Virginia Rental Portfolio Guide
What you need to know before building or growing a rental portfolio in Virginia — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.
Tax burden on Virginia rentals
Property tax
0.82%
effective rate on median home value
At 0.82% effective, the property tax burden sits in the lower half nationally (rank 21 of 51). Modest annual carrying cost keeps cash flow projections realistic on median-priced homes.
State income tax
5.75%
top marginal rate
A top marginal rate of 5.75% is moderate. Portfolio income above the federal deduction stack still faces this rate on top of federal, so tax-optimized holding structures (installment sales, 1031s, cost-segregation) matter more here than in no-tax states.
Security deposit rule
State law caps security deposits at 2 months' rent. Charging above the cap exposes the landlord to statutory damages in most states, so build lease templates that respect this ceiling from day one.
Deposit rules change; verify current statute before drafting a lease.
Best cash-flow markets in Virginia
Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using Virginia’s 0.82% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.
| Market | Median price | Median rent | Annual property tax | CF / month |
|---|---|---|---|---|
| Danville, VA | $166,873 | $1,193 | $1,368 | $-94 |
| Martinsville, VA | $135,588 | $877 | $1,112 | $-145 |
| Blacksburg, VA | $291,346 | $1,694 | $2,389 | $-456 |
| Roanoke, VA | $301,139 | $1,403 | $2,469 | $-732 |
| Lynchburg, VA | $291,459 | $1,316 | $2,390 | $-740 |
| Harrisonburg, VA | $352,185 | $1,785 | $2,888 | $-748 |
State median across the metros: $334,927 home, $1,694 rent, $-748/mo modeled cash flow.
Track your Virginia rental portfolio
The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each Virginia property carries the state-specific tax burden shown above through to the cash flow calculation.
Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.