings occupancy to 80%, with a low of 37% in January, and spring and summer together yield 58% of annual revenue. During the last year, occupancy climbed 33% and ADR rose 6%. Four-bedroom properties lead earnings at $51,535 per year, though one-bedrooms are most common.

Alexandria’s analytics (see details) highlight a market where occupancy is strong but high home values stretch payback periods. Underwrite to the active-operator revenue and factor in the city’s permit requirements.

Who it fits. Buyers seeking high occupancy in a historic urban setting and able to commit significant capital.

Regulation: Alexandria requires a Short-Term Residential Rental Permit for properties rented more than 10 days per year. Operators must comply with all applicable city rules and regulations. STRs in condos or HOAs must comply with association rules as well. Verify current requirements for your specific property before buying.

8. Arlington: High Occupancy, Low Yield at a Premium

Price remains the defining challenge in Arlington, where home values average $824,859, well above the US median and among the highest in Virginia. That premium, paired with a gross yield of 5.5% (just the 14th percentile nationally), means investors face a lengthy payback period of nearly 20 years using active-operator revenue. This dynamic positions Arlington as a market where long-term appreciation potential, rather than immediate cash flow, drives most investment decisions.

Momentum data underscores the area’s booking strength, with occupancy up 13% year-over-year in June and average daily rates surging 34% to $234. Seasonality shapes revenue is occupancy peaks at 69% in June, while November drops to 39%, and spring alone accounts for 34% of annual income.

The strong occupancy rate of 59% (well above the US median of 45%) reflects Arlington’s steady demand, likely fueled by business travelers and proximity to Washington, DC, but high property costs have kept rental yields low. The most common listings are compact 1-bedrooms, but the highest returns go to larger 4-bedroom homes, earning $55,328 annually at a $517 nightly rate, an underwriting consideration for buyers weighing scale versus entry cost.

Arlington’s analytics (see details) show that while bookings are steady, home values have outpaced rental income, limiting yield. This market suits buyers prioritizing appreciation or who already own property.

Who it fits. Buyers with an appreciation-first strategy or those leveraging existing property in a high-demand DC suburb.

Regulation: Arlington requires an accessory homestay permit for short-term rentals. Local zoning and HOA rules should be confirmed before listing. Verify current requirements for your specific property before buying.

Why Famous Virginia Markets Miss the Cut

Big-name markets like Richmond and the DC core are absent from this ranking for one reason. Price. While these cities attract steady demand and have strong tourism drivers, median home values have climbed faster than short-term rental income. The result is yields that lag behind the state’s best performers, making them appreciation plays rather than cash-flow markets. Investors chasing near-term returns will find better numbers in the smaller cities and vacation corridors that dominate this list.

How to Read These Rankings Before You Buy

Gross yield gives a snapshot of potential cash flow, but it’s only the starting point. The headline revenue averages all listings, including those with little or no activity, while the active-operator benchmark reflects what committed hosts actually earn.

Seasonality, property type, and local regulations can all swing returns dramatically. Always underwrite against the active-operator number, and verify the specific property’s eligibility and compliance before making an offer. These rankings are a map, not a guarantee, local knowledge and due diligence are essential.

Ready to find your Virginia STR agent? Get matched with a local expert or start your market deep-dive with Chalet Analytics. For buyers ready to act, connect with a Virginia agent now and turn these numbers into your next investment.