Short-Term Rentals in Fredericksburg, Virginia

The 'Homestay' category: by right, but with real limits

Fredericksburg created its short-term rental framework through Ordinance No. 17-19, adopted August 22, 2017, which amended Chapter 72 (the city's Unified Development Ordinance) to add a "Homestay" -- formally, Limited Residential Lodging -- as an accessory use permitted by right across every zoning district in the city. That by-right status matters: unlike a use that requires a special exception or conditional-use permit with a public hearing, a compliant Homestay doesn't need case-by-case City Council or Planning Commission approval.

The by-right status comes with specific, real limits rather than open-ended permission. A Homestay is capped at 2 guest bedrooms offered for short-term rental, with no more than 4 total guests present at any one time, and the use of the property for guest lodging is limited to 90 days per calendar year -- a meaningful ceiling if your plan is a full-time short-term rental business rather than occasional supplemental income. The rental activity must occur only within the principal dwelling unit itself: no renting out a detached accessory structure as its own short-term unit, and no public assembly events like weddings, receptions, or parties. The dwelling must also maintain just one kitchen -- a rule aimed at preventing a Homestay from functioning as a de facto separate dwelling unit.

The owner-occupancy requirement, and why the city imposed it

A Homestay must be operated in the owner's or tenant's primary residence -- the city does not extend by-right Homestay status to a property nobody actually lives in. What's worth knowing is why: Fredericksburg's City Council made an explicit legislative finding that requiring owner occupancy furthers the city's goals of promoting home ownership and aging in place, and specifically found the owner-occupancy requirement to be a legitimate purpose of zoning. That's a deliberate policy choice tied to housing-stability goals, not an incidental restriction, which is worth understanding if you're evaluating how durable this framework is likely to be over time.

That framing is also relevant given a 2024 change in Virginia law: effective July 1, 2024, for local ordinances enacted after December 31, 2023, a locality cannot require a special exception, special use, or conditional use permit for renting a dwelling that is the owner's primary residence. Fredericksburg's Homestay ordinance predates that cutoff and was already structured as a by-right use rather than a special-permit process, so it isn't directly displaced by the change -- but the state's growing preemption of local authority over primary-residence short-term rentals is useful context for anyone assuming the city could simply tighten this rule at will in the future.

The permit, and the separate rental tax

Operating a Homestay requires a Homestay Zoning Permit, a $30 application that requires an application form, proof of notice sent to adjacent property owners (documented via certified mail receipts), and a signed safety acknowledgment. That's a genuinely lightweight process compared with a special-use permit hearing, but it is a real, distinct filing requirement -- don't assume by-right status means no paperwork at all.

Separately, and in addition to the zoning permit, the city imposes its own Short-Term Rental Tax under Article XI of the city code: a 1% tax on the gross proceeds of every short-term rental business operating in the city. Anyone responsible for collecting and remitting that tax must file a Short-Term Rental Tax Registration form with the Commissioner of the Revenue's office before opening for business -- a separate registration from the Homestay Zoning Permit itself, and one that applies regardless of which specific short-term rental category a property falls under.

What this page could not confirm

This research pass focused on the well-documented, by-right Homestay category, which covers the common case of an owner renting out part of their own primary residence. It did not confirm the exact current permitting path for a non-owner-occupied, whole-property short-term rental in Fredericksburg -- whether that requires a special use permit, is prohibited outright in some or all districts, or is handled some other way. If your plan is a dedicated investment property rented short-term with nobody living there full-time, confirm the current rules for that specific scenario directly with the city's Planning and Community Development office before assuming the Homestay framework described here applies to you.