Cape Charles, Virginia Short-Term Rental Market
Cape Charles STRs averaged $248/night at 42.3% occupancy in April 2026 across roughly 2,260 active listings.
Quick Answer: Cape Charles, Virginia is an active short-term rental market. average occupancy is 42%. average monthly revenue is $2,561. average daily rate is $248. the top operator is Seaside vacation rentals with 210 listings. market score is 65/100 (grade C).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Cape Charles, Virginia is a small coastal market on the Eastern Shore of the Chesapeake Bay with approximately 2,260 active short-term rental listings. In April 2026, the average daily rate was $248 and average occupancy sat at 42.3%, producing a RevPAR of $105. The market is more VRBO-oriented than most: of 2,258 tracked listings, 1,250 (55%) appear on both Airbnb and VRBO, 747 (33%) are Airbnb-only, and 261 (12%) are VRBO-only. By listing type, entire-place rentals dominate at 2,130 units (94%), with private rooms at 127 and shared rooms essentially absent. The bedroom mix skews toward larger properties: three-bedroom units lead at 812 listings, followed by two-bedrooms at 495, one-bedrooms at 397, four-bedrooms at 352, and five-plus-bedrooms at 198. Year-over-year, occupancy declined 6.3 percentage points while ADR rose 5.0%, resulting in a net revenue decline of 1.8%. The market’s investability score is 93 out of 100 and its revenue growth score is 82 out of 100, making it one of the stronger small coastal markets by investment metrics despite the soft April occupancy.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 30% | $192 | $1,709 |
| Feb | 38% | $186 | $1,619 |
| Mar | 44% | $198 | $1,964 |
| Apr | 47% | $214 | $2,363 |
| May | 52% | $246 | $2,877 |
| Jun | 65% | $283 | $4,485 |
| Jul | 73% | $271 | $5,170 |
| Aug | 69% | $271 | $5,014 |
| Sep | 48% | $248 | $3,150 |
| Oct | 37% | $229 | $2,448 |
| Nov | 33% | $213 | $1,949 |
| Dec | 33% | $207 | $1,954 |
Top Short-Term Rental Operators in Cape Charles
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Seaside vacation rentals | 210 | 6,216 | ★ 4.73 |
| 2 | Coastal Shore Vacations | 201 | 2,198 | ★ 4.60 |
| 3 | Island Getaways | 123 | 3,120 | ★ 4.80 |
| 4 | Harbour Rentals | 84 | 1,761 | ★ 4.52 |
| 5 | Evolve | 71 | 2,067 | ★ 4.77 |
What Kind of STR Should I Buy in Cape Charles?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 397 |
| 2 bed | 495 |
| 3 bed | 812 |
| 4 bed | 352 |
| 5 bed | 198 |
ADR by Property Tier
| Entire Home | $257 |
| Luxury | $419 |
| Professionally Managed | $281 |
Revenue by Dwelling Type
| Apartment | $2,057 |
| Entire Place | $2,615 |
| House | $2,716 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 33.1% |
| vrbo | 11.6% |
| both | 55.4% |
Investment Analysis
Cape Charles presents a compelling investment case by the numbers. At an April 2026 revenue average of $2,561 per month, properties in this market would generate approximately $30,732 annualized, a gross yield of roughly 7.7% against the typical home value of $399,727. The median list price of $645,833 skews higher due to the mix of premium bay-front inventory on the market, so entry cost varies significantly by property type. The investability score of 93 out of 100 reflects strong revenue-per-listing relative to home values compared to most US coastal markets. The tier differential is significant: luxury listings average $419/night versus $248 for all listings, and professionally managed listings average $281/night, a 13% premium. House rentals outperform apartments at $2,716 versus $2,057 per month, confirming that larger single-family properties with outdoor space are the core income driver. Revenue has grown from $2,087/month in 2017 to $3,460 in 2025, a 66% increase over 8 years, with the 2026 figure of approximately $2,062 reflecting the off-peak early-year months captured in the annual average so far.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
In April 2026, Cape Charles STR guests booked an average of 45.8 days in advance with an average length of stay of 3.88 nights. The 46-day lead time is high relative to most US vacation markets, reflecting the planning behavior of travelers coming from Northern Virginia, Maryland, and Pennsylvania who treat this as a dedicated vacation destination rather than a spontaneous getaway. For operators, this extended booking window means that dynamic pricing adjustments made 6-7 weeks out are still within the effective capture window for most bookings. The 3.88-night average stay is consistent with a leisure beach market where guests arrive mid-week and stay through the weekend. Operators setting minimum stays of 3 nights should see broad acceptance, while 5-night minimums in peak summer can help reduce turnover without significantly impacting total booking volume.
Short-Term Rental Regulations
Cape Charles adopted a Short-Term Rental Zoning Ordinance on November 21, 2024, converting non-owner-occupied STRs from a by-right use to a Conditional Use Permit process. Non-owner-occupied operators must obtain a CUP from the Town Council through a public hearing with neighbor notification. Properties hosting 10 or more guests require a separate additional CUP. Operators already holding valid licenses with demonstrated tax compliance were grandfathered. Under Virginia Code 15.2-983 (amended, effective January 1, 2024), owner-occupied primary residences cannot be required to obtain a CUP, and because Cape Charles adopted its ordinance after that date, the state law preempts the CUP requirement for owner-occupant operators. All STR operators must register with the Commissioner of the Revenue under Virginia Code 58.1-3819. Northampton County levies a transient occupancy tax of 2% for properties within Cape Charles town limits (the countywide rate is 5% outside town). An additional town-level transient occupancy tax may apply; the current town rate was not confirmed in publicly accessible official sources and is omitted here. Taxes are remitted quarterly. Electronic TOT filing launched April 1, 2026. CUP denials trigger a one-year suspension before reapplication. Enforcement severity is rated moderate. Northampton County is also advancing a separate STR ordinance with a proposed effective date of July 1, 2026.
Market Comparison
Against national STR benchmarks, Cape Charles shows below-average occupancy but well-above-average ADR. The US STR median occupancy is approximately 55%; Cape Charles averaged 42.3% in April 2026, which is the off-peak shoulder month for this market. In peak July, occupancy reaches 72.8%, well above the national median. The market ADR of $248 in April exceeds the US median of approximately $220, reflecting the premium coastal positioning and the dominance of entire-place vacation rentals. Among operators, Seaside Vacation Rentals leads with 210 listings, followed by Coastal Shore Vacations with 201 and Island Getaways with 123. The top 5 operators collectively manage 689 listings, approximately 31% of total market inventory, indicating a relatively consolidated management landscape for a market of this size. The market’s total score of 65 and investability score of 93 place it above average nationally for investment fundamentals.
Frequently Asked Questions About Cape Charles, Virginia
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