Military stationed overseas, resident of WA earned money renting our home in VA and independent contract work in VA. Where was the income earned:Washington or Virginia?

Virginia. The military residency rules apply to military and related pay, not to all income. Rental income and self-employment/ independent contractor income are not part of these rules- you are taxed on that type of income if the state has income tax.

While you are a resident of Washington for tax purposes (and thus don't have a return to file for that state), you will have a nonresident VA return. Money you make from renting property is taxed by the state where the property lies, and contractor income is taxed by VA if "sourced" there (i.e. you physically work there or earn money from customers/ clients based in VA). Although your domicile is in a state without tax, this will not keep you from possibly owing tax to Virginia.

See this Virginia FAQ:

Members of the armed forces who are not Virginia residents are not subject to Virginia income tax on their military pay, or on interest received from accounts held in Virginia banks. However, if you have other income from Virginia sources, such as a part-time job, or a business or trade conducted in Virginia, you are subject to tax on this income. You should report the income on a nonresident return, Form 763. Your residency status as a member of the military does not extend to your spouse or dependents. Non-military spouses and dependents living in Virginia are subject to the same residency and filing requirements as all other individuals.

http://www.tax.virginia.gov/content/military-tax-tips