If you are hoping to buy a Fan or Church Hill house and run it as a full-time Airbnb, start with the city code: Richmond's short-term rental rules are built around hosts who live in the home, which shuts out most investor-owned whole-home rentals inside city limits.
In short: LendingStreet finances investor short-term rentals with DSCR loans that can qualify on projected short-term revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Inside the City of Richmond, the STR ordinance generally requires the home to be the operator's primary residence, so investor STRs there usually do not work. Richmond-area investors more often buy in places that allow non-owner-occupied STRs, such as Lake Anna, the Shenandoah Valley or the Northern Neck, after confirming the county's rules.
The City of Richmond adopted its short-term rental ordinance in 2020. It ties STR use to the operator's primary residence: a host can rent rooms, or the whole home while away, but the home has to be where the host lives. Operators register with the city, follow occupancy and safety rules and collect lodging taxes on each stay.
For an investor, that means a Fan rowhouse, a Museum District house or a Scott's Addition condo bought as a dedicated nightly rental generally does not qualify. Our loans are business-purpose loans on non-owner-occupied property, so a home that only works as a host-occupied STR is not a fit for STR financing. Rules can change, so confirm the current ordinance with the city's planning office before you plan around it.
The surrounding counties set their own rules. Henrico, Chesterfield and Hanover each regulate short-term rentals through zoning, and in many residential districts that means a special or conditional use permit, a public hearing or limits that make a dedicated investor STR hard to approve. Approval is case by case and can take months.
Before buying a suburban house for nightly use, call the county planning department, ask exactly which permit applies to that parcel and whether HOA covenants allow it. If the answer is uncertain, underwrite the home as a long-term rental instead.
Many Richmond investors drive an hour or two for STR deals. Lake Anna, split between Louisa, Spotsylvania and Orange counties, draws summer lake traffic from Richmond and Northern Virginia. The Shenandoah Valley and the Luray and Massanutten areas pull hikers and families visiting Shenandoah National Park. The Northern Neck and Middle Peninsula river towns draw boaters and weekenders.
Each county has its own registration, zoning and lodging tax rules, and some HOAs at the lake prohibit nightly rentals. Treat every county as its own check.
| Area | Distance from Richmond | Main draw | What to check |
|---|---|---|---|
| Lake Anna | About 1 hour | Summer boating and swimming | County permit, HOA rules, dock |
| Shenandoah Valley, Luray | About 2 hours | National park, caverns, fall foliage | County zoning and lodging tax |
| Northern Neck | About 1 to 1.5 hours | Rivers, Chesapeake Bay, wineries | County rules, flood zone |
| Williamsburg area | About 1 hour | Colonial Williamsburg, theme parks | City or county STR rules; often restrictive |
| City of Richmond | Local | Events, VCU, hospitals | Primary residence requirement |
Lake Anna is a summer market: Memorial Day to Labor Day carries most of the year, with shoulder weekends in spring and fall and a quiet winter. The Shenandoah Valley peaks in October for fall color and stays busier through the year thanks to the park, skiing at Massanutten and weddings. River towns lean on summer and fall weekends.
Ask for a projection that shows monthly revenue, not only an annual figure, and keep reserves sized for the slow months.
This example is illustrative and not a quote. A Richmond investor buys a Lake Anna home with a private dock for $685,000, in a part of the lake where the county permits short-term rentals and the HOA allows them. A third-party projection shows $74,400 a year, about $6,200 a month, most of it earned in summer.
At 75% LTV the loan is $513,750. Estimated principal and interest is about $3,505; with taxes of $330 and insurance of $260, the payment is about $4,095. DSCR on the gross projection is about 1.51x, and about 1.21x if the program applies a 20% reduction.
| Item | Amount |
|---|---|
| Purchase price | $685,000 |
| Loan at 75% LTV | $513,750 |
| Estimated principal and interest | $3,505 |
| Taxes and insurance | $590 |
| Total payment | $4,095 |
| Average monthly projection | $6,200 |
| DSCR, gross projection | 1.51x |
| DSCR, projection less 20% | 1.21x |
On some programs, the loan can qualify on a third-party revenue projection instead of a lease. Lenders look for comparable permitted rentals with similar size, water access and amenities. A low projection can sometimes be offset with a smaller loan or more cash, and an operating history helps on a refinance.
For lake and river homes, comparables should match on water frontage, dock access and bedroom count. A Lake Anna home on the warmer, private side of the lake can earn differently from one on the main public side, and a projection that mixes them can be off. For Shenandoah Valley cabins, views, hot tubs and distance to the park entrances move revenue.
Some programs also look at a long-term rent estimate as a floor. If both numbers clear the minimum, the file is stronger.
Virginia charges recordation taxes on the deed and on the deed of trust, plus a grantor's tax paid by the seller; your settlement agent will show the exact amounts. Real estate taxes are set locally by each city or county, and lodging taxes on short stays are collected at the state and local level. Some rural lake counties have lower tax rates than Richmond, but confirm each parcel's assessment.
Insurance on lake and river homes can include flood coverage when the property sits in a mapped flood zone, and docks and boat lifts may need their own coverage. Get quotes before you set your offer, since they flow straight into the payment.
Send the address, the county's STR rules as you understand them, any projection and the price. We will check the property type, run the ratio and show a long-term rental fallback if nightly use is uncertain. If you already own long-term rentals in Richmond, ask how a cash-out refinance on one of them could fund the down payment on a lake or mountain STR. Use the form below to get a quote.
Generally no. Richmond's ordinance ties STRs to the operator's primary residence, and our loans only finance non-owner-occupied property. Confirm current rules with the city.
Each county regulates STRs through zoning, and many residential districts require a special or conditional use permit. Ask the county planning office about your specific parcel.
Common choices are Lake Anna, the Shenandoah Valley and Luray area, and the Northern Neck, each after checking county and HOA rules.
On some programs, yes, using a third-party projection based on comparable permitted rentals.
Rentals of 30 days or more are generally treated as ordinary leases rather than STRs, but confirm with the city. They can be underwritten as long-term rentals.
Strongly. Summer earns most of the year's revenue, so plan reserves for winter.
Yes. A refinance can use operating history or a projection on some programs, and cash-out goes up to 75% LTV.
The minimum is 620, with no W-2s or tax returns required.
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