A Buyer’s Guide to New River Valley Short-Term Rentals

New River Valley short-term rentals attract buyers seeking steady demand without the volatility of resort markets. But many investors make costly mistakes. They don’t check zoning rules or overestimate income potential. Some buy the wrong type of property or buy in the wrong location.

Southwest Virginia short-term rentals average mid-50 percent annual occupancy. Peak demand happens during university events, healthcare travel, and outdoor tourism seasons.

This post explains how to evaluate New River Valley short-term rentals using local demand data, clear regulatory rules, and real financial numbers.

New River Valley Real Estate Market Watch

As of December 2025, the median sale price of homes in Floyd County was $421,250. However, NRV real estate trends are always changing. Contact The Louise Baker Team for help buying or selling a home in Virginia’s New River Valley.

Understanding the New River Valley Short-Term Rental Market

What Drives Demand in This Region?

The New River Valley runs on a different schedule than vacation destinations. Demand spreads throughout the year rather than clustering in the summer months.

Four main drivers create bookings here:

• Virginia Tech academic events, athletics, and graduation travel
• Radford University campus activity and visiting professionals
• Regional healthcare travel tied to Carilion facilities
• The New River and Appalachian trails offer outdoor recreation

Fall football weekends push occupancy rates above the annual average. Spring graduation weekends create similar spikes. Properties within 15 minutes of the Virginia Tech campus book more nights per year than rural listings.

How Different Towns Perform

Where you buy makes a huge difference in what you earn. Let’s explore a few of the key markets:

• Radford offers the best overall performance. Daily rates average around $266 with 49% occupancy throughout the year. Most properties generate about $26,600 in annual income. The university and hospital create a steady demand. You’ll also catch overflow bookings when Blacksburg sells out during big events.
• Blacksburg charges premium rates but books less often. You can get $443 per night on average, which sounds great. But occupancy only hits 40% for the year. Annual revenue typically lands around $20,700. Football weekends and graduation drive those high nightly rates. The trade-off is more empty nights between events.
• Christiansburg works for investors on a tighter budget. Daily rates run about $363 with 37% occupancy. Most properties earn around $15,000 per year. The Route 460 location brings families and business travelers. You’ll pay less to get in, but you’ll also earn less than in the other towns.
• Giles County suits recreational properties. Think river access, privacy, and outdoor amenities. Performance swings widely based on what your property offers. Without strong outdoor features, you’ll struggle to compete.

Legal Requirements You Must Follow

Virginia law allows short-term rentals but gives local governments control over rules. You must confirm the regulations before you buy any property.

Registration and Licensing

If you are considering a short-term rental in the New River Valley, registration and licensing should be your first concern. Each town and county sets its own rules. Assuming one location follows the same standards as another often leads to denied permits or restricted use after closing.

In Blacksburg, short-term rentals operate under the town’s homestay ordinance. Only owner-occupied primary residences qualify. You must live in the home most of the year and complete annual registration with the Planning and Building Department. Zoning approval is required, and enforcement is consistent across residential neighborhoods. Non-owner-occupied short-term rentals are not permitted.

Short-term rentals in Christiansburg are allowed under the homestay ordinance. You must obtain an annual permit and register with the finance department. The property must serve as your primary residence and meet safety standards. The city requires a zoning compliance review before any license is issued.

If you are buying outside town limits in Montgomery County, the rules change again. Short-term tourist rentals are permitted by right only in certain agricultural districts. Most residential zones require zoning review or a Special Use Permit. Some districts impose residency requirements and limits on rental days. Verifying zoning eligibility before making an offer protects your timeline and flexibility.

In Radford, short-term rental rules continue to evolve. Zoning compliance and registration are required, while ordinance updates remain under review. You should confirm current requirements directly with the Planning Department before relying on short-term rental income projections.

Giles County offers more flexibility but still requires zoning compliance. Short-term rentals are allowed in several districts, subject to registration and possible inspection. Safety standards apply, and zoning approval remains mandatory. Buyers should review private covenants or HOA rules separately.

Tax Collection Requirements

If you operate a short-term rental in the NRV, you must collect and remit both state and local lodging taxes. Virginia requires hosts to collect a 5.3 percent state sales tax on accommodations and remit it to the Virginia Department of Taxation. This tax applies to the full rental charge, including cleaning and service fees.

In addition to state sales tax, most towns impose a transient occupancy tax (TOT) of more than 5%.

• In Blacksburg, the local lodging tax is 7 percent. 
• Christiansburg applies a higher 9 percent transient occupancy tax. 
• Radford levies an 8.5 percent lodging tax on short-term rentals. 
• In unincorporated Montgomery County, the rate varies by location and typically ranges from 4 to 5 percent.

Platforms like Airbnb or Vrbo may collect and remit some taxes on your behalf. That does not eliminate your responsibility. You must confirm which taxes are collected, file required reports, and ensure all obligations are met.

Most state and local lodging taxes are filed monthly or quarterly, depending on the jurisdiction and the volume of filings. Late filings can trigger penalties and interest. Repeated noncompliance may also affect business licensing or short-term rental registration status.

Insurance and Liability

Standard homeowner’s insurance does not cover short-term rental activity. You need specialized coverage.

• What You Need: Short-term rental insurance or a commercial policy. Expect to pay $1,200 – $ 2,500 per year, depending on property value and coverage limits.
• Liability Coverage: Minimum $1 million liability coverage protects against guest injuries. Some lenders require $2 million for financing approval.

Finding the Right Property

Not all homes convert well into short-term rentals. High-performing property characteristics include:

• Two to four bedrooms with flexible sleeping layouts
• Off-street parking near campuses
• Proximity to Route 460 or downtown corridors

Townhomes and condos require HOA approval. Many associations restrict short-term rental use. Rural cabins perform best when they offer privacy and outdoor amenities.

Properties with steep maintenance costs reduce net income.

Property Types to Avoid

• HOA-Restricted Properties: Many associations tightened enforcement or banned rentals in 2024–2025.
• High-Maintenance Properties: Guests leave public reviews, and poor conditions hurt bookings quickly.
• Luxury Homes: You often cannot charge enough to justify the higher purchase price.
• Remote Locations: Homes more than 25 minutes from demand drivers struggle to maintain occupancy.

Real Financial Numbers for Buyers

Most buyers overestimate the potential income and underestimate costs. Here’s what to expect.

What Properties Cost

Blacksburg properties near campus cost the most. Christiansburg and Radford offer lower entry points. Giles County prices vary based on size and river access.

Prices run lower than resort markets in Virginia. But homes appreciate slowly at around 3–5% per year.

Income Reality

Gross revenue depends on your nightly rate and occupancy. Most properties achieve 50–60% occupancy in good locations. Event weekends boost your average rate, but most nights rent for less.

Your Ongoing Expenses

Expect operating costs to consume 35–45% of gross revenue.

Your main expenses include:

• Property management (20–25% if outsourced)
• Cleaning after every stay
• Utilities paid year-round
• Supplies and linens
• Maintenance at 1.5–2% of property value annually
• Higher insurance premiums
• Platform fees and property taxes

How Financing Usually Works

Financing a short-term rental is different from financing a primary home, and you’ll want to understand it early before you start shopping.

Most lenders require 20–25% down for short-term rental properties. If the home won’t be owner-occupied at all, some lenders push that requirement closer to 30%. Because of those restrictions, cash purchases are common in this market.

Lenders are also conservative when they evaluate rental income. Even if projections show $30,000 in annual revenue, many banks will only count 70–75% of that number when qualifying you. That means your personal income often matters more than buyers expect.

National lenders can be restrictive, but local banks and credit unions sometimes offer more flexibility. Some buyers improve their options by starting as owner-occupants and converting the property later. Others use a home equity loan on another property. Some might work with portfolio lenders that keep loans in-house rather than sell them.

Finding the Right Property

Not all homes convert well into short-term rentals. High-performing property characteristics include:

• Two to four bedrooms with flexible sleeping layouts
• Off-street parking near campuses
• Proximity to Route 460 or downtown corridors

Townhomes and condos require HOA approval. Many associations restrict short-term rental use. Rural cabins perform best when they offer privacy and outdoor amenities.

Properties with steep maintenance costs reduce net income.

Property Types to Avoid

• HOA-Restricted Properties: Many associations tightened enforcement or banned rentals in 2024–2025.
• High-Maintenance Properties: Guests leave public reviews, and poor conditions hurt bookings quickly.
• Luxury Homes: You often cannot charge enough to justify the higher purchase price.
• Remote Locations: Homes more than 25 minutes from demand drivers struggle to maintain occupancy.

Real Financial Numbers for Buyers

Most buyers overestimate the potential income and underestimate costs. Here’s what to expect.

What Properties Cost

Blacksburg properties near campus cost the most. Christiansburg and Radford offer lower entry points. Giles County prices vary based on size and river access.

Prices run lower than resort markets in Virginia. But homes appreciate slowly at around 3–5% per year.

Income Reality

Gross revenue depends on your nightly rate and occupancy. Most properties achieve 50–60% occupancy in good locations. Event weekends boost your average rate, but most nights rent for less.

Your Ongoing Expenses

Expect operating costs to consume 35–45% of gross revenue.

Your main expenses include:

• Property management (20–25% if outsourced)
• Cleaning after every stay
• Utilities paid year-round
• Supplies and linens
• Maintenance at 1.5–2% of property value annually
• Higher insurance premiums
• Platform fees and property taxes

How Financing Usually Works

Financing a short-term rental is different from financing a primary home, and you’ll want to understand it early before you start shopping.

Most lenders require 20–25% down for short-term rental properties. If the home won’t be owner-occupied at all, some lenders push that requirement closer to 30%. Because of those restrictions, cash purchases are common in this market.

Lenders are also conservative when they evaluate rental income. Even if projections show $30,000 in annual revenue, many banks will only count 70–75% of that number when qualifying you. That means your personal income often matters more than buyers expect.

National lenders can be restrictive, but local banks and credit unions sometimes offer more flexibility. Some buyers improve their options by starting as owner-occupants and converting the property later. Others use a home equity loan on another property. Some might work with portfolio lenders that keep loans in-house rather than sell them.

Risks Every Buyer Should Consider

No investment is risk-free. Understand what can go wrong before you buy.

Regulatory Changes

• Zoning Rules Changing: A zoning change could force you to sell or convert to long-term rental.
• HOA Enforcement: Associations that previously ignored short-term rentals now actively enforce restrictions. Always verify current rules and ask about pending changes.
• Tax Rates Increasing: Local governments can raise transient occupancy taxes.

Market Risks

• Revenue Volatility: If Virginia Tech changes its event schedule or Radford reduces enrollment, demand shifts quickly.
• Competition Increasing: More investors discover this market each year. Increased supply pushes rates down and occupancy down.
• Platform Policy Changes: Airbnb and Vrbo regularly update their algorithms, fees, and policies. A ranking drop can cut bookings by 20-30%.

Property-Specific Risks

• Guest Damage: Budget 2-3% of gross revenue for above-normal wear, tear, and occasional damage that exceeds security deposits.
• Maintenance: Short-term rentals experience 2-3 times the wear of owner-occupied homes. HVAC systems, appliances, and finishes need repairs and replacement sooner.
• Vacancy: Unlike long-term rentals with 12-month leases, every unbooked night is lost revenue you never recover.

FAQs About New River Valley Short-Term Rentals

How long until my first booking?

New listings with competitive pricing typically get their first booking within 2-4 weeks. Building a review history takes 3-6 months. Expect lighter bookings in your first year while you establish ratings.

Should I hire a property manager?

Self-management saves fees but requires constant availability. You’ll handle guest messages (often at night), coordinate cleaning, manage maintenance, and solve problems immediately. If you live more than 30 minutes away or have a full-time job, professional management is usually a good option.

What’s the minimum investment to start?

With 25% down, you need $50,000–$70,000 in cash in Christiansburg or Radford. Blacksburg requires $75,000–$120,000 for properties near campus. Add another $10,000–15,000 for initial furnishing and supplies.

What happens during slow months?

January through March and July see lower demand except during specific events. Plan for 3–4 months per year when occupancy drops below 35%. Keep 6 months of expenses in reserve to cover mortgage and costs during slow periods.

How do I compete with established listings?

Price 10–15% below comparable properties for your first 10 bookings. Respond to inquiries within 10 minutes. Provide excellent amenities (quality mattresses, good WiFi, well-equipped kitchen). Ask early guests for reviews. Once you have 8-10 positive reviews, you can raise rates to market level.

Your Next Steps with NRV Homes

Short-term rentals in the New River Valley work best when location, property type, and regulations align. Knowing which areas allow rentals, which homes perform well, and how the numbers hold up after expenses makes all the difference.

If you want help evaluating short-term rental opportunities, connect with NRV Homes. Contact us today!