Last updated on March 17th, 2023
best areas for Airbnb in washington dc
Key Takeaways
- Washington, DC is the seat of the US legislative, executive, and judicial branches. This makes it a viable location for a short-term rental investment which is certain to earn passive income readily available to Airbnb investors.
- Be in the know about the best real estate investment in DC area and neighboring cities from this listicle showing each place’s best bedroom size and corresponding gross rental yield.
- These top 10 profitable Airbnb communities are backed by short-term rental data analytics to help investors better discern their next real estate investment.
Introduction
Frank Underwood says in the first season of House of Cards, “Power is a lot like real estate. It’s all about location, location, location.” And where else is that location other than the center of global politics and home to all branches of the US Government, Washington DC!
If you are looking for the best areas for a rental property in Washington DC, then read on to narrow down your prospective market. However, rental arbitrage is also a good move for those budding investors who lack the capital in buying rental property in DC.
Why invest in an Airbnb in DC?
Investors have their own motivations for investing in the Airbnb market. But the following reasons are enough encouragement to pursue short-term rental operations in Washington, DC:
Promising Tourism Projections
While all cities saw a sharp decline in tourism at the onset of the COVID-19 Pandemic, DC is now recovering and enjoying an upward trend due to the containment of the virus. Therefore, now is the best time to invest in DC more than ever!
Central Location
Washington, DC is not only an important place even on its own. Its nearby cities like New York, Boston, and Philadelphia are just as valuable. In DC, you can enjoy being at the center while other major cities are within reach via land travel.
Top 10 Best Areas to Airbnb nearby Washington DC
Owning a Washington DC investment property is already a winning move for an investor since it is smack in the middle of other profitable Airbnb markets. Here are a few cities with their corresponding key data pulled out from Airbitics Discovery Tool. The following cities can also be your guide on your next short-term rental venture:
1. Washington DC
Hosts planning to have an investment property in Washington DC should first apply for a Short-Term or Vacation Rental License to kick off their Airbnb.
In a Short-Term rental, the host should also be on the same property, which has a spare bedroom for their Airbnb guests. Only the presence of the host differentiates a Short-Term Rental from Vacation Rental, as defined by the local government of the District of Columbia.
- Best bedroom size: 3 bedrooms
- Median property price (3 bedroom): $787,768
- Airbnb Annual revenue: $87,632
- Gross rental yield: 11.12%
2. Baltimore
The local government of Baltimore requires hosts to secure a license from the Housing Commissioner. It also requires the host to be a permanent resident of the investment property.
This means that they should also reside there for at least 180 days annually. Baltimore is 35 miles from Washington, DC (54 minutes drive).
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $192,977
- Airbnb Annual revenue: $ 52,518
- Gross rental yield: 27.21%
3. Richmond
A Short-Term Rental Permit is required to operate an Airbnb property in Richmond. Click here to apply. Richmond is 98 miles from Washington (1 hour and 44 minutes drive).
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $255,414
- Airbnb Annual revenue: $46,740
- Gross rental yield: 18.3%
4. Charlottesville
Hosts are required to obtain a Certificate of Registration from the Commissioner of Revenue before engaging in an Airbnb business. Charlottesville is 99 miles southwest of Washington DC (2 hours and 10 minutes drive).
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $295,388
- Airbnb Annual revenue: $61,998
- Gross rental yield: 20.99%
5. Ocean City
The Town of Ocean City requires hosts to already obtain a license before placing their property on Airbnb. The licenses issued by the local government are valid only for 1 year and can be renewed annually. Ocean City is 112 miles east of Washington DC (2 hours and 44 minutes).
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $770,559
- Airbnb Annual revenue: $80,314
- Gross rental yield: 10.42%
6. Chincoteague
Chincoteague is situated 112 miles east of Washington (3 hours and 8 minutes drive). While there are no specific short-term regulations in this city, it’s best to visit the local city hall for proper guidance.
he local city hall for proper guidance.
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $324,802
- Airbnb Annual revenue: $56,555
- Gross rental yield: 17.41%
7. Philadelphia
Philadelphia requires a registration of the Airbnb property and a short-term rental license for its operation. Aside from these, the hosts would have to prove that their investment property is their primary residence.
This means that the host needs to occupy the property at least 50% of the year. Philadelphia is located 123 miles northeast of Washington, DC (2 hours and 26 minutes drive).
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $295,378
- Airbnb Annual revenue: $68,910
- Gross rental yield: 23.33%
8. Atlantic City
If hosts plan to invest in an Airbnb business in Atlantic City, they would need to have a license in the form of a Seasonal Certificate of Occupancy beforehand. Atlantic City is 142 miles away from Washington, DC (3 hours and 7 minutes drive).
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $164,034
- Airbnb Annual revenue: $50,498
- Gross rental yield: 30.79%
9. Norfolk
The City of Norfolk requires all hosts to have a Registration Zoning Permit or Conditional Use Permit and a Business license for a smooth short-term rental operation. Norfolk is located 142 miles south of Washington, DC (3 hours and 5 minutes drive).
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $203,332
- Airbnb Annual revenue: $41,464
- Gross rental yield: 20.39%
10. Newport News
Newport News regulates its short-term rental industry. Download the application form here. Newport News is situated 150 miles south of Washington, DC (2 Hours and 43 minutes drive).
- Best bedroom size: 5 bedrooms
- Median property price (-bedrooms): $390,546
- Airbnb Annual revenue: $124,675
- Gross rental yield: 31.92%
Conclusion
Frank Underwood continues, “The closer you are to the source, the higher your property value.” That may be true in most cases, but the powerful Airbtics Discovery Tool shows that investors can earn $20,000 more in Newport News!
Airbtics Discovery Tool not only pinpoints the location of profitable markets around the DC area. With just a few clicks, it can also show the potential annual revenue and gross rental yield.
If you’d like to check the rental yield of your short-term rental property, feel free to try our Airbnb Calculator. This has helped a lot of investors make a more informed choice as they are guided by the right numbers!
Ramon Meris is a content writer for Airbtics. Guided by data analytics, he produces articles on various US short-term rental markets. Outside work, he is a reader, animal lover, and foreign language learner.
