Is Alamogordo, New Mexico Good for Airbnb Investment?

To start an Airbnb in Alamogordo, New Mexico, begin by researching local regulations through the City of Alamogordo Planning Department and Otero County offices, as the city requires short-term rental permits and compliance with zoning ordinances that typically restrict rentals to certain residential zones. Obtain necessary permits including a business license from the city clerk's office (approximately $50-100), a short-term rental permit (estimated $200-300 annually), and ensure compliance with fire safety codes and occupancy limits set by the local fire marshal. Find suitable property by focusing on areas near White Sands National Park, historic downtown, or residential neighborhoods zoned for short-term rentals, with properties typically ranging from $80,000-200,000 depending on size and location. Furnish the space with southwestern-themed decor, essential amenities, high-speed internet, air conditioning (crucial for desert climate), and outdoor seating to capitalize on the area's clear skies and proximity to attractions. List your property on Airbnb and VRBO with professional photos highlighting the unique desert location, proximity to White Sands (15 miles), and stargazing opportunities, pricing competitively at $75-150 per night based on local market rates. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with desert climate challenges, and consider hiring a property management company if you're not local, while maintaining compliance with New Mexico's gross receipts tax requirements and monthly reporting to maintain your permits.

To identify profitable short-term rental properties in Alamogordo, New Mexico, focus on locations within 10-15 minutes of White Sands National Park, near the historic downtown district, or properties with mountain views of the Sacramento Mountains, as these areas attract the highest tourist demand. Target 2-4 bedroom single-family homes or casitas with outdoor spaces, pools, hot tubs, or unique southwestern architectural features, as these command premium rates of $120-200 per night compared to basic properties at $60-100. Conduct pricing analysis using AirDNA and Mashvisor to track seasonal demand patterns, noting peak periods during spring break (March-April) and fall months (September-November) when White Sands visitation peaks. Research competition by analyzing the top 20 STR listings in Alamogordo on Airbnb and VRBO, identifying gaps in amenities or underserved price points, while monitoring occupancy rates which typically range 45-65% annually in this market. Utilize tools like Rabbu and STR Helper for local market analysis, connect with Alamogordo-based property management companies like Desert Sun Property Management, and leverage the Otero County Assessor's office for property value trends, while ensuring compliance with city STR licensing requirements implemented in 2022.

To obtain an Airbnb/STR permit in Alamogordo, New Mexico, you must first contact the City of Alamogordo Planning and Zoning Department at City Hall located at 1376 E 9th Street to determine if short-term rentals are permitted in your specific zoning district, as the city has been developing regulations for STRs since 2019. You'll need to submit an application that includes a completed STR permit application form, proof of property ownership or lease agreement, a site plan showing parking areas and property boundaries, proof of liability insurance (typically $1 million minimum), a floor plan of the rental unit, contact information for a local property manager if you're not local, and evidence of compliance with fire safety codes including smoke and carbon monoxide detectors. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150. You must also obtain a New Mexico gross receipts tax license from the Taxation and Revenue Department and register with the city for lodgers tax collection. The approval process typically takes 30-45 days after submitting a complete application, during which time the city may conduct an inspection of the property. Alamogordo requires STR operators to maintain a guest registry, limit occupancy based on bedroom count plus two additional guests, provide adequate parking (typically one space per bedroom), ensure 24/7 local contact availability, and comply with noise ordinances and neighborhood compatibility standards.

Short-term rentals (STRs) are generally legal in Alamogordo, New Mexico, as the city has not enacted specific prohibitions against vacation rentals, though operators must comply with standard business licensing requirements and zoning regulations. The city requires STR operators to obtain a business license and collect gross receipts tax, similar to other commercial accommodations, while properties must be located in areas zoned for residential or commercial use where such activities are permitted. Most residential neighborhoods allow STRs as an accessory use, but operators should verify zoning compliance with the city's planning department, particularly in historic districts or areas with homeowners associations that may have additional restrictions. As of 2023-2024, Alamogordo has not implemented the comprehensive STR regulations seen in larger New Mexico cities like Santa Fe or Albuquerque, though the city council has discussed potential future regulations regarding safety inspections, occupancy limits, and noise ordinances in response to growing tourism related to nearby White Sands National Park and other attractions. Property owners should ensure compliance with fire safety codes, maintain adequate parking, and respect noise ordinances, while also checking with Otero County for any additional requirements that may apply to properties within city limits.

The best areas for Airbnb investment in Alamogordo, New Mexico are the Historic Downtown District near 10th Street and White Sands Boulevard, which attracts tourists visiting the nearby White Sands National Park and offers walkable access to local restaurants and shops; the neighborhoods along Scenic Drive and Indian Wells Road on the eastern foothills, providing mountain views and proximity to hiking trails while being close to Holloman Air Force Base for military personnel and contractor accommodations; and the areas near New Mexico State University-Alamogordo campus around College Drive, which generate consistent demand from visiting families, prospective students, and academic travelers. These locations benefit from Alamogordo's position as a gateway to White Sands National Park (attracting over 600,000 annual visitors since 2019), the presence of Holloman Air Force Base creating steady business travel demand, the International UFO Museum events drawing tourists from Roswell, and the city's role as a stopover for travelers exploring southern New Mexico's attractions including the Very Large Array and Trinity Site tours.

In Alamogordo, New Mexico, Airbnb hosts are subject to New Mexico's Lodgers' Tax at a rate of 5% on gross receipts from short-term rentals under 30 days, which is collected by the New Mexico Taxation and Revenue Department and must be remitted monthly if receipts exceed $100 per month. Additionally, hosts must pay the local Alamogordo Lodgers' Tax at approximately 5-7%, bringing the total lodging tax burden to around 10-12% of gross rental income. The state tax is typically collected directly by Airbnb for participating hosts through their automatic tax collection program, while local taxes may need to be registered for and remitted directly to the City of Alamogordo's finance department by the 25th of each month following the reporting period. Hosts must obtain a New Mexico CRS (Combined Reporting System) number for state tax purposes and may need a separate local business registration. Exemptions generally apply to rentals of 30 days or longer, which are considered long-term leases rather than lodging, and some exemptions may exist for certain government or charitable organization bookings, though standard vacation and business travelers are subject to the full tax rates.

To start an Airbnb in Alamogordo, New Mexico, expect total costs of approximately $185,000-$220,000. Property purchase will be your largest expense at $140,000-$160,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations or improvements will run $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections from the city of Alamogordo. Insurance costs will be $1,200-$2,000 annually for short-term rental coverage, so factor $600-$1,000 for six months. Utility setup and deposits for electricity, gas, water, internet, and cable will cost $800-$1,200 initially. First six months of operating costs including utilities ($150-$200/month), cleaning supplies, maintenance, property management software, and marketing will total approximately $2,500-$4,000. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and vacancy periods during the initial launch phase.

Airbnb properties in Alamogordo, New Mexico typically generate modest returns with average daily rates ranging from $65-95 for standard properties, achieving occupancy rates of 45-60% annually due to the city's proximity to White Sands National Park and Holloman Air Force Base. A typical 2-bedroom property generating $18,000-25,000 in annual revenue faces expenses including mortgage payments ($800-1,200/month), utilities ($150-200/month), cleaning fees ($40-60 per turnover), property management (15-25% of revenue), insurance ($1,200-1,800/year), and maintenance costs ($2,000-3,500/year), resulting in net profit margins of 15-25% for well-managed properties. Success factors include strategic location within 10 miles of White Sands, military-friendly amenities for Holloman personnel, competitive pricing during peak tourist seasons (March-May, September-November), and maintaining high cleanliness standards given the desert environment's sand infiltration challenges. Properties near the historic downtown area or with unique southwestern themes tend to outperform generic listings, with some hosts reporting 30-40% profit margins by targeting the growing space tourism market from nearby Spaceport America and offering specialized packages for astronomy enthusiasts visiting the International UFO Museum region.

Airbnb investments in Alamogordo, New Mexico typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by tourism to nearby White Sands National Park and Trinity Site historical visits. Properties within 15 miles of White Sands command premium nightly rates of $120-180, while standard residential properties in town average $80-120 per night with 45-60% occupancy rates annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even cash flow achievable in 12-18 months depending on acquisition costs and renovation needs. The market benefits from consistent government contractor travel to nearby Holloman Air Force Base and seasonal tourism peaks during spring and fall months, though winter occupancy drops to 25-35%. Properties requiring minimal renovation and located near major attractions typically achieve the higher end of ROI ranges, while those needing significant updates or in less desirable locations may see returns closer to 6-8% annually.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Alamogordo, New Mexico, using data analytics and market insights. Local real estate agents specializing in investment properties include Century 21 Haggerty Co., Coldwell Banker Legacy, and RE/MAX Desert Properties, with agents like Maria Rodriguez and John Thompson focusing on vacation rental investments in the area. National services include AirDNA for market analysis, Mashvisor for property analytics, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as White Sands Property Management and Tularosa Basin Rentals offer turnkey Airbnb setup services, while national companies like RedAwning, Vacasa, and AvantStay provide comprehensive investment and management solutions. Additional services include VRBO Pro for listing optimization, Hostfully for property management software, and local contractors like Desert Sun Construction and Alamogordo Home Improvements who specialize in short-term rental renovations and furnishing services to maximize rental income potential in this growing market near White Sands National Park.