Location matters more for short-term rental income than almost any other factor. The difference between a top DC neighborhood and an average one can be $20,000–40,000 in annual income.
Capitol Hill — Best Overall Market
ADR $180–240, occupancy 62–72%. Year-round consistency driven by government and tourism demand.
1-bed estimate: $52,000–72,000 annually
Dupont Circle — Best for Premium ADR
ADR $200–270, occupancy 60–70%. Premium corporate and diplomatic travel demand.
2-bed estimate: $80,000–105,000 annually
Georgetown — Best for Luxury Properties
ADR $240–320. DC's highest per-night rates. Complex zoning requires professional compliance management.
Adams Morgan & Navy Yard
Emerging markets with strong growth trajectories. Lower ADR but attractive cap rates.