Is Arlington, VA a Good Real Estate Investment in 2025?

Short answer: Yes, for buy-and-hold rentals and mid-to-long-term value plays, Arlington remains attractive thanks to strong jobs, consistent rent demand, and owner-friendly STR and deposit rules, with taxes that you can underwrite up front. Updated: September 16, 2025 · Arlington, VA.

TLDR

• 2025 County tax rate advertised up to $1.043 per $100 assessed, with 2025 set near last year’s level in Board actions. Underwrite at about $1.03–$1.04 per $100.

• Security deposits in Virginia max at two months’ rent.

• Short-term rentals allowed as “Accessory Homestay” with a permit for your primary residence.

• Rents have been rising modestly in 2025, with vacancy swinging by corridor.

Where the numbers point

Arlington advertised an increase ceiling to $1.043 per $100 in early budget talks, but held the 2025 rate near the $1.033level used in 2024, so investors should model around 1.03–1.04% of assessed value.
Rents in 2025 show small month-to-month changes with annual growth still positive, while county dashboards show vacancy varies by submarket. Expect competition to rise around new deliveries.

Rules investors like

• Security deposits: cap at 2 months’ rent.

• Short-term rentals: legal as Accessory Homestay if it is your primary residence and you obtain the homestay permit and register taxes.

Strategy checklist

• Underwrite taxes at ~1.03–1.04% and check 2025 assessment trends.

• For STR exposure, confirm Accessory Homestay eligibility and HOA rules.

• Watch supply: new apartments have added options for renters, which can affect lease-up and concessions.

Key Takeaways

• Arlington’s regulatory setup is investor friendly for primary-residence STR and clear on deposits.

• Taxes are predictable enough to model.

• Rent demand remains healthy, though corridor-level vacancy varies.

FAQ

Are non-owner-occupied Airbnbs allowed?
Not as STRs. Accessory Homestay requires primary residency.

What rent growth should I model for 2025?
Keep it conservative, given deliveries and seasonality. Recent reports show modest changes with YTD growth still positive.

Any legal must-knows for first-time landlords?
Review the Virginia Residential Landlord and Tenant Act overview for recent updates.

📍 Thinking about buying or selling in Arlington? Work with the Best Realtors in Arlington VA
📞 Sign up for our next FREE Home Buying Workshop
🏡 Explore Neighborhoods in Arlington
📅 Check out upcoming Arlington Events
🔎 Start your Property Search
💬 Book your free Discovery Call

Fine print: This article is for informational purposes only and is not legal, financial, tax, medical, or professional advice. Information is provided in good faith from sources believed to be reliable, but accuracy and completeness are not guaranteed. Dates, times, prices, availability, and policies can change without notice. Verify details directly with the venue, organizer, County, or applicable authority before making decisions. Discover Arlington, The Davenport Group, and TTR Sotheby’s International Realty are not responsible for errors or omissions or for any loss arising from reliance on this content. Equal Housing Opportunity.

Real estate notice: Market data and examples are educational and not predictions of future performance. Short-term rental, zoning, licensing, and tax rules vary by jurisdiction and may change. Consult your attorney, CPA, and licensed real estate professional for guidance specific to your situation.