Overview: Are short‑term rentals allowed in Luray, VA? Short‑term rentals are allowed in the Town of Luray, Virginia, but only with proper local approvals. Investors should expect a case-by-case approval process through a Special Use Permit (SUP) for “lodging houses” (Luray’s term for most non‑hotel vacation rentals), plus a Town business license and tax compliance. As of early 2025, the Town reported approximately 41 short‑term rentals within its corporate limits (hotels, B&Bs, and lodging homes), and the Council has focused on refining evaluation criteria rather than imposing caps or blanket bans. The planning commission has begun public hearings on potential code amendments to Appendix A, Article V, Section 519 (lodging houses). Compliance is enforced, and recent Town reviews have identified unregistered STRs that were operating without business licenses or paying transient occupancy tax.

Important caveat: This guide reflects the best information available from the provided sources. Because Luray’s formal ordinance text and fee schedule for lodging houses are not included here, confirm final requirements, taxes, and inspection specifics with the Town of Luray before investing or launching operations.

How to start a short‑term rental business in Luray, VA

• Confirm jurisdiction: Verify the subject property lies inside Town of Luray limits (vs. unincorporated Page County). Requirements differ if you are outside Town limits.
• Select the property and confirm zoning feasibility with the Town of Luray Planning & Zoning. The SUP review considers neighborhood impacts and density of existing lodging houses.
• Pre‑application consultation: Call the Town to discuss your plans and SUP likelihood (see Contact Information below).
• Secure the required approvals:
  • Special Use Permit (SUP) for “lodging house” use through the Planning Commission and Town Council with a public hearing.
  • Business License from the Town of Luray.
  • Tax registrations: Virginia Sales Tax and Town Transient Occupancy Tax (TOT).
• Prepare for a life/safety review/inspection as part of SUP issuance (Town staff coordinate review and scheduling).
• Launch operations only after the SUP is approved, the business license is issued, and all tax registrations are active.
• Renew annually: Business licenses renew by March 1 each year; SUPs have renewal terms set by the Town; monthly TOT filings are mandatory even with $0 revenue.

Step‑by‑step process (Town of Luray—lodging house)

1. Contact Town Planning & Zoning to discuss feasibility and gather application materials.
2. Prepare the SUP application:
   • Include a narrative describing the operation (occupancy limits, parking, management plan).
   • Provide site and parking plans.
   • Document notification to adjacent neighbors where required by Town procedure.
3. Attend required public hearings:
   • Planning Commission public hearing (recommendation).
   • Town Council public hearing (final decision).
4. Upon SUP approval:
   • Apply for and obtain a Town business license.
   • Register for Virginia Sales Tax and Town TOT.
   • Complete any life/safety review/inspection the Town requires.
5. Operate per SUP conditions and Town code; renew annually per Town timelines.

Required documents, permits, licenses, and guidelines

• Special Use Permit (lodging house)
  • Application filed with Town Planning; reviewed by Planning Commission and Town Council.
  • Public hearing required; neighbor input considered.
  • SUP typically specifies occupancy limits, management, parking, and operational conditions.
• Town of Luray Business License
  • Required to legally operate within Town limits.
  • Annual renewal deadline: March 1.
  • Late penalties and interest apply after the March 1 deadline.
• Virginia Sales Tax Registration
  • Required for transient lodging.
  • File and remit per Virginia Department of Taxation schedules.
• Transient Occupancy Tax (TOT) Registration
  • Required with the Town of Luray for rentals under 30 days.
  • Collect 5% TOT from guests and remit monthly by the 20th; file even if there were no rentals.
• Tax documentation
  • Maintain gross receipts records, TOT remittances, and sales tax filings.
• Insurance (recommended)
  • Commercial general liability coverage appropriate for lodging operations.
  • Property/casualty coverage for STR exposure (insurers may require endorsement or separate policy).
• Safety and occupancy documentation
  • Post emergency contact information and management responsibility inside the property.
  • Maintain records for any required inspections (life/safety review).
• Administrative records
  • Keep copies of SUP approval, business license, tax registrations, guest logs, and correspondence.

Specific regulations for short‑term rentals in Luray, Page County, and Virginia Town of Luray (lodging houses/SUP)

• Definition and scope:
  • The Town uses “lodging house” for most STRs; SUP is required for lodging houses inside Town limits.
  • Recent Council discussions clarified evaluation criteria for SUPs rather than numeric caps or bans.
• Evaluation criteria considered by Town (non‑exhaustive):
  • Potential neighborhood impact (adjacent uses, setbacks, existing noise levels, nature/extent of renovations).
  • Presence, location, and number of other lodging houses on the same street/neighborhood.
  • Current, historical, and potential uses of the subject property.
  • Applicant’s ability to respond to and address issues in a timely manner.
  • Applicant’s history of compliance or noncompliance with land use restrictions and other legal obligations.
• Public process:
  • Planning Commission public hearing and recommendation.
  • Town Council public hearing and final decision.
• Zoning context:
  • The Town is reviewing amendments to Appendix A, Article V, Section 519 (lodging houses) to codify evaluation criteria.

Town of Luray taxes and licensing

• Transient Occupancy Tax (TOT): 5% of gross rental receipts for rentals under 30 days.
• Filing frequency: Monthly.
• Due date: 20th day of the month following collection; late penalties apply.
• Business License: Annual renewal by March 1; fee based on gross receipts; late penalties apply.

Page County (for properties outside Town limits)

• There are no Page‑County‑specific STR regulations in the provided content. Properties outside Town limits should confirm business licensing and any applicable county taxes/requirements with Page County offices (see Contact Information). If county requirements are unclear, default to state requirements and confirm directly with Page County.

Virginia state requirements (apply statewide)

• Maximum stay: 30 consecutive days (no meals prepared for guests). This limit is explicitly noted in county-level material supplied for the region and is a practical baseline; confirm local definitions with the Town.
• Sales tax: Virginia Sales Tax applies to transient lodging. The state rate for lodging is 5.3%; confirm current local add-on sales tax rates with the Virginia Department of Taxation.
• Building and life/safety standards:
  • Comply with the Virginia Uniform Statewide Building Code and related life/safety requirements (e.g., smoke detectors, fire extinguishers in kitchens, posted emergency information, and address visibility).
• Health and sanitation:
  • Approved sanitary facilities per Virginia Department of Health standards; portable bathrooms are prohibited.

Contact information (local authority in charge of STRs)

• Town of Luray — Planning & Zoning (for Special Use Permits and zoning questions)
  • Phone: (540) 743‑5511
  • Address: 45 East Main Street, Luray, VA 22835
  • Hours: Monday–Friday, 8:00 AM – 5:00 PM
• Town of Luray — Main Office
  • Phone: (540) 743‑5511
  • Website: townofluray.com
• Page County — Administration (for properties outside Town limits)
  • Website: pagecounty.virginia.gov
• Virginia Department of Taxation (Sales Tax registration and filing)
  • Phone: (804) 367‑8037
  • Website: tax.virginia.gov
• Virginia Department of Health (for well/septic and sanitation approvals when applicable)
  • Phone: See Town/County referral numbers or VDH region serving Page County

Links to source pages

• Town of Luray — Official Website: www.townofluray.com/
• Page County, Virginia — Official Website: www.pagecounty.virginia.gov/
• Shenandoah County STR Information (for regional context only; not Luray): www.shenandoahcountyva.gov/DocumentCenter/View/606
• Virginia Department of Taxation: tax.virginia.gov/
• Page Valley News: Council adopts lodging house resolution (STR evaluation criteria update in Luray): pagevalleynews.com/council-adopts-lodging-house-resolution/
• Page Valley News: Council continues discussion of short‑term rentals (status, compliance): pagevalleynews.com/council-continues-discussion-of-short-term-rentals-mimslyn-wants-to-open-bb-and-other-luray-news/

Operational checklist and best practices for investors

• Pre‑purchase due diligence:
  • Confirm zoning and SUP feasibility for the target property.
  • Review deed/HOA restrictions for rental prohibitions.
  • Assess parking, noise, and neighborhood fit.
• Application preparation:
  • Submit complete SUP materials; attend hearings prepared to address neighborhood concerns.
  • Provide clear management and response protocols.
• Post‑approval compliance:
  • Display business license and post required emergency information inside the property.
  • File TOT and sales tax monthly, even if no revenue.
  • Maintain guest logs and comply with occupancy and parking limits.
• Community relations:
  • Share contact information with adjacent neighbors.
  • Respond quickly to complaints; enforce quiet hours and house rules.
  • Maintain property appearance and manage trash and noise proactively.

Notes on regulatory evolution and investor risk

• The Town is refining SUP evaluation criteria for lodging houses; a formal code amendment to Appendix A, Article V, Section 519 is under review. Expect criteria to guide, but not guarantee, approvals.
• Operating without required approvals (SUP, business license) or failing to collect/remit TOT has resulted in enforcement actions elsewhere in the region and risks revocation or penalties in Luray.
• Because the complete fee schedule and ordinance language for lodging houses were not included in the provided materials, confirm costs and requirements with the Town before purchasing or investing.

Summary for investors Yes—short‑term rentals (lodging houses) are allowed in Luray with approvals. The path is predictable but not automatic: secure a Special Use Permit, obtain a Town business license, register for and remit TOT and sales tax, and comply with life/safety standards. The Town emphasizes neighborhood compatibility, management responsiveness, and the concentration of STRs when evaluating SUPs. With approximately 41 STRs in Town and ongoing code refinement, quality operators who are responsive neighbors and maintain full compliance should find viable opportunities in this Shenandoah Valley market. Confirm all details—especially taxes, inspections, and fees—directly with the Town before proceeding.