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Colonial Beach, VA
Generally Investor Friendly
Local STR Agent
Local STR Agent

Yes, short-term rentals are explicitly allowed in Colonial Beach, Virginia. The town permits STRs in existing, legal residential dwelling units across all zoning classifications that permit residential dwellings, subject to specific regulations and permitting requirements. Colonial Beach has formalized its STR regulatory framework, requiring operators to obtain both a zoning permit and business license annually.
Colonial Beach hosts earn a median $29,230/year with $231 ADR and 50% occupancy.
Top performers pull in $40,949+ per year.
See the full Colonial Beach market breakdownAnnual Short-Term Rental Zoning Permit
Town Business License
Property Information:
Operator Information:
Property Layout:
Compliance Documentation:
Colonial Beach Zoning Administrator
Town of Colonial Beach Community Development Department
Colonial Beach Director of Finance
Board of Zoning Appeals
STR Application Form: https://colonialbeachva.gov/DocumentCenter/View/1676/STR-Application-3624-Fillable
Colonial Beach Finalizing STR Rules Article: https://www.newsontheneck.com/news/colonial-beach-finalizing-short-term-rental-rules/article_e3dfb902-7e44-11ee-a278-1b213981fadd.html
Virginia Statewide STR Overview: https://www.redawning.com/pm/post/virginia-short-term-rental-laws
Colonial Beach Market Information: https://www.gosummer.com/vacation-rental-management/colonial-beach-virginia
Important Investment Considerations: Colonial Beach's established STR market with approximately 130 existing businesses demonstrates strong demand, while the formal regulatory framework provides clear compliance pathways. The $50 annual permit fee is competitively priced, and the town's emphasis on neighborhood compatibility through parking and occupancy limits suggests sustainable long-term operations for compliant operators. Seasonal demand patterns favor summer peak performance, making this market particularly attractive for investors planning to capitalize on coastal tourism while maintaining regulatory compliance.
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Colonial Beach is a small waterfront town in Westmoreland County, Virginia, situated on a narrow peninsula where the Potomac River widens toward the Chesapeake Bay. With a population of roughly 3,500 residents, it carries the laid-back character of an old-fashioned American beach town, complete with a wooden boardwalk, a sandy riverfront, and a pace of life shaped by the tides. Once a busy resort destination in the early twentieth century, it retains a nostalgic, family-friendly atmosphere that draws weekenders and seasonal visitors from the broader Washington, D.C. region. Colonial Beach sits approximately 60 to 70 miles southeast of the capital, typically reached in about an hour and a half by car, making it one of the closest river beaches to the D.C. metro area.
One of the most significant historical draws in the area is the George Washington Birthplace National Monument, located along Popes Creek in Westmoreland County, just a short drive of about ten to fifteen minutes west of town. The site preserves the family plantation where the first U.S. president was born in 1732 and includes a memorial obelisk, walking trails through tidal marshland, and a visitor center that interprets colonial-era life. It is a popular stop for visitors interested in early American history and offers an easy half-day excursion from the beach.
A short drive southeast of Colonial Beach brings visitors to Westmoreland State Park, a Virginia state park spanning more than 1,300 acres along the Potomac River. The park offers hiking trails, a swimming beach, cabins, camping, and fossil-bearing cliffs along the riverbank. It is also a popular spot for kayaking, fishing, and viewing bald eagles, and it provides one of the most scenic stretches of Potomac shoreline in the region.
The town's own waterfront remains its centerpiece. The Colonial Beach boardwalk stretches along the river's edge, dotted with seasonal shops, casual seafood restaurants, and small galleries, while Monroe Bay, which borders the southern end of town, offers public boat ramps and quiet coves where visitors can paddle, fish, or watch the sunset over the Maryland shoreline. Together, the boardwalk and bay give the town a relaxed, walkable rhythm that visitors often describe as reminiscent of mid-Atlantic beach towns from a generation ago.
Colonial Beach offers short-term rental investors an appealing combination of a genuinely small-town setting, accessible waterfront, and proximity to two well-known heritage and outdoor destinations. The town's modest size, walkable downtown, and easy drive to the D.C. metro area give it a steady seasonal draw, while the George Washington Birthplace and Westmoreland State Park give guests clear reasons to extend their stay beyond the boardwalk.
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