Last updated on August 8th, 2023
The Best Area for Airbnb in Washington DC: Get an insider tip on the best areas for Airbnb in Washington DC and neighboring cities. Read the listicle to find out!
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The Best Area for Airbnb In Washington DC: 2023 Airbnb Investment Guide
The Best Area for Airbnb In Washington DC: 2023 Airbnb Investment Guide
Get an insider tip on the best areas for Airbnb in Washington DC and neighboring cities. Read the listicle to find out!
- Last updated on
- August 8, 2023
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 area 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.
The Best Areas for Airbnb In Washington DC and Nearby Cities
The location is the main advantage for investors that buy houses in Washington DC since it is in the middle of other lucrative Airbnb markets. Using Airbtics, you can check the profitability of these locations. The following areas can also be your guide on your next short-term rental venture:
|
|||||
|---|---|---|---|---|---|
| Location | Number of Airbnb Listings | Best Number of Bedrooms | Median Property Price | Airbnb Annual Revenue | GRY |
| Capitol Riverfront, Washington DC | 53 | Studio unit | $325,000 | $30,401 | 9.35% |
| Capitol Hill, Washington DC | 151 | Studio unit | $589,950 | $53,833 | 9.13% |
| Georgetown, Washington DC | 94 | Studio unit | $85,113 | $39,528 | 46.44% |
| Southwest Waterfront, Washington DC | 50 | Studio unit | $192,450 | $28,548 | 14.83% |
| Dupont Circle, Washington DC | 114 | Studio unit | $270,000 | $29,697 | 11% |
| Alexandria, VA | 214 | 2 Bedrooms | $485,000 | $45,652 | 9.41% |
| Baltimore, MD | 718 | 3 Bedrooms | $199,000 | $27,724 | 13.93% |
| Richmond, VA | 313 | 1 Bedroom | $260,000 | $24,881 | 9.57% |
| Charlottesville, VA | 151 | 3 Bedrooms | $586,000 | $87,730 | 14.97% |
Best Area
Airbnb Dataset
Capitol Riverfront, Washington DC
- Total Number of Airbnb Listings: 53
- Most Profitable Number of Bedrooms: Studio unit
- Median Property Price: $325,000
- Airbnb Annual Revenue Potential: $30,401
- Gross Rental Yield: 9.35%
Capitol Hill,
Washington DC
- Total Number of Airbnb Listings: 151
- Most Profitable Number of Bedrooms: Studio unit
- Median Property Price: $589,950
- Airbnb Annual Revenue Potential: $53,833
- Gross Rental Yield: 9.13%
Georgetown, Washington DC
- Total Number of Airbnb Listings: 94
- Most Profitable Number of Bedrooms: Studio unit
- Median Property Price: $85,113
- Airbnb Annual Revenue Potential: $39,528
- Gross Rental Yield: 46.44%
Southwest Waterfront,
Washington DC
- Total Number of Airbnb Listings: 50
- Most Profitable Number of Bedrooms: Studio unit
- Median Property Price: $192,450
- Airbnb Annual Revenue Potential: $28,548
- Gross Rental Yield: 14.83%
Dupont Circle, Washington DC
- Total Number of Airbnb Listings: 114
- Most Profitable Number of Bedrooms: Studio unit
- Median Property Price: $270,000
- Airbnb Annual Revenue Potential: $29,697
- Gross Rental Yield: 11%
Alexandria, VA
- Total Number of Airbnb Listings: 214
- Most Profitable Number of Bedrooms: 2 Bedrooms
- Median Property Price: $485,000
- Airbnb Annual Revenue Potential: $45,652
- Gross Rental Yield: 9.41%
Baltimore, MD
- Total Number of Airbnb Listings: 718
- Most Profitable Number of Bedrooms: 3 Bedrooms
- Median Property Price: $199,000
- Airbnb Annual Revenue Potential: $27,724
- Gross Rental Yield: 13.93%
Richmond, VA
- Total Number of Airbnb Listings: 313
- Most Profitable Number of Bedrooms: 1 Bedroom
- Median Property Price: $260,000
- Airbnb Annual Revenue Potential: $24,881
- Gross Rental Yield: 9.57%
Charlottesville, VA
- Total Number of Airbnb Listings: 151
- Most Profitable Number of Bedrooms: 3 Bedrooms
- Median Property Price: $586,000
- Airbnb Annual Revenue Potential: $87,730
- Gross Rental Yield: 14.97%
Source: Airbtics Dashboard
Airbnb Regulations in Washington DC and Neighboring Cities
It’s crucial to follow the short-term rental regulations in your prospective market. Doing so will ensure that you will not have any legal problems down the line. So here are a few things you need to keep in mind:
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.
2. ALEXANDRIA, VIRGINIA
The short-term rental operator must be the property owner and reside on the property for at least 185 days per year. To operate the rental, they must obtain a biennial Short-Term Rental Permit, which costs $300 and covers administration and monitoring expenses. The permit is valid from January 1 of the year it is obtained until December 31 of the following year, regardless of the acquisition date.
3. BALTIMORE, MARYLAND
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).
4. RICHMOND, VIRGINIA
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).
5. CHARLOTTESVILLE, VIRGINIA
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).
How To Use Data Analytics in Finding Profitable Airbnb Markets?
Airbtics gives 2 options to help you find profitable short-term rental markets:
1. You can use the Discovery Tool to get a general overview of your prospective Airbnb market. Simply type in your chosen city, and you will instantly see the following:
- Market Name
- The Best Number of Bedrooms
- Market Size
- Market Type
- Gross Rental Yield
You can also see the neighboring cities of your chosen market. This will widen your horizon and inform you of other best Airbnb locations to invest in. If you’re lucky, you might end up entering a more profitable one than what you originally had in mind!
2. From the general overview using Discovery Tools, Airbtic also allows you to dive deep using Insights Tool. It’s the same drill. Enter your preferred city to check the following Airbnb metrics:
- Revenue Potential
- Occupancy Rate
- Nightly Rate
- Revenue Heatmap
The powerful Insights Tool allows you to create a Custom Market. This advanced yet easy-to-use tool allows you to have a more in-depth approach to accessing short-term rental data. Plus, there are no restrictions on geographical boundaries.
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 not only pinpoints the best neighborhoods for Airbnb in Washington DC and neighboring cities. With just a few clicks, it can also show the potential annual revenue and other short-term rental metrics.
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!
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Short-Term Rental Data
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