.png)
Key Takeaways
The short-term rental (STR) market in Virginia Beach shows strong potential: average daily rates and annual revenues are attractive, but occupancy and seasonal variability remain major factors.
Regulatory requirements are substantial: zoning permits, inspections, liability insurance, and tax obligations must be met before operating.
Seasonality drives earnings: summer months deliver the bulk of income, while winter and shoulder seasons see significant dips in demand.
Operational costs, risk of non-compliance, and property maintenance must be factored in to assess true profitability.
For both landlords and tenants, understanding the market dynamics, regulatory landscape, and strategic positioning is essential to determine if STRs remain a worthwhile investment or rental choice in 2025.
As the tourism economy continues evolving, the question of whether short-term rentals (STRs) remain a worthwhile venture in Virginia Beach in 2025 is more pertinent than ever. For landlords looking to invest or optimise their property, and for tenants and long-term rental markets that may be affected, the stakes are high. The seaside city’s draw as a vacation destination remains strong, but the regulatory environment, market competition, and guest behaviour have shifted. In this article we’ll examine the market—from performance metrics and legal/regulatory requirements, to operational considerations and future outlook—to help both landlords and tenants decide whether STRs in Virginia Beach still make sense in 2025.
What's Your Rental Worth?
Book a Free Rental Analysis Now!
Market Performance & Demand Trends
Recent Revenue and Occupancy Data
In Virginia Beach, STRs continue to generate meaningful income, though the performance varies widely depending on location, property type and management. According to the city’s regulatory data and real-estate commentary:
Average daily rate (ADR) and annual revenue for STRs in Virginia Beach remain at levels where strong returns are possible. For example, an analysis for 2025 shows many listings achieving ADRs in the US$250-US$300+ range and annual revenue of tens of thousands of dollars.
However the median occupancy remains somewhat modest, often 40-60% depending on season and property.
These figures suggest that while the headline numbers can look strong especially for premium properties, occupancy and seasonal dips are major limiting factors.
Seasonality and Property Performance
Earnings are heavily driven by the season. In Virginia Beach:
Peak summer months deliver the bulk of bookings, especially for properties near the beach or main attractions.
Low or shoulder seasons (early spring, late fall, winter) show much weaker demand.
This implies that landlords relying on STRs must plan for variable cash flow, and factor in lean months into their business model.
Investment Context & Home Value Trends
Real-estate investment commentary for 2025 identifies Virginia Beach as an area of interest, noting that vacation rental opportunities (including STRs) remain attractive, but also that entry costs and competition may be increasing. As home values rise in the area, getting into the STR market or acquiring the right property may require higher upfront investment, which in turn impacts return on investment.
Implication for landlords
If you own or can acquire a property in a high-demand area (e.g., near the oceanfront, family-friendly beach neighborhoods) and you can secure good management and marketing, STRs could still yield strong returns. But you must not assume full-year high occupancy.
Implication for tenants
For those looking for longer-term rentals, increased STR activity may tighten supply in desirable areas; for those interested in flexible stays, there are more options but with higher variability in cost and availability.
Regulatory & Compliance Landscape in Virginia Beach
Local Permit & Zoning Requirements
In Virginia Beach, a short-term rental, defined as entire dwelling rented for less than 30 consecutive days, requires several regulatory steps:
A zoning permit is required for each address used for STR purposes. (City of Virginia Beach)
The zoning permit process includes a life-safety inspection report, structural safety inspection report, parking plan and insurance proof.
Off-street parking is required: minimum one parking space per bedroom.
A liability insurance policy of at least $1 million is required listing the address of the STR.
The property must register with the Commissioner of the Revenue’s office and remit monthly transient occupancy tax reports.
These requirements mean there is a non-trivial cost and time investment just to legally operate an STR.
Have a Question?
Ask a Property Manager!
Taxation & Fees
STR operators must comply with tax obligations:
Transient Occupancy Tax (TOT) is charged on all rentals of 90 days or less in Virginia Beach, which must be collected and remitted.
State sales tax also applies, and proper registration and reporting are required. (BNB Calc)
Non-compliance can result in fines, permit revocations or other enforcement actions.
For landlords this means tax and administrative costs must be factored in when projecting net returns.
Operational Restrictions & Special Districts
Beyond permits and taxes:
Only certain properties may qualify: e.g., “grandfathered” properties registered prior to July 1, 2018, or located in specific overlay districts such as the Sandbridge Special Service District.
Some properties may require Conditional Use Permits (CUPs) if they are in regulated zones (e.g., the Oceanfront Resort District). (Airbnb Analytics)
There are occupancy restrictions, parking rules, noise and contract restrictions. For instance: no more than three individuals per bedroom between 11 p.m. and 7 a.m. in some listings. (Hostaway)
As such, for some would-be STR operators these rules may reduce flexibility or limit property selection.
Enforcement and Future Legislative Trends
The city has a dedicated “Short-Term Rental Task Force” and continues reviewing changes to the regulatory framework. (edocs.vbgov.com) At the state level, while Virginia does not currently impose a blanket statewide STR permit, the legal foundation (Virginia Code § 15.2-983) allows localities to regulate STRs and there is proposed legislation for state-wide registry of STRs. (redawning.com)
The takeaway: regulatory risk is real. Landlords must stay current with rules; failure or changes could affect viability.
Profitability Considerations for Landlords
Estimating Revenue vs Expenses
Using market benchmarks: suppose you secure an ADR of around US$300, achieve occupancy around 40-60% (depending on property). For a 365-day year that might yield revenue of approx.:
US$300 × 0.40 × 365 ≈ US$43,800
US$300 × 0.60 × 365 ≈ US$65,700
After fees, taxes, management, maintenance, cleaning, repairs, furnishings, utilities and vacancy risk, the net profit may be much lower. According to STR analysis sources, some Virginia Beach listings generate annual revenue around US$50k+ for high performance, but a conservative model should assume lower occupancy and higher costs.
Location, Property Type & Guest Profile Matter
Properties near the beach, with three or more bedrooms perfect for groups, good amenities, may perform better. The market data show: in 2025 in Virginia Beach, more listings are three+ bedrooms compared to smaller ones, and these tend to have stronger performance metrics. Guests often expect good amenities (AC, fast internet, parking, kitchen) which require higher investment. Effective marketing and management also boost performance.
Risk Factors & Hidden Costs
Regulatory Risk
Non-compliance can mean fines, permit loss, forced closure.
Seasonality Risk
Big drop in demand outside peak season.
Market Competition
Too many listings or hotel alternatives may depress rates or occupancy.
Maintenance and Turnover
STR means frequent cleaning, higher wear and tear, more operational overhead.
Opportunity Cost
Choosing STR may mean forfeiting long-term stable rental income. Hence profitability is not automatic, it demands active management and risk mitigation.
Perspective for Tenants & Long-Term Rental Market
Impact on Long-Term Rental Supply
As STRs become more attractive, some property owners may convert from long-term leases to short-term use. This can reduce supply of affordable long-term rentals, particularly in desirable neighborhoods. Tenants looking for long-term leases may see increased competition or higher rents.
Tenants Considering Short-Term Rental as an Alternative
For tenants looking at STRs, perhaps as extended stays or temporary accommodation, Virginia Beach offers many listing options. But they should be aware that nightly rates fluctuate strongly, availability may be limited in off-season, and legality of the listing matters Reliability, cancellation risk, inspection of safety standards and assurance of compliance should be part of the decision.
Landlord-Tenant Decision Matrix
A landlord deciding between long-term lease vs STR should consider:
Long-term: stable monthly income, less turnover, less intense operational demands.
Short-term: higher income potential in peak months, but increased management intensity, higher risk and variable occupancy.
Tenants, in turn, benefit when the long-term rental market is healthy and supply is good, so the STR market indirectly affects them.
Is It Still Worth It in 2025?
For Landlords
Yes, but with conditions. If you have:
A property in a high-demand location (e.g., beachfront, near major attractions)
Good amenities and guest experience infrastructure
An appropriate budget that includes regulatory compliance, maintenance, marketing
then STRs in Virginia Beach can still deliver attractive returns in 2025.
However, if your property is marginal that is in a less-desirable area, smaller size, and has limited amenities, or you’re unable to manage the operational demands, then the risks may outweigh the benefits.
For Tenants
From a tenant perspective, understanding the STR market helps you in two ways:
If you’re looking for flexible accommodation or temporary stays, the STR market offers options. But you must align your budget and expectations, especially outside peak season.
If you seek a long-term rental, consider how STR conversions might impact supply and rent levels in your target neighborhood.
Strategic Takeaways
Location is critical: beachfront, near attractions, parking availability strongly drive performance.
Operational excellence matters: guest satisfaction, dynamic pricing, good management amplify returns.
Regulatory compliance cannot be ignored: costs, permits, inspections, taxes all must be built into your business model.
Seasonality is part of the business. Treat off-peak as normal, offer longer-stay discounts or niche marketing (remote workers, winter escapes) to smooth occupancy.
Exit strategy: consider how you will pivot if STR regulation tightens further or market over-saturates. Switching to long-term might then be the prudent path.
Looking Ahead: 2025 and Beyond
The STR landscape in Virginia Beach is at an inflection point. On one side, tourism remains strong and guests want quality experiences. On the other side, regulatory pressure may tighten, housing affordability concerns may impact policy, and competition from hotels and other STRs may increase.
Key signals to watch:
Any changes in zoning or permit rules via the city’s Task Force may raise barriers or cost of operation. (edocs.vbgov.com)
State-level legislation (such as a statewide registry of STRs) could add compliance burden or cost. (redawning.com)
Guest behavior trends: e.g., more remote workers staying longer, off-season travel shifts — if you adapt to niche markets you may gain advantage.
Supply vs demand dynamics: if many new STRs come online, you may see rates drop or occupancy soften.
Final Thoughts
Short-term renting in Virginia Beach in 2025 can still be worth it for the right property. Well-managed, compliant and strategically positioned. But it is no longer a “set it and forget it” model. Landlords must be proactive in managing operations, costs and regulations. Tenants need to understand how STR trends affect supply and access to long-term housing. In a market with both risk and reward, success comes down to how well the investment is executed and how prepared you are for the full breadth of responsibilities involved.
If you’re considering diving into STRs in Virginia Beach or evaluating what it means for your rental strategy or for your tenants, Abrams Realty can help you break down neighborhoods, compare long-term vs short-term scenarios and evaluate specific property cases.
