Overview: Are Short-Term Rentals Allowed in Blacksburg, VA?

Yes, short-term rentals are explicitly allowed in Blacksburg, Virginia. As of January 1, 2017, the Town of Blacksburg permits "homestay" operations—defined as short-term rentals of residential property—subject to specific regulatory standards adopted by Town Council. However, these regulations are highly restrictive and specifically designed for owner-occupied primary residences rather than investment properties.

How to Start a Short-Term Rental Business in Blacksburg

Step 1: Verify Eligibility

• Primary Residence Requirement: You must own and live in the property as your primary residence for at least 6 months of the year
• Owner Presence: The property owner must be the primary operator of the homestay
• Property Type: Single-family residential properties only

Step 2: Apply for Homestay License

1. Create OpenGov Account: Register at blacksburgva.portal.opengov.com
2. Submit Application: Use the Homestay License Application through the online portal
3. Annual Renewal: Licenses run January 1 through December 31 and must be renewed annually by December 1st

Step 3: Tax Registration and Compliance

1. Lodging Tax Registration: Complete the Lodging Tax Registration Form
2. Monthly Tax Filing: Submit monthly tax forms for transient lodging taxes
3. Business License: Register as a business with Montgomery County

Step 4: Safety and Compliance Setup

1. Safety Standards: Ensure property meets all safety requirements
2. 24/7 Availability: Designate yourself or a responsible party available by phone
3. Principal Guest Designation: Identify a principal guest contact for safety/behavioral issues

Required Documents, Permits, Licenses, and Guidelines

Town of Blacksburg Requirements:

1. Homestay License Application (online via OpenGov)
2. Lodging Tax Registration Form
3. Monthly Homestay Tax Forms
4. Principal Guest Contact Information
5. Proof of Primary Residency

Montgomery County Requirements:

1. Business License Registration
2. Special Use Permit (if property is not primary residence or for non-owner-occupied properties)
3. Compliance with County Zoning Regulations

Financial Requirements:

1. Lodging Tax Payment (monthly filing and payment)
2. Business License Taxes
3. Federal and State Tax Compliance

Specific Regulations for Short-Term Rentals

Town of Blacksburg Ordinances:

Type A vs. Type B Rentals:

• Type A: No more than 2 bedrooms rented, owner present on premises (up to 90 nights per year)
• Type B: More than 2 bedrooms rented OR owner not present (maximum 30 nights of the 90-night annual limit)

Key Restrictions:

• Annual Night Limit: Maximum 90 total rental nights per calendar year
• Type B Limit: Maximum 30 nights of Type B rentals
• Occupancy Limit: Maximum 6 people per rental period
• Owner Availability: Must be available by phone 24/7 to handle guest issues
• Primary Residence: Must occupy property as primary residence 6+ months per year

Safety and Operational Requirements:

• Emergency Preparedness: Clear evacuation plans required
• Fire Safety: Compliance with fire safety regulations
• 24/7 Contact: Owner or designated agent must be reachable
• Principal Guest: Designate a principal guest contact for town officials

Montgomery County Regulations:

Zoning Compliance:

• R1 Residential: Most STRs require Special Use Permit in residential zones
• Business License: Required for all commercial STR operations
• Comprehensive Plan: Must align with county comprehensive planning documents

Special Use Permit Requirements (for non-conforming uses):

• Application Process: Formal application to Planning Commission
• Public Hearing: Required for permit approval
• Compatibility Assessment: Must demonstrate compatibility with surrounding uses
• Management Plan: Detailed property management and guest conduct standards

State of Virginia Regulations:

Tax Requirements:

• Transient Lodging Tax: 5% state tax on lodging charges
• Local Taxes: Additional local lodging taxes may apply
• Federal Reporting: STR income must be reported on federal tax returns

State-Level Considerations:

• Insurance Requirements: Adequate property and liability insurance recommended
• Building Codes: All properties must meet Virginia building and safety codes
• Fair Housing: Compliance with state and federal fair housing laws

Contact Information for Local Authorities

Town of Blacksburg

• Planning Division: 540-443-1300
• Finance Department: 540-443-1050
• Planning and Building Department: 540-443-1300
• Website: www.blacksburg.gov/departments/departments-a-k/financial-services/homestay

Montgomery County

• Planning Department: 540-394-2148
• Email: mcplan@montgomerycountyva.gov
• Address: 755 Roanoke St. Suite 2A, Christiansburg, VA 24073

Additional Contacts:

• Town Clerk: For Town Code and Ordinance Information
• Fire Department: For safety inspection requirements
• Police Department: For security and emergency procedures

Source Pages

1. Blacksburg Homestay Information: www.blacksburg.gov/departments/departments-a-k/financial-services/homestay

2. Homestay License Application: blacksburgva.portal.opengov.com/categories/1076/record-types/6497

3. Blacksburg Municipal Code - Homestay Regulations: library.municode.com/va/blacksburg/codes/code_of_ordinances?nodeId=CO_CH6BURE_ARTVIHORE

4. Homestay Monthly Tax Form: www.blacksburg.gov/home/showpublisheddocument/6078/636651020614900000

5. Lodging Tax Registration Form: www.blacksburg.gov/home/showpublisheddocument/13805/638960279375870000

6. Transient Lodging Tax Information Sheet: www.blacksburg.gov/home/showpublisheddocument/6082/636650996708170000

7. Signed Ordinance 1807: www.blacksburg.gov/home/showpublisheddocument/6076/636650997023830000

8. Montgomery County Planning Department: montva.com/docs/default-source/planning-gis/requests-applications/2023/sup-2023-00685_application-packet.pdf

9. Virginia STR Regulations Overview: www.yorkcounty.gov/DocumentCenter/View/23393/STR-Regulations-in-Virginia-Localities

Investment Considerations

Advantages:

• Legal Operation: Clear regulatory framework since 2017
• High Demand: Blacksburg's status as a college town creates consistent demand
• Limited Competition: Restrictions limit number of legal STRs, potentially supporting higher rates
• Tourism Revenue: Close proximity to Virginia Tech drives event-based demand

Challenges:

• Limited Nights: Maximum 90 nights per year significantly limits revenue potential
• Primary Residence Requirement: Cannot operate as pure investment property
• Type B Restrictions: Additional limitations on unhosted rentals
• Regulatory Complexity: Requires coordination between multiple jurisdictions

Market Positioning:

Given the restrictions, successful STR operations in Blacksburg typically focus on:

• Event-Based Rentals: Football games, graduation, parent weekends
• High-End Accommodations: Premium pricing for limited availability
• Local Resident Revenue: Supplement primary residence expenses
• House Hacking Strategy: Use STR income to offset mortgage costs

Note: This guide is for informational purposes only and does not constitute legal advice. Always consult with local authorities and qualified professionals before starting a short-term rental operation.