Covington, Virginia Short Term Rental Regulations Guide for Airbnb hosts

Overview: STR Status in Covington, VA

Yes, short-term rentals are explicitly allowed in Covington, Virginia and Alleghany County. The local government has actively developed specific zoning regulations for short-term rentals (STRs), with a proposed framework allowing these rentals with certain restrictions and requirements. Covington operates in a low-regulation environment for STRs, presenting opportunities for investors while requiring compliance with established zoning and registration procedures.

What do Airbnb hosts actually earn in Covington?

Covington hosts earn a median $21,349/year with $197 ADR and 44% occupancy.

Top performers pull in $39,065+ per year.

See the full Covington market breakdown

How to Start a Short-Term Rental Business in Covington, VA

Step-by-Step Process

Property Acquisition & Zoning Verification
- Purchase or identify a suitable property in an appropriate zoning district
- Confirm STRs are permitted in your specific zone:
  - AR (Agricultural Residential): Allowed by right
  - R-2 (Residential): Requires special use permit
  - R-1 (Residential): Not permitted
Application Process
- Complete and submit a short-term rental application to the Alleghany County Zoning Office
- Application must be approved before operation begins
Registration Requirements
- Register with the Commissioner of the Revenue
- Complete all standard business registration requirements
Compliance Verification
- Ensure all property codes are met (building permits, septic systems, etc.)
- Maintain compliance with residential structure standards

Market Entry Strategy

Based on current market analysis:

31 active listings currently in Covington (as of November 2024-October 2025)
Average Daily Rate (ADR): $254
Occupancy Rate: 36.8%
Median Annual Revenue: $31,441
Growth Rate: 82.6% year-over-year

The market shows strong revenue potential with favorable conditions for new entrants, particularly in the summer months when occupancy and rates peak.

Required Documents, Permits, Licenses, and Guidelines

Mandatory Documentation

Short-Term Rental Application (Alleghany County Zoning Office)
- Required for any STR operation
- Must be submitted and approved before operation
- Available through County Planning Department
Business Registration (Commissioner of the Revenue)
- Required registration with local tax authority
- Ensures compliance with local tax obligations
Property Compliance Documents
- Building permits (if modifications required)
- Septic system documentation (for non-sewer properties)
- Property insurance (recommended but not specified in regulations)
Zoning Compliance
- Verification of permitted use in zoning district
- Special use permit (if required for R-2 zoning)

Operational Guidelines

Structure Compliance: STRs must comply with all codes applicable to residential structures
Use Classification: Treated as commercial use subject to zone district regulations
Definition: Short-term rentals defined as stays of less than 30 days

Specific Regulations: City, County, and State Level

Alleghany County Zoning Regulations (County Level)

Zoning District Permitted Uses:

AR (Agricultural Residential): STRs allowed by right
R-2 (Residential): STRs permitted with special use permit
R-1 (Residential): STRs not permitted

Regulatory Framework:

Short-term rentals classified as commercial use
Subject to all applicable zone district regulations
Must comply with residential building codes
Separate application required for each STR property

Definitions Established:

Short-term rental: Properties rented for less than 30 days
Bed and breakfast homestays and inns
Cabin/cottage and cabin resort uses
Seasonal and temporary use structures

Virginia State Regulations

Virginia Residential Landlord and Tenant Act (VRLTA)

Applies to rental agreements for dwelling units
Establishes rights and obligations of landlords and tenants
Supersedes all local, county, and municipal landlord-tenant ordinances
Covers most residential rental agreements with specific exemptions

Key State Requirements:

Application fees limited to $50 (exclusive of third-party costs)
Specific notice requirements for lease terminations
Security deposit regulations
Mold remediation standards

Exemptions from VRLTA:

Single-family rental houses where landlord owns two or fewer
Occupancy in hotels/motels for fewer than 90 consecutive days
Business/commercial purpose rentals

Municipal (Covington City) Regulations

Current Status: No specific city-level STR ordinances identified in provided content. County regulations appear to apply to the entire jurisdiction.

Contact Information for Local STR Authorities

Primary Contacts

Alleghany County Planning & Zoning Department

Staff Contact: Elizabeth Stull, County Planner/Zoning Administrator
Phone: Contact through County Administration
Email: Contact through County offices
Address: Alleghany County Governmental Complex, Covington, Virginia

Commissioner of the Revenue

Registration Required for: All STR operations
Contact: Through County offices for specific contact information

County Administration

Interim County Administrator: Peter M. Huber
Address: Alleghany County Governmental Complex, Covington, Virginia

Support Resources

Legal Aid Services

Blue Ridge Legal Services
Phone: 800-237-0141
Serves: Alleghany County
Website: www.brls.org

Important Notes for STR Investors

Market Characteristics

Seasonal Demand: Peak revenue in July, lowest in January
Guest Profile: 95% domestic travelers, primarily from Richmond area
Property Types: 87.1% are entire home/apartment listings
Minimum Stays: 51.6% of listings offer 1-night minimum

Investment Considerations

Low Regulation Environment: Favorable for STR operations
Zoning Compliance Critical: Verify allowed use before purchase
Growth Market: 82.6% revenue growth indicates strong potential
Registration Essential: Both zoning approval and revenue registration required

Compliance Priorities

Verify zoning district permits STR use
Submit complete application to zoning office
Register with Commissioner of Revenue
Maintain residential code compliance
Monitor for any future regulatory changes

Sources and Links

Primary Source Documents:

Alleghany County Board of Supervisors Meeting Minutes (September 7, 2021): www.co.alleghany.va.us/attachment/2268
Virginia Residential Landlord and Tenant Act: www.vdh.virginia.gov/content/uploads/sites/12/2016/02/Landlord-Tenant-Handbook.pdf
Covington STR Market Analysis: www.airroi.com/report/world/united-states/virginia/covington

Note: This analysis is based on available documentation from September 2021. Investors should verify current regulations and contact local authorities directly for the most up-to-date requirements, as zoning regulations and municipal codes may have been updated since the provided documentation.

This guide provides comprehensive information based on available regulatory documents and market analysis. Professional consultation with local planning authorities and legal counsel is recommended before initiating any STR operation.

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Ask the AI Advisor about Covington

Covington is a small independent city tucked into the Alleghany Highlands of western Virginia, geographically surrounded by Alleghany County even though it is administered separately. With a population of roughly 5,400, the city has the quiet, blue-collar character of a former railroad town, anchored by the Jackson River and ringed by the forested ridges of the George Washington National Forest. Visitors and residents alike tend to think of Covington as a gateway to outdoor adventure in the central Appalachians, with easy access to state parks, reservoirs, and one of the oldest covered bridges in the country. It sits about 55 miles east of Roanoke along Interstate 64, placing the broader amenities of a mid-sized Virginia city within an hour's drive while keeping the small-town feel intact.

Just a few minutes southwest of downtown, the Humpback Bridge spans Miller Branch of Dunlap Creek and is widely cited as one of the oldest covered bridges still in use in the United States. Built in the 1850s, the 100-foot-long structure is a National Historic Landmark and a popular stop for photographers and history travelers driving through the Alleghany Valley. Its proximity to the city makes it an easy add-on for guests spending a day wandering Covington's older neighborhoods and riverside parks. More background on the bridge and its preservation history is available on its Humpback Bridge Wikipedia entry.

Roughly 20 minutes east of Covington lies Douthat State Park, one of Virginia's original state parks and a year-round draw for hikers, mountain bikers, and anglers. The park surrounds a 50-acre lake and includes more than 40 miles of trails, cabins, a campground, and a swimming beach, all set in a valley between Warm Springs and Mill mountains. It is the kind of place guests return to repeatedly during a multi-day stay, especially in autumn when the hardwood canopy turns color.

About 30 minutes north of the city, Lake Moomaw offers a different flavor of outdoor recreation. The 2,530-acre reservoir is popular for boating, trout fishing, and quiet lakeside picnics, and it sits within the George Washington National Forest, with trailheads and dispersed camping just beyond its shoreline. Covington also functions as a convenient overnight stop for travelers tracing the George Washington National Forest by car, since several of the forest's most scenic byways and trail systems branch out from the surrounding valley.

For short-term rental owners, Covington's appeal lies in the combination of low operating costs typical of a small Appalachian city and a steady, varied flow of visitors. Weekend travelers heading to Douthat State Park, road-trippers on the I-64 corridor, outdoor enthusiasts bound for Lake Moomaw, and history-minded guests stopping at Humpback Bridge all pass through the same compact downtown, giving the area a year-round rental market well beyond a single seasonal peak.