Do I pay Page County's lodging tax too?

No. The county's 10% is not imposed inside a town that levies its own, and Luray levies its own 10%.

Can I rent out rooms while I stay in the house?

Not as a lodging house in a residential district. There, each rental must cover the entire structure, with only one rental transaction at a time.

Short-term rental rules

How to get a short-term rental approved in Town of Luray, Virginia

Luray zones a short-term rental as a lodging house. In the R-3 district it needs a special use permit, which costs $285 plus the cost of 4 newspaper ads and is decided by Town Council after Planning Commission and Council public hearings; in the B-1 district it is allowed by right. Every lodging house is limited to 3 bedrooms and 6 overnight guests and needs a town business license and $1,000,000 in commercial liability insurance. Guests pay the town's 10% lodging tax, not the county's.

Verified against the sources below on 2026-09-23.

Approval: Two paths
Permit fees: $285, or $40
Public hearings: 0 to 2, by path
Lodging tax: 10%

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Which permit you need

Special Use Permit in R-3^2,3,4,6

A lodging house in the R-3 district. It must be a single-family dwelling, manufactured home, or mobile home, rented whole to one party at a time.

Fee:: $285, plus the cost of 4 ads (a site plan review fee may also apply)
Decided by:: Town Council, after a Planning Commission hearing
Public hearings:: 2
Timeline:: Planning Commission public hearing, then Town Council public hearing, each with notice under Va. Code 15.2-2204. The application includes a site plan, floor plan, contacts, business operations plan, insurance certificate, posting placard, and an updated certificate of occupancy.

By right in B-1^2,4,6

A lodging house in the B-1 district that meets the section 519 standards.

Fee:: $40 new business license application fee per category
Decided by:: No zoning hearing; the town business license is required
Public hearings:: 0
Timeline:: No public hearing. Get the business license and register for the lodging tax before the first rental.

How the process works

STEP 1
Feasibility check
Confirm the zoning is R-3 or B-1, count bedrooms against the 3-bedroom and 6-guest limit, and confirm room for 2 on-site parking spaces (1 for a one-bedroom).
STEP 2
Insurance and paperwork
Get a $1,000,000 commercial general liability policy endorsed for a lodging house and an updated certificate of occupancy. In R-3, prepare the site plan, floor plan, contacts, business operations plan, and posting placard.
STEP 3
Decision
B-1: no hearing. R-3: pay $285 plus the cost of 4 ads, then attend the Planning Commission and Town Council public hearings.
STEP 4
Launch
Get the town business license, register for the 10% lodging tax with the Town Treasurer, post the required notices, and start the guest registry.

The rules

What counts: A lodging house: a structure other than a hotel, motel, or bed and breakfast that is routinely rented for less than 30 consecutive days.¹
Where it is allowed: R-3 by special use permit and B-1 by right. Lodging houses are not listed in R-1, R-2, R-4, the townhouse and apartment districts, or VR. The ordinance also lists them in M-1; confirm the permit type there with the town.²
Occupancy: No more than 3 bedrooms rented and 6 overnight guests, no more than 10 guests and visitors on the property at any time, and at least one overnight guest 18 or older.⁴
Parking: One on-site off-street space for a one-bedroom lodging house; two on-site spaces for all others.⁴
Insurance: Commercial general liability insurance specifically endorsed for use as a lodging house, at least $1,000,000, from a Virginia-licensed insurer. The certificate goes with the special use permit application.⁴
Residential districts: A single-family dwelling, manufactured home, or mobile home only; one rental transaction at a time; each rental covers the entire structure.⁴
Life safety: A smoke detector for each bedroom, a carbon monoxide detector on each sleeping floor if the home uses propane, and fire extinguishers in or near the kitchen and any area with a flame, inspected quarterly.⁴
Guest registry and postings: Keep a registry of occupants' names, addresses, and dates, available to the town on request. Post the town's ordinance summary, the parking plan, trash pickup schedule, emergency numbers, and guest rules.⁴
Revocation: The noise ordinance applies, and repeated violations can revoke the special use permit.⁴

Lodging taxes

Tax	Rate	Filed with	When	Airbnb and VRBO collect it?
Town of Luray transient occupancy tax^5,6,7Inside town limits. Page County's 10% does not also apply.	10%	Town Treasurer	Monthly, by the 20th of the following month. A host whose sales all go through booking platforms may file an annual attestation instead.	Yes, on their bookings

What sinks applications here

Bedroom cap

No more than 3 bedrooms can be rented and 6 overnight guests hosted, so a larger home cannot be listed at full capacity.

Insurance endorsement

An ordinary homeowner's policy does not satisfy the rule: the policy must be commercial general liability, endorsed for a lodging house, for at least $1,000,000.

Most residential districts are closed

Lodging houses are not listed in R-1, R-2, or R-4. In residential zoning only R-3, by special use permit, is open.

Earn while you wait

Stays of 30 days or more: Outside the lodging house definition, which covers rentals of less than 30 consecutive days.¹ A furnished mid-term lease can carry the home while the permit is pending. How mid-term rentals work.

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For markets we do not manage in. We coach; you or your local team file.

Feasibility check against the rules on this page before you pay any fee
A filing calendar built around the local deadlines and hearings
Templates for the management plan, justification statement, and neighbor notice
One full review of your packet before you file
A hearing preparation call, where hearings apply

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Want someone on the ground to file, attend hearings, and run the rental? Tell us about the property and we will connect you with a vetted manager who works in Luray.

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Questions owners ask

01Do I pay Page County's lodging tax too?
No. The county's 10% is not imposed inside a town that levies its own, and Luray levies its own 10%.
02Can I rent out rooms while I stay in the house?
Not as a lodging house in a residential district. There, each rental must cover the entire structure, with only one rental transaction at a time.

Sources

1.Town of Luray Code, Appendix A Zoning, Definitions (Lodging house), Appendix A, 202 (Supplement 59, updated 2026-07-14). Retrieved 2026-09-23.
2.Town of Luray Code, Appendix A Zoning, District regulations, Appendix A, 403.2(n) R-3; 406.1(tt) B-1; 407.1(bb) M-1 (Supplement 59, updated 2026-07-14). Retrieved 2026-09-23.
3.Town of Luray Code, Appendix A Zoning, Special use permits, Appendix A, 703 (Ord. of 9-8-2025). Retrieved 2026-09-23.
4.Town of Luray Code, Appendix A Zoning, Lodging houses, Appendix A, 519.1 to 519.5 (Ord. of 2-13-2022; Ord. of 9-9-2024). Retrieved 2026-09-23.
5.Town of Luray Code, Transient occupancy tax, 78-142 to 78-144 (Ord. of 5-13-2024; Ord. of 6-9-2025). Retrieved 2026-09-23.
6.Town of Luray Rate and Fee Schedule, July 2026 to June 2027 (July 2026 to June 2027). Retrieved 2026-09-23.
7.Page County Code, Transient occupancy tax, 105-17.A (Amended 5-6-2024 and 11-17-2025). Retrieved 2026-09-23.

Local rules change. We recheck these sources on a schedule and before every filing; if you spot a change, tell us at info@propmanageplus.com. This page is general information, not legal advice.

Questions about a property in Luray? Call 540-218-8969 or send us the address.