Washington Dc

As of May 2026, Washington DC, Arlington, Alexandria have 7,961 active Airbnb and VRBO listings. This represents a 10% decrease from the previous year.

The average Airbnb or VRBO in Washington DC generates $42K per year. High-performing properties earn $92K/year, while low-performing properties earn $13K/year. The substantial revenue spread suggests that market rewards are highly concentrated, indicating that property-specific factors disproportionately influence financial outcomes despite a stable supply environment.

Average home prices in Washington DC vary by property size: 1-bedroom properties cost approximately $294K, 2-bedroom homes average $418K, 3-bedroom properties are around $665K, and 4+ bedroom homes average $883K. These prices reflect median home values across the Washington DC, Arlington, Alexandria area.

Airbnb and VRBO can be profitable in Washington DC, with an average gross yield of 6% across all properties. High-performing properties achieve yields up to 13%, which is considered top for short-term rental investment. This yield variance highlights that top-tier assets capture significantly more value, suggesting that market entry requires careful evaluation of asset-level earning potential.

The average occupancy rate for Airbnbs and VRBOs in Washington DC is 41%. This occupancy level, combined with an average nightly rate of $253, results in a RevPAR (revenue per available room) of $79 per day.

2-bedroom properties demonstrate the strongest performance in Washington DC, with an average gross yield of 10% and annual revenue of $45K. These properties balance purchase price ($418K), operating costs, and rental demand most effectively in the Washington DC market.

Short-term rental regulations vary by jurisdiction in the Washington DC area. Washington DC: Moderate. License required, basic safety standards, 2% sales tax. Owner-occupancy not required. Moderate enforcement with complaint-driven inspections. Arlington: Strict. Zoning approval required, owner-occupancy mandatory, max 2 guests, restrictive by-right zones. Active enforcement with neighbor complaints. Alexandria: Strict. Business license, owner-occupancy required, max 4 guests, residential zones restricted. Active enforcement, violations prosecuted. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Washington DC Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 10% year-over-year, while RevPAR has increased 2%. This indicates balanced supply-demand dynamics. The contraction in supply alongside rising per-unit revenue points to a tightening market where remaining operators may benefit from reduced direct competition.

Launch around January, 2-3 months before peak spring season (April peaks). This pre-peak timing lets you build reviews when competition is 44% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (December-January) when gaining traction is harder.

The most common amenities in Washington DC listings include: Air Conditioning (98%), Kitchen (94%), Tv (88%), Washing Machine (84%), Heating (77%). Amenities that boost revenue the most include Gym, Ev Charger, Washing Machine, with Gym properties earning approximately 26% more ($72K/year vs $57K/year).

Monthly estimated revenue per listing in Washington DC over the last 12 months: May: $3K, June: $3K, July: $2K, August: $2K, September: $2K, October: $3K, November: $2K, December: $2K, January: $1K, February: $1K, March: $3K, April: $4K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Washington DC is $253, up 19% year-over-year. By property size: 1-bedroom properties average $156/night, 2-bedroom properties average $258/night, 3-bedroom properties average $340/night, 4+ bedroom properties average $531/night. Rates peak in April and are lowest in February.

Guests in Washington DC book an average of 32 days in advance, down 16% from last year. By property size: 1-bedroom: 31 days, 2-bedroom: 31 days, 3-bedroom: 36 days, 4+ bedroom: 37 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Washington DC Airbnb and VRBO market has seen the following changes: supply declined 10%, revenue per listing increased 2%, occupancy fell 9%, average nightly rates increased 19%, and lead time decreased 16%. These shifts suggest a pivot toward higher-rate, shorter-stay bookings that compensate for lower overall utilization levels.

In Washington DC, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Monday. Weekends show 20% higher occupancy than weekdays.