New Mexico Short-Term Rental Rules, City by City (Verified July 2026)
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Buying a short-term rental in the wrong New Mexico jurisdiction, or in the right one without a permit, is a costly mistake. This is the city-by-city status table we check before writing a single STR loan: dated, sourced, and re-verified when the councils move.
The 2026 status table
| Jurisdiction | Status (as of July 2026) | Cost | Key rules |
|---|---|---|---|
| Santa Fe (city) | Capped, not banned | per city fee schedule | 1,000-permit citywide cap; one per natural person (no LLCs/entities); 50-ft spacing; expires Dec 31, renew Jan 1–April 15 |
| Santa Fe County (uninc.) | Capped by community | per county schedule | Non-owner-occupied capped at 3% or 7% of housing stock in 35 named communities; owner-occupied unrestricted; separate regime from the city |
| Albuquerque | Legal with permit (O-20-30, 2021) | $120 first year / $90 renewal | Good Neighbor Agreement posted; occupancy caps; STR insurance; local manager within 20 miles |
| Taos (town) | Legal with town permit | per town schedule | 5% lodgers' tax; distinct from Taos County and Taos Ski Valley |
| Taos County (uninc.) | Capped at 400 permits | per county schedule | Ordinance 2024-4, effective Oct 21, 2024; exemptions for long-tenured residents and affordable-housing operators |
| Taos Ski Valley | Regulated separately | confirm with the village | Incorporated village governs STRs on its own; confirm current rules directly, we don't publish unverified fees |
| Ruidoso | Legal with CRS + permit (2025-01) | $300 permit + renewal | Annual compliance inspection; fire/flood rebuild fee waiver covers permit fees, not inspections |
| Las Cruces | Legal; enforcement began Jul 1, 2026 | ~$35/yr city + $50 + $35/yr Visit LC | New ordinance effective Jan 1, 2026; neighbor notification; local contact; many listings still unregistered mid-2026 |
Statuses verified July 2026 against city, county, and state sources; several regimes are mid-rollout or mid-enforcement. Truth or Consequences and Taos Ski Valley specifics are omitted here on purpose: confirm those directly with the jurisdiction. Always re-check before purchase.
Santa Fe: the one-per-person cap, and the separate county rules
The Santa Fe corrective is worth stating twice because entity buyers keep missing it: the city issues one short-term-rental permit per natural person, up to a 1,000-permit citywide ceiling, so an LLC cannot hold one. Owning the property in an LLC is fine for financing and liability; the STR permit still attaches to an individual. Outside the city, unincorporated Santa Fe County runs a different regime entirely: since January 2024 it caps non-owner-occupied STRs at 3% or 7% of local housing stock across 35 named communities, while leaving owner-occupied units unrestricted. City and county are two separate systems investors routinely conflate. Deep dive on the market itself: Santa Fe DSCR loans.
Can I run a short-term rental in Taos or Taos Ski Valley?
It depends which Taos. The Town of Taos permits STRs under its own ordinance and levies a 5% lodgers' tax. Unincorporated Taos County is stricter: Ordinance 2024-4, effective October 21, 2024, caps permits at 400 in the unincorporated county, with narrow exemptions for owners resident in the county 10 or more years and an affordable-housing carve-out, and operating without a valid permit is a petty misdemeanor. Taos Ski Valley, an incorporated village, regulates short-term rentals separately from the county; we don't publish specific Taos Ski Valley fees or caps because they weren't verified against a primary source this cycle, so confirm those directly with the village. Three jurisdictions, three rule sets, all within a short drive.
Albuquerque and Ruidoso
Albuquerque licenses short-term rentals under Ordinance O-20-30, adopted in 2021: a permit (secondary sources put fees near $120 the first year and $90 to renew; confirm the current schedule), a posted Good Neighbor Agreement, occupancy caps, STR-specific insurance, and a local property manager within 20 miles of the city. Ruidoso, rebuilding after the 2024 South Fork Fire, Salt Fire, and flooding, adopted Ordinance 2025-01: a CRS Business Registration Number, a $300 short-term-rental permit, annual renewal, and an annual compliance inspection. The corrective on Ruidoso: the Village waived permit fees for fire and flood-affected rebuilds, but not the inspections or the building and safety code compliance, so a rebuild still has to meet code even when the permit fee is forgiven. Financing for any of these: New Mexico STR loans, and the tax math: the GRT guide.
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Frequently asked questions
Is Airbnb banned in Santa Fe?
No. Santa Fe is capped, not banned: a 1,000-permit citywide cap issued one permit per natural person, so an LLC or entity cannot hold one, plus 50-foot spacing and December 31 expiry (as of July 2026). Separately, unincorporated Santa Fe County caps non-owner-occupied STRs at 3% or 7% of housing stock in 35 communities. Two different regimes, neither a ban.
Does Santa Fe County limit short-term rentals outside city limits?
Yes. Since January 2024, unincorporated Santa Fe County caps non-owner-occupied short-term rentals at 3% or 7% of local housing stock across 35 named unincorporated communities, while owner-occupied units stay unrestricted. This is a separate regime from the City of Santa Fe's 1,000-permit one-per-person cap, and investors regularly conflate the two.
Can I run a short-term rental in Taos or Taos Ski Valley?
It depends on the jurisdiction. Unincorporated Taos County caps permits at 400 (Ordinance 2024-4, effective October 21, 2024). The Town of Taos permits STRs and levies a 5% lodgers' tax. Taos Ski Valley, an incorporated village, regulates separately, so confirm its specific rules directly before assuming county rules apply.
What permits does Albuquerque require for a short-term rental?
A city permit under Ordinance O-20-30 (adopted 2021), with fees secondary-sourced near $120 the first year and $90 to renew, plus a posted Good Neighbor Agreement, occupancy caps, STR-specific insurance, and a local property manager within 20 miles of the city. Confirm the current fee schedule with the city, and register for a CRS number for the Gross Receipts Tax.
What are Ruidoso's short-term rental rules after the 2024 fires and floods?
Ordinance 2025-01 requires a CRS number, a $300 short-term-rental permit, annual renewal, and an annual compliance inspection. For properties rebuilding after the 2024 South Fork Fire, Salt Fire, and flooding, the Village waived permit fees, not inspections or building-code compliance. A fire or flood rebuild still has to meet code even when the permit fee is forgiven.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. New Mexico Gross Receipts Tax, lodgers' tax, city and county STR rules, valuation-cap treatment, and federal BOI reporting all change; verify current requirements with the city or county, your CPA, or a New Mexico real estate attorney before you buy. Loans are subject to buyer and property qualification.