Ruidoso Downs, New Mexico Short Term Rental Regulations Guide for Airbnb hosts

IMPORTANT NOTE: This guide covers STR regulations for both Ruidoso Downs (the City) and Ruidoso (the Village), as these are separate municipalities with different regulatory frameworks.

Overview: STR Status in Ruidoso Downs vs. Ruidoso

RUIDOSO DOWNS (City): Short-term rentals ARE allowed with specific regulations and permitting requirements.

RUIDOSO (Village): Short-term rentals ARE allowed but require comprehensive permitting, inspections, and compliance with updated Ordinance 2025-01 adopted February 2025.

What do Airbnb hosts actually earn in Ruidoso Downs?

Ruidoso Downs hosts earn a median $12,545/year with $174 ADR and 35% occupancy.

Top performers pull in $22,020+ per year.

See the full Ruidoso Downs market breakdown

How to Start a Short-Term Rental Business

Ruidoso Downs (City) - Step-by-Step Process:

Step 1: Business Registration

Register annually at the beginning of each year
Complete new registration form annually
Annual business license renewal fee: $35.00
Late registration penalty: $10.00 additional fee

Step 2: Obtain Required Permits

Complete Short-Term Rental Application
Obtain Lodger's Tax License Application
All construction permits must be obtained through New Mexico Construction Industries Division (state level)

Step 3: Contact Information

Planning Services Department handles initial sign-off
Contact City Clerk's office for Lodgers' Tax information

Ruidoso (Village) - Step-by-Step Process:

Step 1: State Registration

Obtain CRS Business Registration Number from New Mexico Taxation and Revenue Department
Register for Gross Receipts Tax (GRT)

Step 2: Village Permitting

Apply through MuniRevs online system
Pay $300 annual permit fee (covers permit, inspection, and notifications)
Complete annual compliance inspection

Step 3: Property Preparation

Ensure compliance with fire safety requirements
Install required safety equipment
Remove fire pits and open flame sources

Required Documents, Permits, Licenses, and Guidelines

Ruidoso Downs (City) Requirements:

Essential Documents:

Business License Registration (annual renewal required)
Short-Term Rental Application
Lodger's Tax License Application
Building permits (through state CID)

Key Contacts:

Planning Services Director: Jennet Recendez, CFM
Email: jrecendez@ruidosodowns.us
Phone: 575-378-1342 Ext. 1050

Additional Requirements:

Flood Plain Development Permit (if in special flood hazard area)
State construction permits (CID)

Ruidoso (Village) Requirements:

Essential Documents:

CRS Business Registration Number (state-issued)
Short-Term Rental Permit (village-issued)
Annual Inspection Certificate
Safety equipment documentation (fire extinguishers, smoke alarms)
Emergency procedures and contact information posting
Wildlife safety information

Application Materials:

Proof of village-issued address (photo with visible street number)
Letter from State showing CRS Business Registration Number
Compliance with all Village Code of Ordinances

Safety Requirements:

Fire safety compliance (Ruidoso is fire-wise community)
Wildlife safety education for guests
Emergency contact posting
Building code compliance

Specific Regulations by Jurisdiction

City of Ruidoso Downs:

Zoning & Land Use:

Building permits required through state Construction Industries Division
City planning sign-off required before state permitting
Floodplain regulations apply in special hazard areas
Zoning ordinances available in Chapter 155

Business Operations:

Annual business license renewal required
Separate short-term rental application required
Lodger's tax compliance mandatory

Fees:

Business license: $35.00 annually
Late registration penalty: $10.00
Additional fees for special permits (floodplain, etc.)

Village of Ruidoso:

Permitting (Ordinance 2025-01 - Effective February 2025):

Annual permit fee: $300
Annual compliance inspections mandatory
Reinspection fee: $50 if corrections needed
Late renewal penalty: $300

Occupancy & Safety Limits:

Maximum occupancy: 2 adults per sleeping unit
Minimum: 1 off-street parking space per sleeping unit
Open flames strictly prohibited (fire pits banned)
Fire safety equipment required

Tax Requirements:

5% Lodger's Tax on gross rental receipts
New Mexico Gross Receipts Tax (5.125% to 8.6875%)
Monthly remittance due by 25th of each month

Prohibited Property Types:

RVs, tents, garages, boats
Commercial or industrial buildings (unless specifically zoned)
Live-work units
Non-permanent structures

Enforcement:

Annual compliance inspections
Complaint-based enforcement
"Three strikes" policy leading to suspension/revocation
24/7 STR Hotline: 575-315-8354

State of New Mexico Requirements:

Business Registration:

CRS Business Registration Number required
Gross Receipts Tax registration
Transient accommodation license (if serving food)

Tax Compliance:

Monthly GRT filing requirements
Proper record keeping mandatory
Separate registration for different tax types

Contact Information

City of Ruidoso Downs Contacts:

Planning Services Department:

Jennet Recendez, CFM (Planning Services Director)
Phone: 575-378-1342 Ext. 1050
Email: jrecendez@ruidosodowns.us

Administrative Assistant:

Carlos Nava (GIS Technician)
Phone: 575-378-1342 Ext. 1051
Email: cnava@ruidosodowns.us

Building Permits:

Contact New Mexico Construction Industries Division (CID)
Albuquerque office: 505-222-9800

City Clerk's Office:

For Lodgers' Tax information
Contact through City Hall

Village of Ruidoso Contacts:

STR Administration:

Chrysanti Jones (Short-Term Rental Administrative Assistant)
Phone: 575-258-4343 X 1065
Email: ChrysantiJones@ruidoso-nm.gov

Emergency/Complaints:

24/7 STR Hotline: 575-315-8354
Online Complaint Portal: complaints-str.deckard.com/ruidoso-nm-str-complaints

Planning Department:

Phone: 575-258-6999
Address: 313 Cree Meadows Drive, Ruidoso, NM 88345

Building Inspector:

Mark Coker (Multi-Discipline Building Inspector)
Phone: 575-258-6999
Cell: 575-973-7765
Email: MarkCoker@ruidoso-nm.gov

Emergency Management:

Eric Queller (Emergency Manager)
Phone: 575-257-3473
Cell: 575-973-8963
Email: EricQueller@ruidoso-nm.gov

State Contacts:

New Mexico Taxation and Revenue:

Phone: 866-285-2996
Website: tax.newmexico.gov

Construction Industries Division:

Phone: 505-222-9800
Website: rld.nm.gov

Key Source Pages

Ruidoso Downs Municipal Information:

Main Planning & Zoning Page: ruidosodowns.us/departments/planning_and_zoning/index.php
Short-Term Rental Application: [Available through city website]
Lodger's Tax Information: [Contact City Clerk's office]

Ruidoso Village Information:

STR Compliance Portal: ruidoso-nm.gov/short-term-rentals
Registration Portal: portal.deckard.com/nm-lincoln-village_of_ruidoso-str-portal
Ordinance 2025-01: ruidoso-nm.gov/s/STR-Ordinance-2025-01.pdf
Code of Ordinances: library.municode.com/nm/ruidoso

State Resources:

CRS Registration: tap.state.nm.us/TAP/_/
Gross Receipts Tax Info: tax.newmexico.gov/Businesses/default.aspx
Building Codes: rld.nm.gov

Additional Resources:

NM Cannabis Control Division: rld.nm.gov/cannabis/
FEMA Flood Maps: msc.fema.gov/portal/home
Village Wildlife Safety Information: ruidoso-nm.gov/s/VOR_Wildlife_RackCard-1.pdf

Important Distinctions

Ruidoso Downs vs. Ruidoso: These are separate municipalities with different regulatory frameworks. Properties in each jurisdiction follow different rules, fees, and processes.

Regulatory Maturity: Ruidoso Village has more comprehensive and recently updated regulations (Ordinance 2025-01), while Ruidoso Downs maintains simpler business licensing requirements.

Geographic Considerations: Both areas are mountain communities with fire safety concerns and seasonal tourism patterns, but each has developed distinct approaches to STR regulation.

Investment Implications: Understanding which municipality your property falls under is crucial for compliance and operational success.

This guide is based on publicly available information as of 2025. Always verify current requirements with local authorities before making investment decisions.

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Ask the AI Advisor about Ruidoso Downs

Ruidoso Downs is a small city in Lincoln County, New Mexico, with a population of roughly 2,500 residents. Best known as the home of the celebrated Ruidoso Downs Racetrack, this quiet community sits in the Sacramento Mountains of southern New Mexico and serves as a gateway to the broader Lincoln Country region, including the adjacent village of Ruidoso. The nearest major city is Albuquerque, located about 150 miles to the northwest, and the surrounding landscape of pine-forested mountains and high desert gives the area a relaxed, recreational feel that draws visitors year-round.

The centerpiece of the town is the Ruidoso Downs Racetrack, a storied quarter-horse racing facility that has been operating since the mid-twentieth century. The track hosts the famous All American Futurity, one of the richest quarter-horse races in the world, and the racing season typically runs through the summer months. The track and its associated casino create a steady stream of visitors and give the small community a distinct identity separate from its better-known neighbor.

Just minutes from the racetrack, the Hubbard Museum of the American West celebrates the history and culture of the American frontier, with exhibits on Native American art, ranching, and Western expansion. Housed in a modern facility with permanent and rotating collections, the museum offers a quieter counterpoint to the racing crowds and provides travelers with a deeper sense of the region's heritage.

About a thirty-minute drive south of Ruidoso Downs lies the town of Lincoln, New Mexico, one of the most storied Old West towns in the United States. Now preserved as Lincoln Historic Site, this small settlement is where Billy the Kid became entangled in the long-running Lincoln County War of the late 1870s, and many of the original buildings still stand, including the old Lincoln County Courthouse. The site draws history enthusiasts from across the country and offers a tangible link to the frontier era of the American Southwest.

For travelers drawn to the outdoors, the surrounding Sacramento Mountains and the adjacent Mescalero Apache Reservation offer extensive recreation, with the Ski Apache ski area perched high above the desert just a short drive from town. In warmer months, hiking, fishing, and horseback riding take center stage, with Bonito Lake and the broader Lincoln National Forest providing additional options within a reasonable drive of the city.

Ruidoso Downs appeals to short-term rental owners because it combines a recognizable tourist draw in the racetrack with easy access to a variety of other attractions, from Western history sites to mountain recreation. The town's compact size, cooler mountain climate, and proximity to the larger village of Ruidoso make it a practical base for visitors who want a quieter stay without sacrificing access to the region's most popular destinations. With a steady calendar of races, seasonal festivals, and outdoor activities, the community maintains year-round appeal.