A record-setting 39,000 single-family rental homes were delivered nationwide in 2024 – nearly six times the pre-pandemic average and clear proof that BTR has jumped from niche to mainstream.

The demand for housing across Northern Virginia remains high, but market conditions and evolving consumer preferences are shifting how that demand is met. One asset class that has gained national traction and is now making inroads locally is the Build-to-Rent (BTR) community. Purpose-built, professionally-managed single-family rental neighborhoods are drawing institutional capital, first-time households, and even downsizing empty-nesters who value flexibility over a 30-year mortgage.

But as the BTR model grows, it also brings unique zoning, planning, and legal challenges that stakeholders must navigate carefully. This blog explores the legal and planning implications of BTR projects and offers guidance on how to approach them within the Northern Virginia landscape.

What Are Build-to-Rent (BTR) Communities?

Build-to-Rent (BTR) communities are purpose-built residential developments consisting primarily or exclusively of single-family homes that are leased, not sold, to tenants. While rental townhomes and apartments have long been a staple of the Northern Virginia housing market, BTR represents a hybrid model: the form and scale of a suburban subdivision with the management and operation of a multifamily asset.

Unlike scattered-site rental homes, BTR communities are master-planned, professionally managed, and often include amenities like pools, clubhouses, and dog parks—features typically associated with owner-occupied neighborhoods. As affordability pressures increase and mortgage rates remain elevated, more families and professionals are turning to high-quality rental housing as a long-term option, fueling demand for these developments.

Across the country, BTR development has accelerated, and we’re now seeing that trend take hold in Loudoun County, Prince William County, and Fairfax County, where land availability and market demand intersect.

Zoning Challenges Facing BTR Developments

Most zoning ordinances in Northern Virginia still operate under a binary structure—single‑family for‑sale housing on one side and multifamily rental on the other. BTR, which combines aspects of both, doesn’t always fit neatly into either category.

Common pinch points include:

• Permitted‑use ambiguity. Does the locality call a BTR community “multifamily” because it has one corporate owner, or “single‑family” because of detached lot lines?
• Density & lot coverage. BTR streetscapes often mirror townhouse setbacks even when the units are detached.
• Parking math. Renters share cars differently from homeowners, yet many codes still apply suburban single‑family minimums.
• Open‑space ratios & amenities. Planners may want parks sized for subdivision residents, but BTR operators also need leasing offices, dog runs, and package lockers.

Developers may need rezoning, special‑use permits, or negotiated proffers to reconcile these gaps. Understanding each locality’s code definitions—and how staff interpret them—is essential to site selection and entitlement strategy.

HOA and Community Association Conflicts

Another legal consideration involves the interaction between BTR projects and homeowners associations (HOAs). In some cases, new BTR developments are proposed adjacent to or within master-planned communities governed by HOAs. In others, developers may create a new association to manage common areas and enforce property standards.

Concerns from neighboring HOAs often focus on the potential for decreased property values, increased transiency, and questions about maintenance or enforcement standards for rental properties. While many BTR developers invest significantly in upkeep and onsite management, the rental model can raise eyebrows among established communities accustomed to owner-occupants.

Legal issues may arise around:

• Whether HOAs can enforce rental caps or restrict lease terms
• Whether rental-only communities violate restrictive covenants
• Conflicts over shared amenities or private road maintenance

Virginia law generally provides flexibility for developers to establish rental communities, but disputes over interpretation of HOA documents and covenants, conditions, and restrictions (CC&Rs) are not uncommon. Early coordination with counsel is key to mitigating friction and ensuring compliance with applicable statutes such as the Virginia Property Owners’ Association Act.

Spotlight: The Hybrid “Rent‑Then‑Sell” Model

Prince William County has allowed proffers for Build‑to‑Rent communities that permit developers to transition homes from rental to for‑sale after the projects stabilize.
These proffers cover:

• Formation of an HOA at the time a conversion election is made, with covenants governing architectural standards, common‑area ownership, and maintenance responsibilities.
• Preservation of affordable unit commitments regardless of tenure, ensuring ADU obligations remain enforceable through any transition.
• Linking any conversion from rental to for‑sale to infrastructure completion, so that key improvements—such as roads, stormwater facilities, and amenities—are fully delivered before units are sold individually.

This “rent‑then‑sell” framework offers a flexible entitlement structure that jurisdictions across Northern Virginia can adapt to and balance evolving housing models with community protection and policy consistency.

Planning and Infrastructure Implications

Beyond zoning and legal conflicts, BTR communities raise important land use planning and infrastructure questions. Because these developments mirror traditional subdivisions in form, they often generate similar impacts on schools, roads, public safety services, and utilities—but are sometimes underestimated in planning models that rely on assumptions tied to homeownership.

Localities may need to revisit how BTR communities are integrated into comprehensive plans and housing needs assessments, especially as these projects are not always clearly reflected in existing data. Questions that planners and elected officials must consider include:

• Are BTR communities being properly accounted for in school enrollment forecasts?
• How are transportation impacts being modeled for high-density rental subdivisions?
• Are affordable housing mandates or incentives being applied to BTR projects?
• Do local ADU (Accessory Dwelling Unit) or missing middle housing policies consider BTR as a contributing supply?

In many ways, the BTR model can align with regional housing goals by providing flexible, market-rate rental options in suburban settings. But this alignment must be supported by thoughtful planning and clear regulatory treatment.

Legal Takeaways and Strategic Guidance

As BTR continues to evolve from a national trend to a regional development reality, Northern Virginia stakeholders—including developers, landowners, planners, and neighborhood groups—need to be prepared for the legal nuances this model presents.

From zoning interpretations to HOA governance, and from comprehensive plan alignment to public engagement strategy, BTR developments require a coordinated legal and planning approach. Working with an experienced zoning and land use attorney during the early stages of project scoping can reduce delays, prevent disputes, and help ensure a successful outcome.

If you are exploring a build-to-rent opportunity—or responding to one in your community—please contact Andrew Gregg at (703) 284-7254 or agregg@beankinney.com.

This article is for informational purposes only and does not contain or convey legal advice. Consult a lawyer. Any views or opinions expressed herein are those of the authors and are not necessarily the views of any client.