Executive Overview: Are Short‑Term Rentals Allowed in Gallup, NM?

Yes—short‑term rentals (STRs) are allowed in Gallup, but they are treated as an accessory use within single‑family residential zone districts and require a Conditional Use Permit (CUP). In practical terms, this means the property must retain the character and occupancy of a single‑family dwelling while operating as a home‑sharing business; the owner or a resident manager must occupy the property during guest stays, and the rental activity must be incidental to the primary residential use. The City’s Land Development Standards (LDS) spell out use‑specific standards and parking rules that apply to all accessory STRs, and the Planning & Zoning Commission can add site‑specific conditions on a case‑by‑case basis (for example, to address narrow streets or neighborhood safety).

Key takeaways for investors:

• STRs are a conditional, accessory use in single‑family residential zones—no blanket prohibition.
• A CUP is required; violations of the CUP or City standards can result in revocation.
• STR occupancy and guest access must match single‑family standards; parking must occur in designated areas (driveway/garage or permitted on‑street), and on‑street parking may be prohibited in specific locations.
• Tax compliance (sales and lodging taxes) is mandatory; the City emphasizes ongoing adherence.
• Commission discussions indicate existing STRs that existed before the code update were required to obtain a CUP; some chose to cease operations rather than comply.

Why this matters: Gallup treats STRs as a residential‑compatible use, not a commercial lodging use. This yields a compliance path that is manageable for owner‑operators but introduces more subjectivity through the CUP process and potential site‑specific conditions.

Starting a Short‑Term Rental Business in Gallup: Step‑by‑Step

1. Confirm zoning and eligibility

• Verify the property is within a single‑family residential zone district (e.g., SFR‑C).
• Confirm STR is permissible as an accessory use. If eligible, proceed to the CUP application.
• Note: STRs must remain incidental to the primary residential use, with the owner or resident manager living on site during guest stays.

2. Design the STR to meet use‑specific standards (non‑negotiables)

• Bathroom: Guests must have access to a private or shared full bathroom.
• Occupancy: STR occupancy may not exceed the occupancy allowed for single‑family use under the Municipal Code.
• Owner/manager presence: Guest stays may occur only within the dwelling unit occupied by the owner or a resident manager.
• Parking: All vehicles associated with the STR must park in designated areas (driveways/garages) or permitted on‑street; no parking on lawns or sidewalks.
• Taxes: Owner must pay all applicable local, state, and federal taxes, including sales and lodging taxes.

3. Prepare for site‑specific parking and safety conditions

• The Commission may add location‑specific conditions. In one case (Case #19‑00700002), on‑street parking was prohibited along Bambino Road and Monterey Drive due to narrow pavement widths (approximately 22–23 feet) and safety concerns.
• Plan your guest parking strategy to avoid reliance on on‑street parking if your block is tight. A two‑car garage and driveway can typically accommodate two owner vehicles plus guest parking in the driveway if managed well.

4. File for a Conditional Use Permit (CUP)

• Submit the CUP application to the Planning & Development Department (see Contact Information below).
• Include a site plan showing parking areas, driveway dimensions, and any garage capacity; add a narrative explaining how you’ll manage parking and guest turnover.
• If your street has documented visibility or width constraints, proactively propose mitigations (e.g., no on‑street parking; assigned spots; signage).

5. Tax registration and compliance

• Register with the New Mexico Taxation and Revenue Department to collect/remit gross receipts (sales) tax and lodging tax as applicable.
• Maintain documentation of tax filings and keep records for City or State audit upon request.

6. Operating procedures

• Implement a guest policy clarifying parking, occupancy limits, bathroom access, and quiet hours (even if not codified, this reduces neighbor friction).
• Monitor and enforce conditions; the Commission can revoke a CUP for violations.

7. Post‑approval monitoring and renewals

• Maintain compliance with all conditions; repeated violations can lead to revocation.
• Track regulatory updates via the Planning & Development Department and the City’s LDS.

Required Documents, Permits, Licenses, and Guidelines

Permits and approvals

• Conditional Use Permit (CUP) for an accessory STR in single‑family residential zone districts.

Application components (typical)

• Completed CUP application form.
• Site plan (showing property lines, driveway, garage, and designated parking areas).
• Basic floor plan highlighting the STR bedroom(s) and full bathroom access.
• Parking plan: number of on‑site spaces (garage/driveway) and strategy for guest parking; include any constraints (e.g., narrow streets).
• Owner/manager declaration: confirmation that the owner or a resident manager will occupy the property during guest stays.
• Acknowledgment of use‑specific standards and willingness to comply with any site‑specific conditions (e.g., on‑street parking prohibitions).

Licenses, registrations, and taxes

• State tax registration: gross receipts (sales) tax and lodging tax with the New Mexico Taxation and Revenue Department.
• Sales and lodging tax remittances per State requirements.
• Ongoing adherence to local, state, and federal regulations (the City references compliance broadly).

Code references

• Title 10 Land Development Standards (LDS), Section 10‑3‑C‑g‑iii (Use‑specific standards for accessory STRs).
• Table 10‑3‑1 (Use Table) listing STR as an accessory use in single‑family residential zones.
• Section on parking standards (designated parking areas only; no parking on landscaped areas or sidewalks).
• Resolution No. RP2019‑07 (Case #19‑00700002) illustrating approved conditions for a specific STR.

Note on timing and process

• The Commission holds public hearings on CUPs; neighbors may testify for or against.
• A ten‑day appeal period applies after approval; violations can trigger revocation proceedings.

Regulations: City, County, and State

City of Gallup (Municipal)

• Zoning status: STR is a permitted accessory use in single‑family residential zone districts, subject to a CUP.
• Occupancy and use:
  • STR occupancy may not exceed single‑family occupancy standards.
  • Guests must have access to a full bathroom (private or shared).
  • Guest stays may occur only in the dwelling unit where the owner or resident manager resides.
• Parking:
  • All vehicles associated with the STR must park in designated areas (driveways/garages) or permitted on‑street; parking on lawns or sidewalks is prohibited.
  • The Commission may impose project‑specific conditions to address safety (e.g., prohibiting on‑street parking in narrow street corridors).
• Taxes and compliance:
  • Owners must pay all applicable local, state, and federal taxes (sales and lodging taxes).
  • Compliance with all local, state, and federal regulations is required.
• Enforcement and revocation:
  • Violations of CUP conditions can lead to revocation; the Commission has authority to enforce conditions for neighborhood protection.

Examples from practice

• Case #19‑00700002 (1700 Monterey Drive): The Commission approved an STR CUP with seven conditions, including a prohibition on on‑street parking along Bambino Road and Monterey Drive due to narrow pavement (approximately 22–23 feet) and safety considerations.
• Pre‑update operations: Many existing STRs were required to obtain a CUP after the City codified standards; a majority of notified operators chose to cease rather than comply.

McKinley County

• No county‑specific STR regulations are evident in the provided materials. Investors should verify if any county tax or registration rules apply (particularly for lodgers’ tax), and whether any county‑level zoning or health regulations affect properties outside City limits.

State of New Mexico

• Building and housing context:
  • New Mexico has adopted Appendix Q of the 2018 International Residential Code (IRC) for tiny homes, signaling a permissive approach to alternative housing forms; this is indirectly relevant to STRs that might involve small dwellings or ADUs.
  • Statewide building code compliance remains the baseline for residential structures.
• Taxation:
  • STRs typically must register for gross receipts (sales) tax and lodging tax with the New Mexico Taxation and Revenue Department and remit taxes on lodging revenues.
• Municipal authority:
  • Local municipalities (e.g., Gallup) retain broad authority over land use, zoning, and STRs as conditional accessory uses.

Implications for investors

• Gallup’s STR rules are local and use‑specific. While State frameworks are permissive on housing forms and taxation, investors must treat Gallup’s CUP requirements and parking standards as primary constraints.

Contact Information (Local Authority in Charge of STRs)

City of Gallup – Planning and Development

• Planning and Development Department
• 110 West Aztec Avenue, Gallup, NM 87301
• Phone: 505.863.1240
• Email: cstrain@gallupnm.gov
• Director: Clyde “C.B.” Strain
• Website (land use/zoning): www.gallupnm.gov/803/Land-Use-Zoning---Governing-Codes-Laws

Notes:

• CUP applications and zoning verification are administered through Planning & Development.
• For taxation, consult the New Mexico Taxation and Revenue Department for gross receipts and lodging tax registration.

Links to Source Pages

• Gallup Planning & Zoning Commission Agenda & Minutes (November 13, 2019; including case #19‑00700002 and LDS standards discussion): www.gallupnm.gov/AgendaCenter/ViewFile/Agenda/_11132019-595
• City of Gallup Land Use, Zoning & Governing Codes & Laws (reference point for the LDS): www.gallupnm.gov/803/Land-Use-Zoning---Governing-Codes-Laws
• Tiny Home Regulations in New Mexico – Zook Cabins (state context on tiny homes and IRC Appendix Q): www.zookcabins.com/regulations/tiny-home-regulations-in-new-mexico

Practical Guidance and Risks for Investors

• Expect a public hearing and neighbor input. Prepare a clear parking plan and demonstrate how you will protect neighborhood safety.
• Anticipate site‑specific conditions on streets with narrow pavement or visibility issues; on‑street parking may be prohibited by condition.
• Model your business around owner‑occupied, home‑sharing—Gallup’s framework is not designed for investor‑only, turnkey lodging operations.
• Build a compliance record from day one: taxes, occupancy, parking, and condition monitoring. Violations can jeopardize your CUP.
• Verify county rules if your property lies outside City limits; taxation and health requirements may differ.
• Consider IRC Appendix Q if your STR involves small dwellings or ADUs; it reflects a statewide openness to compact housing, which can align with STR formats, but local zoning and CUP standards remain controlling.

This guide consolidates the requirements and practical considerations investors need to evaluate before acquiring or converting property into an STR in Gallup, NM. If you are targeting single‑family neighborhoods, the accessory STR model is viable, but successful operation hinges on diligent CUP compliance, parking management, and tax registration.