Games like Paranormal VHS
Games like Paranormal VHS include Mouthwashing, Outlast, Firewatch, Still Wakes the Deep, and Layers of Fear (2016). We matched them by the tags players give Paranormal VHS on Steam (Indie, Gore, Adventure, Walking Simulator, and Horror): closest matches first, and among equally close ones the better-known games.

Mouthwashing
Shared: Horror · Indie · Gore

Outlast
Shared: Horror · Gore · Singleplayer

Firewatch
Shared: Adventure · Walking Simulator · Indie

Still Wakes the Deep
Shared: Gore · Horror · Walking Simulator

Layers of Fear (2016)
Shared: Horror · Walking Simulator · Indie

What Remains of Edith Finch
Shared: Walking Simulator · Adventure · Indie

SOMA
Shared: Horror · Gore · Atmospheric

Welcome to Kowloon
Shared: Horror · Adventure · Walking Simulator

No, I'm not a Human
Shared: Indie · Horror · Singleplayer

Poppy Playtime
Shared: Horror · Singleplayer · Indie

Psalm 5:9-13
Shared: Indie · Horror · Gore

Buckshot Roulette
Shared: Horror · Indie · Dark

Little Nightmares
Shared: Adventure · Horror · Indie

Amnesia: The Dark Descent
Shared: Gore · Horror · Indie

Outlast 2
Shared: Horror · Gore · Singleplayer

From The Darkness
Shared: Indie · Horror · Walking Simulator

Little Nightmares II
Shared: Adventure · Horror · Singleplayer

Don't Play This
Shared: Indie · Gore · Horror

Visage
Shared: Horror · Indie · Adventure

MiSide
Shared: Horror · Singleplayer · 3D

Fran Bow
Shared: Indie · Adventure · Horror

Blair Witch
Shared: Adventure · Indie · Horror

Scorn
Shared: Gore · Horror · Atmospheric

Amnesia: A Machine For Pigs
Shared: Walking Simulator · Horror · Atmospheric