Depends on the system, If you want scares PCVR is the way to go, there's a lot more stuff however and I can only speak for PSVR here (which has quite a decent selection of horror) most games that would be amazing or greatly scary just feel mediocre to good at best in the shadow of RE7. It sets the bar way to high that anything else doesn't even come close. There are a few games with good jump scares like Rush of blood, The inpatient, The persistence the first time you play, etc but nothing the builds pure fear and anxiety like you're being chased by a killer in a dream like in RE7.
That said though, Transference, A VR game by Frodo baggins is sitting on my ps4 waiting for 3 hours I can sit down and play it in full. Apparently it does better than most and there is a new game out yesterday I hav'nt tried yet, Home sweet home.
Despite the reviews I actually really loved Here They Lie. Early game, sure, but really fucks with your mind and pretty scary at times. Feels like a surrealistic Lynch movie or something like that.