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Ruidoso, NM
Generally Investor Friendly
Local STR Agent
Local STR Agent

Yes, short-term rentals are explicitly allowed in Ruidoso, NM with proper licensing and compliance with local regulations. The Village of Ruidoso has established a comprehensive regulatory framework for short-term rentals through Ordinance 2025-01, adopted in February 2025. STRs are defined as the rental of a legally-permitted dwelling unit for periods of less than 30 consecutive days, and they are permitted in most established residential structures throughout the village.
Ruidoso hosts earn a median $28,930/year with $237 ADR and 40% occupancy.
Top performers pull in $44,188+ per year.
See the full Ruidoso market breakdownStarting a compliant short-term rental business in Ruidoso requires a systematic approach involving state registration, village permitting, and ongoing compliance management. Here's your step-by-step roadmap:
First, you must obtain a CRS Business Registration Number from the New Mexico Taxation and Revenue Department. This is a prerequisite for all village-level applications and can be obtained through the state's online portal.
The core of Ruidoso's STR regulation involves obtaining a Short-Term Rental Permit through the MuniRevs online platform. The application process includes:
Before applying, ensure your property meets all safety and zoning requirements, including fire safety equipment installation, smoke alarm compliance, and adherence to occupancy limits.
1. CRS Business Registration Number
2. Short-Term Rental Permit
3. Annual Compliance Inspection
When applying for permits, you must provide:
Safety Equipment Documentation
Tax Registration and Compliance
Occupancy and Parking Requirements
Safety and Building Code Compliance
Operational Restrictions
Prohibited Property Types STRs are specifically NOT permitted in:
Lincoln County's regulations for STRs primarily involve business licensing requirements and health department oversight if food service is provided to guests. However, most operational regulations are governed by village ordinances within incorporated areas.
Tax Obligations
Health and Safety
Fire-Wise Community Requirements
Wildlife Safety Compliance
Chrysanti Jones
Planning & Zoning Department
Building Department
Village Manager's Office
Fire Department/Emergency Management
24/7 STR Complaint Hotline
New Mexico Taxation and Revenue Department
GovOS Support (MuniRevs Platform)
Tax Remittance Requirements: All short-term rentals rented for 29 days or less must collect Lodger's Tax (5%) and Gross Receipts Tax on the gross charge to guests. Even if platforms like Airbnb collect taxes automatically, property owners remain responsible for proper registration and filing.
Inspection Schedule: Annual compliance inspections are mandatory, with processing times up to 15 business days as required by ordinance. Properties found non-compliant face fines, permit suspensions, or revocations.
Three-Strike System: Unresolved issues may result in strikes against a permit, with three strikes leading to suspension or revocation of operating privileges.
Transition Period: The village recently launched new STR management software (RentalScape) in September 2025, with staff still becoming familiar with the platform. Additional processing time should be allowed during this transition period.
This comprehensive guide provides all essential information for operating a compliant short-term rental in Ruidoso, NM. Investors should maintain regular contact with village authorities and stay updated on regulatory changes to ensure ongoing compliance and successful operations.
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Ruidoso is a small mountain resort village in Lincoln County, New Mexico, tucked into the Sacramento Mountains of southern New Mexico. With a year-round population of roughly 8,000 residents, the village has a relaxed, alpine-meets-Southwest character, with tall ponderosa pines, mild summer temperatures, and a steady stream of visitors drawn by outdoor recreation, horse racing, and skiing. It serves as the primary gateway to the Mescalero Apache Reservation and the surrounding high country, and sits approximately 120 miles southeast of Albuquerque, the nearest major city.
One of the area's most celebrated draws is Ski Apache, a ski resort perched high on the Mescalero Apache Reservation. Owned and operated by the Mescalero Apache Tribe, the resort offers downhill skiing and snowboarding in winter and scenic chairlift rides in the warmer months, with lifts climbing above 11,000 feet in elevation. The drive from the village of Ruidoso to the resort base is roughly 18 to 20 miles, or about 30 to 40 minutes up a winding mountain road.
Just a short drive to the southeast lies the Lincoln Historic Site, the preserved frontier town often called the "Lincoln County War" town and a well-known stop along the Billy the Kid trail. The site features original 19th-century buildings, small museums, and occasional reenactments that bring Old West history to life. It is about a 20-minute drive from the village, making it an easy day trip for visitors interested in frontier-era New Mexico.
Ruidoso Downs Racetrack, on the southern edge of the village, is one of the country's premier quarter-horse racing venues. The track hosts the All American Futurity and All American Derby, two of the richest quarter-horse races in the world, drawing large crowds each summer for the racing season. A short drive in the opposite direction leads to Bonito Lake, a small, pine-ringed reservoir within the Lincoln National Forest that offers fishing, kayaking, and picnic areas in a quiet, family-friendly setting.
Ruidoso's blend of mountain scenery, cultural heritage, and four-season activities makes it a flexible and appealing base for short-term rentals. Visitors arrive year-round for skiing, racing, and hiking, while the proximity to historic Lincoln and the Mescalero high country adds depth beyond the village itself. For owners, this translates into a market that benefits from both summer outdoor travelers and winter ski-season demand, with a steady rhythm of regional and out-of-state guests throughout the year.
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