Yes, OCCUPYING is a Scrabble word!

Letter values in Scrabble US: O 1, C 3, C 3, U 1, P 3, Y 4, I 1, N 1, G 2.

Is it a valid word?

OCCUPYING is a valid word in the official Scrabble dictionary (US), the UK Scrabble Dictionary and Words with Friends (ENABLE).

keep busy with
live (in a certain place)
occupy the whole of
be on the mind of
march aggressively into another's territory by military force for the purposes of conquest and occupation
require (time or space)
consume all of one's attention or time
assume, as of positions or roles

Also: lodge in, use up.