Top Virginia Lake Town for Vacation Homes: Earn $80,000 in Yearly Rental Income

With more than 200 miles of beautiful shoreline, Virginia’s fourth largest lake is a haven for vacationers seeking a laid-back vibe and stunning waterfront views. During the warmer months, the area becomes abuzz with water sports enthusiasts, sunbathers, and those simply seeking to escape the hustle and bustle of nearby Washington D.C. The nation’s capital is a short hour-and-a-half drive from Lake Anna, adding to its appeal. Moreover, a home on Lake Anna is not only a delightful getaway but also a wise real estate investment, as the area recently topped Vacasa’s latest report on the best places to buy a vacation home based on capitalization rate or return on investment.

According to the vacation home rental company, Lake Anna homeowners can expect to make an average of $81,293 in yearly rental income, equating to a capitalization rate of 12.2 percent. Consequently, investors are drawn to this high return potential.

“One of Virginia’s most beloved destinations, it’s no surprise that Lake Anna is so appealing to potential vacation homeowners with 17 miles of sandy beaches, a state park filled with wildlife, French-style wineries, and a host of seasonal outdoor activities,” Daned Kirkham, senior director of real estate for Vacasa, noted. “For those looking for a high return on their vacation rental investment, Lake Anna attracts a myriad of travelers year-round, providing second home buyers with a steady stream of guests and vacation rental income.” This consistent demand adds to the lake’s robust real estate market.

Furthermore, the median home value in the area is $435,000, which is more affordable than many other popular lakefront communities across the country. What makes the lake especially attractive for second homeowners is its unique layout: a “private” side without commercial activity juxtaposed with a public side that features waterfront restaurants and scenic beaches.

Lake Anna has long been a favorite retreat for families in Virginia and beyond. Created in the 1970s to provide cooling water for a nearby power plant, its waters differ significantly in temperature; notably, the southern edge of the lake, known as the “hot side,” is much warmer than the northern shore where the plant discharges cooled water.

Exploring the lake is best done by renting a kayak, canoe, or stand-up paddleboard. For larger groups, pontoon boats accommodating up to 15 people are available. Additionally, water and Jet Ski rentals add excitement for those seeking an adrenaline rush. Fishing enthusiasts flock to Lake Anna for its ample striper and largemouth bass populations, making it a prime spot for anglers. Also, a 3,127-acre state park with a large public beach serves as the perfect locale for soaking up the sun and enjoying family picnics amidst stunning scenery. Visitors will also find over 15 local craft breweries, wineries, and distilleries, such as Cooper Vineyards and Lake Anna Winery, providing ample opportunities for exploration beyond the lake itself.

Other notable destinations on Vacasa’s list include Port Aransas, Texas, which takes the second spot with a cap rate of 10.7 percent and $53,717 in rental income potential, alongside Palm Coast in Florida, offering a 10.3 percent cap rate and $59,482 in potential income. For more insights, the full report can be found here.