During the summer of 2024, the City of Hampton passed new ordinances regarding the regulation of short-term rentals in Hampton, Virginia. There are new and updated rules that vacation homes must comply with, as well as new processes for starting a short-term rental.
Hampton has been working on defining and implementing short-term rental regulations that work well for the city for the past few years. These updates are the most recent and do offer some grandfathering privileges to those properties that have been operating as vacation rentals since before 2022.
Short-Term Rental Definitions in Hampton, VA
When operating a vacation rental business in Hampton, Virginia, it’s important to know what counts as a short-term rental vs. what counts as a homestay.
In Hampton, short-term rentals are typically considered dwellings rented out for lodging for 30 days or less. This might be a whole home or apartment, or even a portion of the home. Short-term rentals are often listed and advertised on apps like Airbnb and VRBO.
Homestays are rentals were a long-term property resident rents out a single bedroom in their home for 30 days or less, according to the City. The long-term resident offering the room must continue to stay on the property while the room is rented.
The new density and separation regulations, defined below, primarily apply to short-term rentals that are not homestays. Those interested in renting a homestay should contact CDDZoning@Hampton.gov for approval and more information.
Hampton, Virginia Short-Term Rental Districts
City Council approved a plan to divide the city of Hampton, Virginia into 51 separate zoned districts. Only up to 1% of properties in each zone are permitted to operate as short-term rentals at any given time.
This new density cap approach, according to the City’s website, “aims to maintain the character of our neighborhoods while accommodating the growing demand for short-term lodging.”
Owners of existing short-term rentals that are compliant may be able to continue operations even if it would exceed the zone’s cap, but they will still need to get approved through the application process by the end of 2024.
If you want to start a vacation rental in Hampton but your designated zone has reached 1% capacity, you can submit an interest form to get notified if a spot opens up.
At this time, homestays do not count toward the zones’ limits.
Currently, the Buckroe 1 zone has reached the density limitation and no further STRs can be approved. All other zones have STR capacity as of December 2024.
Physical Separation of Short-Term Rentals in Hampton
In addition to the density caps in each zone, all Hampton short-term rentals are required to be 300 feet* apart from each other. This distance will be measured between the respective property lines.
There are a few exceptions to the separation rule. Two side-by-side properties are permitted to both be short-term rentals – otherwise, the 300 feet rule applies. Additionally, multifamily units being used as short-term rentals aren’t subject to the restriction. And if your property is one of the grace-period short-term rentals, they aren’t subject to the buffer from other properties but will create a separation buffer once approved for their use permit.
*In original discussions of these new Hampton short-term rental regulations, it was proposed that each rental should be 500 feet apart. This was later amended to reduce the separation requirement to 300 feet.
Business License & Permit Requirements for Hampton STR Owners
The new Hampton short-term rental rules added to the permitting process for the city. Those who wish to operate a vacation rental in Hampton, VA must now acquire a city business license, an approved Use Permit, and pass a city inspection.
The application fee for the short-term rental use permit is $200. Additionally, there is a $50 fee for the City inspection of your rental business.
Under the new rules approved short-term rental permits will not pass over to the new owners when the property is sold.
Previously, those wanting to start a short-term rental business in Hampton had to go through two public hearings for approval. This permitting process will replace that requirement.
Responsible Party for Short-Term Rentals in Hampton, Virginia
As in neighboring Virginia Beach’s short-term rental laws, every vacation rental will need to have an assigned person who can respond quickly in-person to any issues that might arise on the property. Their name and contact information should be listed on the property itself, as well as on the City’s website.
Grandfathered Properties and Grace Periods
The newest Hampton short-term rental regulations went into effect on September 1, 2024. If a property is operating under a use permit that was approved before that, that rental is grandfathered in and may legally continue to operate under the conditions of that permit.
Those short-term rentals that got their business license before December 14, 2022 are considered grace-period properties. They need to update their operations to comply with the new regulations and receive their necessary permits by December 31, 2024. City Council has stated that they will then have approval to continue operating.
Any Hampton vacation rentals that don’t have the proper permits by the end of 2024 will be considered as operating illegally and must come into compliance or be penalized by the City.
Penalties for Illegally Operating a Short-Term Rental in Hampton
If a short-term rental owner fails to comply with the new and existing Hampton regulations, they face penalties implemented by City Council. They may receive a notice of violation as well as a criminal summons.
Fines will also be levied against illegal operations – a hefty $1000 fine that’s not only charged once, but that can be issued every 10 days after an abatement period if the rental isn’t brought into compliance.
When the new rental regulations went into effect, the City of Hampton employed 12 inspectors in charge of enforcing short-term rental laws and other code enforcement. They anticipate that all short-term rentals in Hampton operating illegally will have been notified or inspected by summer of 2025.
The Bottom Line
The new Hampton short-term rental regulations restrict how many properties can act as vacation rentals in the city. Current operators or those wishing to start a rental business in Hampton, VA must be aware of these new rules and how they affect their properties.
If you’re looking for an investment property in Hampton, need help navigating the new regulations, or are looking for assistance in self-managing your rental, get in touch with our top real estate team today.