Best Places to Invest in Real Estate in Virginia

Article by:

KCM Crew

If you're looking to invest in the housing and rentals market, one of the hottest places in the country is Virginia. It's well known for being the first English settlement in the country and for producing eight U.S. Presidents.

Sometimes called the "Mother of Presidents" and the "Mother of States," it’s home to the Appalachian Trail, oysters, Presidential homes, the Arlington National Cemetery, the Shenandoah National Park much more.

That said, it’s also become a popular place where people are investing their money in various properties from homes to rentals and the like.

When you're in the market to invest in any of these properties you'll want to check these cities in Virginia below to possibly add to your investment portfolio, and/or if you're moving to the great state. 

A combination of low inventory, high demand, and low-interest rates has boosted the Virginia real estate market through 2021. But could changes may be in store for the last six months of 2022?


Tidewater is a great place to invest in real estate if you’re good at repairing things around the house, townhouse, condo, apartment, etc.

Tidewater refers to the low-lying plains of southeast Virginia, including the Hampton Roads area. Great fixer-upper deals are available throughout. You could invest in repairs and improvements, and then have a good rental property to offer.

The Tidewater area is a good market for a single-family rental property: the region has a large amount of military personnel who take care of their properties and move often, thus likely to rent, rather than buy.

Also, you may be able to collect rent via payroll allotments since the military may be covering their living expenses. Besides the military, Tidewater is home to blue-collar workers that could become long-term tenants of your rental property.

Green Bay

Green Bay is a small unincorporated community in Prince Edward County and good investment experts suggest if you’re basing your decision solely on cash-on-cash return on investment.

With a median property price of less than $150,000, it's doablee to buy a property and rent it out for a strong rental income.

Green Bay might also be a good market for an investor looking to flip a property given the low cost of entry.

Chase City

Another great choice for a Virginia investment in property is in the small town of Chase City. It has a population of under 2,500, but the town is located within Mecklenburg County, which has a population of more than 30,000.

The Chase City median home value is less than $100,000, with average rents are $1,000, which means most of the properties for sale will meet the 1% rule in real estate.

Chase City home values have also risen by 14.8% in 2022 so you might make some money in appreciation, too.

Chase City's top industries include tobacco, lumber, glass vials, and food distribution, according to the town's website.

Another positive: the town's cost of living is 20% lower than the national average, so tenants might not have much difficulty paying rent.



Less than 10 miles from Washington, D.C., Alexandria provides a terrific opportunity for investors who may have tons of cash. The median home values are among the highest in the state at more than $600,000.

Alexandria ranks as one of the best places to live in the country and in 2022, Niche ranked Alexandria No. 11 for best city for young professionals and the No. 23 healthiest city in America.

Since federal jobs are here to stay and the market outprices most potential homeowners, it’s safe to say the area draws renters with strong incomes.

Although the property market has dipped slightly in comparison to 2021, the city of Alexandria is still considered to be a reliable investment location. Its location which is close to the nation’s capitol makes it a perfect rental area for commuters.

Alexandria’s job market is governmental arms, like the National Science Foundation and the Patent and Trademark Office. Only a 10-minute drive from the Pentagon, the city's largest employer is the U.S. Department of Defense.

Alexandria's closeness to D.C. means that there will always be a demand for rental property. Government contractors often set their headquarters here and government employees call the city home.

The city is also testing a new co-living initiative and if implemented, it could help the issue of rental affordability for tenants. It could also mean that property owners could fill vacancies faster and ensure cash flow stays constant. If you have the money to invest, Alexandria will provide consistent returns for years, according to the experts.


Overall, rental rates are increasing across Northern Virginia, and it isn’t likely to come to a halt anytime soon.

If you like consistent returns, but a slightly lower amount per month, sure, Alexandria is the city for you. If you prefer higher rent prices in a slower, more suburban setting, head to Leesburg.


Founded by descendants of Robert E. Lee, historical Leesburg is a growing real estate market in Northern Virginia.

A 45-minute drive time from Washington D.C., the Arlington suburb saw steady population growth in recent years. D.C. commuters are heading to the suburban town as rents increase in the nation’s capitol.

While mostly a commuter town, Leesburg has also seen employment growth within its borders. Its unemployment rate is also half of the national average.

As home values increase, there will be an increase in those opting to rent instead of owning a home here. Those looking for a convenient and spacious alternative to Washington D.C. will like this suburban bedroom community.


Rising to $290,000, Harrisonburg has seen a 45% increase in median sales price in the last year through May. Median listing prices have also risen to $306,000; marking a 42.3% year-over-year increase. Home to James Madison University, the town is situated between the Blue Ridge Mountains. This area is great for those who enjoy hiking and mountain biking and other outdoor activities, according to industry reports.


Strong demand for homes in Blacksburg shows listings on the market for an average of only five days, compared to 47 days in May 2021. Sale dollars per square foot were at $218 in May 2022, which shows an annual increase of 10.4% over 12 months. Another college town, Blacksburg is home to Virginia Tech and has a steady labor market. Jobs increased 5.2% in the Blacksburg/Christiansburg region between April 2021 and April 2022, according to industry reports.

Spotsylvania Courthouse

Spotsylvania Courthouse is an area that's also seen demand for home purchases grow. Despite a 21.2% decline in homes sold from May 2021 compared to May 2022, the median sale price went 32% to $475,000 in the same period, according to industry reports.

This region is perfect for history buffs and where a famous battle took the lives of more than 30,000 soldiers in 13 days in 1864.


Located on the Virginia Peninsula and bordered by the Chesapeake Bay to the east, is the town of Poquoson. Sellers have realized an average sale-to-list price of 101.6%, a 0.8% increase over May of the previous year. About 48% of listings sold above the asking price over the same period. Poquoson has a population of about 12,000 people and crime rates are below the national average in the town that also borders the larger city of Hampton, according to industry reports.


Annandale is one of the Northern Virginia communities that borders the Washington D.C. metro area. At $811,550, the median sales price here is one of the highest figures in the Commonwealth. A 4.4% decrease in homes sold in the past year could mean that fewer homes are available and affordable for buyers. Being close to the nation's capital gives buyers and sellers advantages by being close to major entertainment and sports stadiums, according to industry reports.Cherry Hill

The Cherry Hill, Virginia area is where the Potomac River meets Occoquan Bay. The region has seen a 48% boom in population growth from 2010 through 2020. Easy access to Route 95 and an easy commute to the D.C. metro area is the main reason why median sales prices went up from $511,000 to $670,000 as of May. As expected from median home prices, the Cherry Hill cost of living is about 15% higher than the U.S. national average, according to industry reports.

More than Properties

Mortgage rates and median home price are among the many factors that people look for when buying a home in the Virginia markets. Purchasers also look for the quality of life, strong employment markets, good school systems, ways to have fun, and low crime rates.

Check out these locations and contact a qualified, professional, and knowledgeable realtor who represents Virginia to help you in your hunt for the best investments.