Top 5 Virginia Beach Neighborhoods for Rental Property Investments

Virginia Beach isn’t just a popular tourist destination—it’s also a promising market for real estate investors. With its coastal lifestyle, growing economy, and strong rental demand, this city continues to attract both local and out-of-state investors looking to grow their portfolios.

Whether you’re a new investor or adding to an existing portfolio, location is everything. Not all neighborhoods offer the same return on investment, tenant quality, or long-term potential. Choosing the right one can make all the difference.

In this blog, we’ll explore the top five neighborhoods in Virginia Beach to give you a clear look at what makes each area unique, who’s renting there, and what to expect in terms of value and rental performance.

Why Invest in Virginia Beach?

Before we explore the best neighborhoods in Virginia Beach, let’s look at why Virginia Beach is a smart place to invest.

A Strong and Growing Economy

Virginia Beach benefits from a diverse economy powered by military installations, tourism, healthcare, and technology. The area is home to several major military bases—including Naval Air Station Oceana—which means a steady stream of service members and government employees looking for quality rental housing.

Tourism also brings millions of visitors each year, fueling demand for short-term vacation rentals. The city also has a strong healthcare system and a growing tech industry, which helps keep the local economy stable.

Reliable Rental Demand

​Virginia Beach has a stable rental market with a low vacancy rate of approximately 4.5%, indicating strong and consistent demand for rental properties. This stability is supported by a diverse renter base, including military families, students, and local residents. 

Virginia Beach is also a popular tourist destination, which creates a demand for short-term rentals, especially in the Oceanfront and Boardwalk neighborhoods. 

Long-Term Property Appreciation

Virginia Beach is also a strong market for long-term property value growth. The average home value in Virginia Beach was $404,130 as of February 2025—a 4% increase over the past year. This steady appreciation makes it a smart choice for investors who want to build equity over time while earning rental income.

Quality of Life That Attracts Tenants

Virginia Beach isn’t just a place people visit—it’s a place people want to live. With excellent schools, safe communities, beautiful parks, and, of course, the beach, the city offers a high quality of life that appeals to families, retirees, and young professionals alike.

Now that we’ve covered the why, let’s explore the where.

Top 5 Neighborhoods for Rental Property Investments

Each of the following neighborhoods in Virginia Beach offers unique advantages depending on your real estate investment goals.

1. Oceanfront / Boardwalk Area

This is the heartbeat of Virginia Beach tourism. The Oceanfront and Boardwalk neighborhoods are ideal for short-term vacation rentals, and the rental income potential here is among the highest in the region.

Here’s what makes it stand out:

• High foot traffic and consistent demand during peak travel seasons.
• Proximity to restaurants, shopping, nightlife, and entertainment.
• Properties here can command premium nightly rates.

Short-term rentals in this area perform especially well during the spring and summer months. However, it’s important to factor in the seasonality. You’ll likely need a strategy to maintain occupancy in the off-season, along with strong property management to handle turnover and guest needs.

Investors who succeed here often work with experienced vacation rental managers to maximize bookings and streamline operations.

2. Town Center

If you’re looking for a modern, urban environment, Town Center is a smart investment location. This neighborhood features a mix of high-rise condos, apartments, and townhomes that appeal to young professionals and small families.

This is why it’s a great investment:

• Walkable access to restaurants, cafes, and entertainment venues.
• Proximity to corporate offices and major employers.
• Newer properties require less initial renovation.

Renters in this area often seek convenience, modern finishes, and access to public transportation.

You can typically charge higher monthly rents, especially for upgraded units. Investors should note that HOA fees may apply to some properties here, but the higher rental rates often offset those costs.

3. Great Neck

Great Neck is one of the most family-friendly neighborhoods in Virginia Beach. 

Known for its top-rated schools, quiet streets, and well-maintained homes, it’s a favorite among long-term renters—especially families looking for stability.

Here’s what makes it valuable:

• Excellent school district attracts long-term tenants.
• Larger single-family homes with high rental appeal.
• Higher property values, but reliable monthly cash flow.

While homes in Great Neck may cost more upfront, investors benefit from stable rent income, lower turnover, and tenants who tend to take good care of the property. If your strategy is focused on long-term leasing and tenant retention, this area is worth serious consideration.

4. Kempsville

Kempsville offers an attractive entry point for new investors. With more affordable home prices and strong rental demand, it strikes a balance between accessibility and profitability.

Here’s what investors like about Kempsville:

• Close proximity to military bases increases the tenant pool.
• Mix of single-family homes and townhouses.
• Steady appreciation and consistent rental demand.

This area is especially popular with military families and working professionals. Its central location makes commuting easy, and its growing retail and business development adds to its long-term appeal. For investors seeking strong fundamentals without the higher price tag, Kempsville is a solid choice.

5. Bayside

Bayside is an emerging neighborhood gaining attention from investors. With competitive home prices and a growing local economy, it’s one to watch for future growth.

What are the key reasons to invest here?

• Increasing job opportunities in nearby commercial hubs.
• Mix of older homes and newer developments.
• Appeal to renters looking for affordability and space.

This area offers a wide range of rental property types, from small single-family homes to multi-unit properties. It’s a great place to start building a portfolio, especially if you’re open to value-add opportunities like light renovations or upgrades.

Tips for New Landlords in Virginia Beach

Once you’ve chosen a neighborhood, it’s important to approach your investment with a plan. Whether you're local or out of state, following a few key steps can make a big difference in your success.

Do Your Research

Take time to understand the local rental market. Look at vacancy rates, average rent prices, and how long properties typically stay on the market. 

Make sure the neighborhood aligns with your investment goals—whether that’s short-term profit, long-term stability, or appreciation potential.

Look for Properties That Need Minimal Maintenance

Properties that are move-in-ready or recently updated typically require less upfront capital. They also attract better tenants and help avoid early maintenance headaches.

Even if you’re comfortable with renovations, consider starting with a property that needs only minor upgrades. This lets you get comfortable with property ownership without being overwhelmed.

Know the Landlord-Tenant Laws

Virginia has clear guidelines for landlords and tenants, but it’s essential to stay compliant. Familiarize yourself with security deposit rules, notice requirements, and maintenance obligations. These rules protect both you and your tenants.

If you’re unsure, working with a property manager who understands Virginia’s regulations can help you stay on track.

Build a Support Team

From contractors and cleaners to real estate agents and property managers, having a strong local network can make your experience much smoother.

Working with a local property management company like Osprey can give you an edge. We help investors like you manage tenants, maintenance, rent collection, and more—so you can focus on growing your investment instead of managing every detail.

How the Right Team Can Help You Succeed in the Virginia Beach Rental Market

Investing in rental properties in Virginia Beach is a smart move, but success comes down to choosing the right neighborhoods—and having the right team in place.

At Osprey Property Management, we specialize in helping investors identify the best opportunities, navigate the local market, and manage their properties with confidence. Whether you’re looking to buy your first rental or expand your portfolio, we offer the support, tools, and experience to help you succeed.

Our team knows Virginia Beach inside and out. From understanding tenant demographics to staying ahead of maintenance, we take care of the details so you don’t have to.

We encourage you to take a deeper diver into the neighborhoods we listed to find an area that aligns with your investment goals. However, if you need more help, download our free resource: How to Invest In Real Estate Guide.