Damascus, VA website:
Lodging in Damascus:
Camping is not allowed in Damascus.  2 Campgounds are located nearby.

Beartree Campground (~ 7 long miles east of Damascus on Hw 58)
Reservations can be made by calling toll free 877-444-6777
Backbone Rock (campground)
3 miles south of Damascus on highway 716
Information and fees:
Wautaga Ranger District
Cherokee National Forest
Abingdon, VA website:
Lodging in Abingdon
The lodging in Abingdon closest to the race start will be off of I-81, near exit 19.
Family Vacation- Labor Day Weekend
      Tourism is a large industry in Damascus, and I encourage you to make this race weekend a family vacation.  Biking on the Virginia Creeper Trail is a fun activity, with many companies offering shuttles to the top of the trail with visitors biking back down to Damascus (http://www.vacreepertrail.com/).  Many hiking options exist in the Mount Rogers National Recreation Area (http://www.fs.fed.us/r8/gwj/mr/), including visiting the wild ponies in and around Grayson Highlands State Park (http://www.dcr.virginia.gov/state_parks/gra.shtml).
      If you are more interested in the arts, you may enjoy the Barter Theatre (http://www.bartertheatre.com/), the State Theatre of Virginia.