Colonial Beach, VA Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

55 / 100

Colonial Beach offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.

Colonial Beach Short-Term Rental Market Overview

Colonial Beach, VA is a small waterfront market on the Potomac River with 63 active Airbnb listings and an average annual revenue of $28,784 per property. With an ADR of $203 and a strongly seasonal demand curve that peaks in summer, this market caters primarily to leisure travelers seeking beach getaways. The ROI score of 55 out of 100 reflects an attractive opportunity where above-average market growth offsets a modest occupancy rate of 23%.

Key Market Statistics

According to Rabbu market data, the Colonial Beach short-term rental market shows:

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 63
Average Daily Rate (ADR) vs. $339 state avg. $203
Average Occupancy Rate vs. 34% state avg. 23%
RevPAN ADR * Occupancy Rate $46
Average Monthly Revenue Historical 12-month average $2,398
Average Annual Revenue Historical 12-month average $28,784

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Colonial Beach

Investors are drawn to Colonial Beach for its waterfront leisure appeal, relatively low property costs compared to nearby coastal markets, and a growth trajectory that signals rising traveler interest.

Key investment factors

  • Above-average market growth trend with 96% year-over-year listing expansion signals increasing investor and traveler interest
  • Average home values of $433,907 paired with $28,784 annual revenue offer a workable revenue-to-price ratio for a waterfront market
  • Summer peak months (July–August) drive monthly revenues above $4,300, providing strong seasonal cash flow
  • Small supply of just 63 listings creates a less crowded competitive landscape than larger Virginia beach destinations
  • Outdoor amenities like beach access, backyards, and BBQ grills align with the leisure-driven guest profile

Expert Market Assessment

"Colonial Beach presents a moderate-to-attractive opportunity for STR investors who can tolerate pronounced seasonality. The market's summer months carry the investment — August alone generates nearly four times the revenue of February — so underwriting should account for meaningful off-season dips. Three-bedroom properties stand out as the top revenue generators at $33,092 annually, and the small overall supply keeps direct competition manageable. The 55/100 ROI score reflects a market where revenue-to-price fundamentals are average but growth momentum is encouraging for early movers."

— Rabbu Market Analysis Team

Understanding Colonial Beach's ROI Score: 55/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

Factor Colonial Beach Performance Weight
Revenue-to-Price Ratio Average 40%
Occupancy Stability Average 30%
Market Growth Trend Above average 15%
Supply/Demand Balance Below average 15%

What This Means for Investors

Colonial Beach's ROI score of 55 out of 100 places it in the 'Attractive Opportunity' band, driven by average revenue-to-price and occupancy stability metrics paired with an above-average market growth trend. The below-average supply/demand balance — partly reflecting rapid listing growth (96% YoY) — is the main drag on the score and worth monitoring as new supply enters the market. Investors should pair these data points with up-to-date local regulatory research and a clear seasonal cash-flow plan before committing.

Short-Term Rental Regulations in Colonial Beach

Understanding local STR regulations is essential before investing in Colonial Beach. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Colonial Beach, Virginia may be required to obtain a local business license or STR permit before listing their property. Investors should verify current requirements directly with the Town of Colonial Beach and the Commonwealth of Virginia, as rules can evolve.

Key Restrictions

Common restrictions in Virginia's smaller resort towns can include occupancy limits per bedroom, minimum night stays during certain seasons, noise ordinances, and parking requirements. HOA covenants in specific neighborhoods may also restrict or prohibit short-term rentals, so reviewing deed restrictions before purchasing is advisable.

Tax Obligations

Virginia imposes a state sales tax and local transient occupancy tax on short-term rentals, and Colonial Beach may levy additional local lodging taxes. Major booking platforms typically collect and remit state-level taxes on behalf of hosts, but operators should confirm local obligations to ensure full compliance.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Colonial Beach can provide current regulatory guidance.

Short-Term Rental Financing for Colonial Beach

Financing an Airbnb investment in Colonial Beach requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Colonial Beach Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Colonial Beach should continue benefiting from its above-average market growth trend, with summer months likely sustaining ADR in the $200+ range and occupancy climbing during June through August. Listings nearly doubled year-over-year (96% growth), which could put some pressure on per-listing occupancy if demand doesn't keep pace — investors should watch for occupancy stabilizing around 22–25% on an annualized basis. Seasonal revenue swings will remain pronounced, so budgeting for winter softness (roughly $1,100–$1,300/month) alongside summer peaks near $4,500 is essential for realistic cash-flow planning."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Colonial Beach, VA

What is the average Airbnb occupancy rate in Colonial Beach?
The average occupancy rate for Airbnb listings in Colonial Beach is currently 23%, which falls below the Virginia state average of 34%. Occupancy varies significantly by property size — 1- and 2-bedroom units average 27%, while larger 3- and 4-bedroom homes hover around 17–18%. The lower annualized figure reflects the market's strong seasonality, with summer months driving the bulk of bookings.
How much do Airbnb hosts make in Colonial Beach?
Airbnb hosts in Colonial Beach earn an average of $2,398 per month and approximately $28,784 per year based on the trailing 12 months of booking data. Earnings vary by property size, with 3-bedroom listings leading at $33,092 annually and 2-bedroom properties at $22,585. Summer months significantly boost these figures, with August averaging $4,578 in monthly revenue.
Is Colonial Beach a good market for Airbnb investment?
Colonial Beach earns a Rabbu ROI Score of 55 out of 100, placing it in the 'Attractive Opportunity' category. The market benefits from above-average growth trends and a manageable supply of just 63 listings. However, occupancy sits below the state average and the market is heavily seasonal, so investors should plan for soft winter months. With average home values around $433,907 and annual revenue near $28,784, the revenue-to-price ratio is average — making careful property selection and pricing strategy important for strong returns.
What is the average daily rate (ADR) for Airbnb in Colonial Beach?
The average daily rate in Colonial Beach is $203, which is well below the Virginia state average of $339. ADR scales with property size: 1-bedroom units average $156, while 4-bedroom homes command $241 per night. This pricing reflects the market's positioning as an accessible waterfront destination rather than a luxury resort area.
Are short-term rentals legal in Colonial Beach?
Short-term rentals operate in Colonial Beach, VA, with 63 active Airbnb listings currently on the market. However, local permitting and licensing requirements may apply, and regulations can change. Investors should check with the Town of Colonial Beach and relevant Virginia state agencies for the latest rules before purchasing a property for STR use.
When is peak season for Airbnb in Colonial Beach?
Peak season in Colonial Beach runs from June through August, with July and August being the strongest months. August leads with average monthly revenue of $4,578, followed by July at $4,356. The off-season stretches from November through March, when monthly revenue drops to the $1,100–$1,726 range. This seasonality is typical of Potomac River waterfront and beach communities.
How many Airbnbs are there in Colonial Beach?
There are currently 63 active Airbnb listings in Colonial Beach as of April 2026. The market has seen significant growth, with a 96% year-over-year increase in active listings. Supply is concentrated in 2- and 3-bedroom properties (19 and 20 listings respectively), with smaller counts of 1-bedroom (10) and 4-bedroom (11) homes.
How is Airbnb revenue calculated in Colonial Beach?
The annual and monthly revenue figures for Colonial Beach are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the results to a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and how actively the listing is managed.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

  • Regularly updated active Airbnb and STR listing counts for Colonial Beach and surrounding areas
  • Average daily rate, occupancy, and RevPAN trends across property sizes
  • Monthly and annual revenue metrics based on trailing 12-month booking performance
  • Home value data sourced from the Zillow Home Value Index (ZHVI)
  • Amenity prevalence data across active listings to benchmark guest expectations

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing performance and market conditions as of the date shown; actual results may differ due to changing regulations, demand shifts, or property-specific factors. Local short-term rental regulations are subject to change; investors should verify current rules with municipal and state authorities before purchasing.

Next Steps

Ready to invest in Colonial Beach's short-term rental market? Take action with these resources:

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