Yes, VILLAGE is a Scrabble word!

Letter values in Scrabble US: V 4, I 1, L 1, L 1, A 1, G 2, E 1.

Is it a valid word?

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

a community of people smaller than a town
a settlement smaller than a town
a mainly residential district of Manhattan; `the Village' became a home for many writers and artists in the 20th century

Also: small town, greenwich village.