Virginia's short-term rental market is full of surprises, with various destinations that appeal to history buffs, outdoor enthusiasts, and even beachgoers. In 2025, certain cities and towns are standing out as smart choices for Airbnb hosts, and–from the mountains to the coast–the best Airbnb markets in Virginia are as diverse as the state itself.
In this post, we've highlighted five of the best short-term rental markets in Virginia worth exploring. Read on and discover where Virginia's top markets are making waves this year.
- Rileyville: Best for ROI
- Roanoke: Best for steady income
- Alexandria: Best high-end investment
- Lynchburg: Best affordable investment
- Fredericksburg: Best growing market
How we picked the best Airbnb markets in Virginia
Every short-term rental market has its strengths, but finding the right one means looking deep into the data. For Virginia, we focused on markets that offer hosts something unique, like strong financial returns, a steady stream of visitors, or untapped potential waiting to be explored.
Here's what we considered to highlight the best Airbnb markets in Virginia:
- Earning potential: We prioritized locations with competitive revenue, high average daily rates, and good occupancy trends.
- Host-friendly policies: Cities with clear, manageable short-term rental rules made the cut for their ease of operation.
- Steady demand: Consistency matters, so we chose markets that see visitor interest all year long, not just during peak seasons.
- Emerging growth: Destinations showing rising interest from travelers or growing property demand earned a spot.
- Travel appeal: From historic districts to natural escapes, we selected markets with distinct characteristics.
These criteria, paired with data-driven insights from Forecast in SummerOS, helped us identify the best short-term rental markets in Virginia for potential hosts and investors. With Forecast, you can go beyond the surface and access detailed insights on Virginia markets and beyond. From revenue projections to competitive set analytics, Forecast empowers you to optimize your Airbnb portfolio.
Want to uncover top STR markets for your next investment? Find your next opportunity with Forecast to turn data into smarter decisions.
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1. Rileyville: Best for ROI
Don't ignore Rileyville: this small town packs a very big punch when it comes to short-term rental returns. Tucked into the scenic Shenandoah Valley, this unincorporated community is overflowing with natural beauty, outdoor activities, and a laid back vibe that travelers love, judging by its 63% occupancy rate.
With a gross revenue of $59,397, a daily rate of $264, and an average Airbnb property price of $263,000, it's one of the most affordable markets that we've reviewed. This low entry cost, combined with strong revenue potential, makes Rileyville a top choice for investors looking for a high ROI without overspending on property acquisition.
Adding to its appeal, Rileyville has no specific short-term rental regulations, leaving investors to comply with straightforward Virginia state laws, such as obtaining a business license and paying the 10% Transient Occupancy Tax (TOT). Compared to more heavily regulated markets, this legal flexibility gives hosts more breathing room to focus on maximizing their investments.
2. Roanoke: Best for steady income
Look to Roanoke if you're seeking reliable, steady income. This city, located in the foothills of the Blue Ridge Mountains, attracts a year-round mix of visitors.
While the gross revenue of $28,629 might not seem too high, Roanoke's affordability more than makes up for it. This city has an average listing price of just $201,000; add in the 67% occupancy rate, and it's clear that Roanoke offers a dependable flow of bookings at an affordable price point.
With only around 100 short-term rentals, the market is far from oversaturated, giving potential hosts a lot of room to thrive. So, while the city may not be flashy, it's consistent. For investors who value predictable income over dramatic seasonal swings, Roanoke is a market to keep an eye on.
3. Alexandria: Best high-end investment
Alexandria is the kind of city that attracts guests who appreciate the finer things. Just a short drive from D.C., this historic city appeals to high-end travelers throughout the year, whether they're visiting for business or for leisure.
With a gross revenue of $57,449, a daily rate of $257, and a 75% occupancy rate, Alexandria offers steady demand and strong earnings. Yes, the average Airbnb price of $909,000 is on the higher side because this is the kind of market where guests are willing to pay.
Short-term rental regulations in Alexandria are fairly straightforward, too. Hosts must register their properties on Alexandria's Short-Term Residential Rental Registry, a quick and free process that allows multiple listings. Heads up that those earning over $10,000 annually or operating more than four separate units with cooking facilities, a Business, Professional, and Occupational License (BPOL) is required.
While Alexandria currently enjoys some of the most flexible Airbnb rules in Virginia, city officials are discussing potential new regulations. Proposed changes could include limits on occupancy, requirements for visible addresses, graded parking spaces, and annual rental permits.
4. Lynchburg: Best affordable investment
Another city located in the foothills of the Blue Ridge Mountains, Lynchburg proves that starting small doesn't mean compromising on opportunity. Its affordability and consistent demand make it an excellent choice for first-time investors or those looking to expand without breaking the bank.
With an average Airbnb price of $244,000, Lynchburg has one of the lowest entry costs among the state's short-term rental markets. While the average gross revenue of $26,041 and daily rate of $139 aren't the highest, the lower property prices make it easier for investors to see a solid return without overspending.
The city's 61% occupancy rate and around 300 active short-term rental units show a market with stable demand and a lot of room for growth. With manageable competition and affordable prices, Lynchburg gives hosts the chance to succeed without fighting for bookings in a bloated market.
5. Fredericksburg: Best growing market
Fredericksburg is a city on the rise, and it's definitely a short-term rental market worth watching. Sitting along the Rappahannock River, this historic city has Civil War landmarks, a lively downtown, and a central location between D.C. and Richmond. These all contribute to its relatively high occupancy rate of 64%.
The city has less than 100 active short-term rentals, but it's growing fast. This number is up 38% in the last two years alone. While gross revenue of $30,772 and a daily rate of $170 might not grab attention compared to other cities in Virginia, its average Airbnb price of $542,000 is much more affordable than Alexandria–despite being only an hour more away from D.C.--making it a smart choice for investors.
It's clearly a market with plenty of room to grow, and our data backs it up. As more travelers discover what Fredericksburg has to offer, its potential only gets stronger.
Is Airbnb profitable in Virginia?
Virginia offers a wide range of opportunities for Airbnb hosts, but–as always–the right market for you depends on your specific investment goals. The key is understanding the data that drives each market and choosing a location that aligns with what you're aiming for.
That's why savvy investors use Forecast in SummerOS. With detailed insights into revenue, occupancy, and market trends, Forecast empowers you to make informed decisions and find the best fit for your short-term rental business.
Don't take a chance on your next investment: explore Forecast and discover the numbers that will lead you toward a profitable move.
Unlock Virginia insights with Forecast in SummerOS
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