Investing in Short-Term Rentals in Hampton Roads: Why Now is the Time to Expand Your Portfolio

Written By Sierra Alderman

If you're considering expanding your investment portfolio or entering the world of real estate, you may want to take a closer look at the Hampton Roads region. Comprising cities such as Virginia Beach, Norfolk, Chesapeake, and Portsmouth, this region offers a dynamic mix of coastal living, vibrant tourism, and a strong economic foundation. As the region continues to grow, short-term rental investments are becoming more attractive to real estate investors. Whether you're looking to purchase property or convert an existing one, Hampton Roads provides a rich and profitable environment for short-term rental ventures. Known for its vibrant coastal culture, thriving tourism industry, and consistently growing economy, this city is continually growing into one of the most attractive destinations for short-term rental investments. And whether you already own property or are thinking of purchasing a new one, Virginia Beach offers a diverse and profitable environment for short-term rental ventures. Keep reading to learn how key factors like real estate trends, tourism data, and societal shifts are making this a reality.

Hampton Roads’ Real Estate Market Has A Solid Foundation

Hampton Roads, with its coastal charm and rich cultural offerings, has long been a desirable location for homeowners and real estate investors alike. Cities like Virginia Beach, Norfolk, and Chesapeake offer diverse neighborhoods with varying price points, making this region accessible for investors. As of late 2024, the median home price in Hampton Roads was around $340,000, which is lower than the national median of $397,000 (Long & Foster, Bankrate). Compared to other popular coastal destinations in the U.S., Hampton Roads remains relatively affordable, and its real estate market has shown consistent growth. 

The region’s strong housing market, bolstered by military presence, tourism, and growing industry, creates a reliable foundation for both short-term rental properties and long-term investments. Whether you're buying a second home to rent out or converting an existing property, Hampton Roads offers a generally favorable return on investment.

Tourism is a Driving Force for Short-Term Rentals in Hampton Roads

The Hampton Roads region is home to some of Virginia's most visited destinations, including Virginia Beach, Norfolk, and Williamsburg, attracting millions of tourists each year. From outdoor activities and cultural events to historical landmarks and a thriving nightlife, Hampton Roads is a year-round hotspot for tourists. This has led to a significant rise in demand for short-term rentals (STRs).

Key Statistics:

  • Visitor Numbers: In 2023, Hampton Roads welcomed over 25 million visitors, generating over $2.5 billion in direct tourism spending (City of Virginia Beach, 2023). This reflects a strong demand for accommodations, particularly short-term rentals, which cater to tourists seeking a local experience.

  • High Occupancy Rates: While short-term rental occupancy rates in the Hampton Roads region of Virginia do vary by locality, AirDNA reports that home owners can see rates upwards of 60% – higher than the national average of 55%. This indicates high demand for short-term rentals in the region.

Tourism is a significant driver of rental demand in the region. Areas like Virginia Beach, Norfolk’s waterfront, and Williamsburg’s historic sites provide prime locations for short-term rental properties. Beachfront homes, properties near military bases, and homes close to cultural attractions can command premium rental rates, particularly during peak seasons.

Hampton Roads is a Year-Round Tourism Magnet

In addition to its natural beauty and recreational opportunities, Hampton Roads offers a vibrant cultural scene with a year-round calendar of events that attracts both tourists and locals. Investors can capitalize on these events by adjusting pricing and availability to maximize rental income during peak demand periods.

Notable Events Include:

  • Neptune Festival: This annual event, celebrating the beach and the city’s maritime heritage, draws over 500,000 visitors every year.

  • American Music Festival: Held annually on Labor Day weekend, this festival is one of the largest free music events on the East Coast and attracts tens of thousands of music fans.

  • Virginia Beach Farmers Market: Offering local produce and craft goods, the market is a popular weekend destination and serves as a draw for vacationers seeking a taste of the local culture.

  • Hampton Jazz Festival: A premier jazz event attracting global talent and an audience from all over the country.

These events not only boost tourism during their respective times of year but also provide an opportunity for short-term rental owners to capitalize on high-demand periods. Investors who understand the local event calendar can adjust pricing and availability to align with peak demand, maximizing their rental income.


Travel Trends are Favoring Short-Term Rentals

The global shift in travel preferences, accelerated by the COVID-19 pandemic, has influenced how people vacation. Remote work, more flexible schedules, and a preference for unique, experiential travel have all contributed to a rise in demand for short-term rentals.

People are increasingly seeking longer stays in locations like Hampton Roads, where they can combine work and leisure. As this trend continues, short-term rental properties are increasingly attractive, with many offering amenities such as office spaces, high-speed internet, and proximity to natural attractions.

Key Trends:

  • Remote Workers Driving Demand: Hampton Roads offers a blend of scenic views, outdoor activities, and modern amenities. Properties with work-friendly spaces and quick access to beaches or cultural sites are in high demand.

  • Experiential Travel: Travelers are moving away from traditional hotels in favor of vacation rentals that offer a local feel, privacy, and unique amenities. This is particularly true in Hampton Roads, where travelers seek authentic experiences, from enjoying local seafood to exploring the history of Norfolk or walking through Williamsburg’s colonial streets.


Key Considerations for Investors in Hampton Roads

While the Hampton Roads region offers strong potential  for short-term rental investors, it’s important to stay informed about local regulations. Various cities within Hampton Roads, including Virginia Beach and Norfolk, have implemented specific zoning laws and registration requirements for short-term rentals. These rules were designed to maintain the balance between residential neighborhoods and the growing number of short-term rentals.

Investors should ensure they understand the local zoning laws and obtain the proper permits before listing a property as a short-term rental – or, work with a short term rental property management company who knows this stuff inside and out, and who can help you navigate the process.


Conclusion: Why Now is the Time to Invest in Hampton Roads

Why is it the perfect time to invest in short-term rentals in Hampton Roads? The region’s diverse cities, strong tourism industry, and resilient real estate market make it an attractive destination for investors. Whether you’re a first-time investor or an experienced property owner, expanding your portfolio with a property in Hampton Roads could prove to be a lucrative decision that delivers returns for years to come.

Sierra Alderman
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