diff --git a/moto/ec2/models.py b/moto/ec2/models.py
index 25befabc0..00e0f4960 100755
--- a/moto/ec2/models.py
+++ b/moto/ec2/models.py
@@ -1812,12 +1812,13 @@ class EBSBackend(object):
 
 
 class VPC(TaggedEC2Resource):
-    def __init__(self, ec2_backend, vpc_id, cidr_block, is_default):
+    def __init__(self, ec2_backend, vpc_id, cidr_block, is_default, instance_tenancy='default'):
         self.ec2_backend = ec2_backend
         self.id = vpc_id
         self.cidr_block = cidr_block
         self.dhcp_options = None
         self.state = 'available'
+        self.instance_tenancy = instance_tenancy
         self.is_default = 'true' if is_default else 'false'
         self.enable_dns_support = 'true'
         # This attribute is set to 'true' only for default VPCs
@@ -1831,6 +1832,7 @@ class VPC(TaggedEC2Resource):
         ec2_backend = ec2_backends[region_name]
         vpc = ec2_backend.create_vpc(
             cidr_block=properties['CidrBlock'],
+            instance_tenancy=properties.get('InstanceTenancy', 'default')
         )
         return vpc
 
@@ -1843,6 +1845,8 @@ class VPC(TaggedEC2Resource):
             return self.id
         elif filter_name in ('cidr', 'cidr-block', 'cidrBlock'):
             return self.cidr_block
+        elif filter_name in ('instance_tenancy', 'InstanceTenancy'):
+            return self.instance_tenancy
         elif filter_name in ('is-default', 'isDefault'):
             return self.is_default
         elif filter_name == 'state':
@@ -1866,9 +1870,9 @@ class VPCBackend(object):
         self.vpcs = {}
         super(VPCBackend, self).__init__()
 
-    def create_vpc(self, cidr_block):
+    def create_vpc(self, cidr_block, instance_tenancy='default'):
         vpc_id = random_vpc_id()
-        vpc = VPC(self, vpc_id, cidr_block, len(self.vpcs) == 0)
+        vpc = VPC(self, vpc_id, cidr_block, len(self.vpcs) == 0, instance_tenancy)
         self.vpcs[vpc_id] = vpc
 
         # AWS creates a default main route table and security group.
diff --git a/moto/ec2/responses/vpcs.py b/moto/ec2/responses/vpcs.py
index 58c5e80dd..3d2a99894 100644
--- a/moto/ec2/responses/vpcs.py
+++ b/moto/ec2/responses/vpcs.py
@@ -7,7 +7,8 @@ from moto.ec2.utils import filters_from_querystring, vpc_ids_from_querystring
 class VPCs(BaseResponse):
     def create_vpc(self):
         cidr_block = self.querystring.get('CidrBlock')[0]
-        vpc = self.ec2_backend.create_vpc(cidr_block)
+        instance_tenancy = self.querystring.get('InstanceTenancy', ['default'])[0]
+        vpc = self.ec2_backend.create_vpc(cidr_block, instance_tenancy)
         template = self.response_template(CREATE_VPC_RESPONSE)
         return template.render(vpc=vpc)
 
@@ -51,7 +52,7 @@ CREATE_VPC_RESPONSE = """
       <state>pending</state>
       <cidrBlock>{{ vpc.cidr_block }}</cidrBlock>
       <dhcpOptionsId>{% if vpc.dhcp_options %}{{ vpc.dhcp_options.id }}{% else %}dopt-1a2b3c4d2{% endif %}</dhcpOptionsId>
-      <instanceTenancy>default</instanceTenancy>
+      <instanceTenancy>{{ vpc.instance_tenancy }}</instanceTenancy>
       <tagSet>
         {% for tag in vpc.get_tags() %}
           <item>
@@ -75,7 +76,7 @@ DESCRIBE_VPCS_RESPONSE = """
         <state>{{ vpc.state }}</state>
         <cidrBlock>{{ vpc.cidr_block }}</cidrBlock>
         <dhcpOptionsId>{% if vpc.dhcp_options %}{{ vpc.dhcp_options.id }}{% else %}dopt-7a8b9c2d{% endif %}</dhcpOptionsId>
-        <instanceTenancy>default</instanceTenancy>
+        <instanceTenancy>{{ vpc.instance_tenancy }}</instanceTenancy>
         <isDefault>{{ vpc.is_default }}</isDefault>
         <tagSet>
           {% for tag in vpc.get_tags() %}
diff --git a/tests/test_ec2/test_vpcs.py b/tests/test_ec2/test_vpcs.py
index def2700e3..513238001 100644
--- a/tests/test_ec2/test_vpcs.py
+++ b/tests/test_ec2/test_vpcs.py
@@ -246,6 +246,7 @@ def test_default_vpc():
     # Create the default VPC
     default_vpc = list(ec2.vpcs.all())[0]
     default_vpc.cidr_block.should.equal('172.31.0.0/16')
+    default_vpc.instance_tenancy.should.equal('default')
     default_vpc.reload()
     default_vpc.is_default.should.be.ok
 
@@ -271,6 +272,9 @@ def test_non_default_vpc():
     vpc.reload()
     vpc.is_default.shouldnt.be.ok
 
+    # Test default instance_tenancy
+    vpc.instance_tenancy.should.equal('default')
+
     # Test default values for VPC attributes
     response = vpc.describe_attribute(Attribute='enableDnsSupport')
     attr = response.get('EnableDnsSupport')
@@ -280,6 +284,19 @@ def test_non_default_vpc():
     attr = response.get('EnableDnsHostnames')
     attr.get('Value').shouldnt.be.ok
 
+@mock_ec2
+def test_vpc_dedicated_tenancy():
+    ec2 = boto3.resource('ec2', region_name='us-west-1')
+
+    # Create the default VPC
+    ec2.create_vpc(CidrBlock='172.31.0.0/16')
+
+    # Create the non default VPC
+    vpc = ec2.create_vpc(CidrBlock='10.0.0.0/16', InstanceTenancy='dedicated')
+    vpc.reload()
+    vpc.is_default.shouldnt.be.ok
+
+    vpc.instance_tenancy.should.equal('dedicated')
 
 @mock_ec2
 def test_vpc_modify_enable_dns_support():