Is Aztec, New Mexico Good for Airbnb Investment?

To start an Airbnb in Aztec, New Mexico, begin by researching local regulations through the City of Aztec Planning Department and San Juan County offices, as short-term rentals typically require a business license and may need conditional use permits in residential zones. Contact the New Mexico Taxation and Revenue Department to obtain a gross receipts tax license (CRS number) since you'll need to collect state and local lodgers' taxes, which in Aztec is approximately 8.3125% combined. Find a suitable property by working with local real estate agents familiar with Aztec's market, focusing on areas near the Animas River or close to attractions like the Aztec Ruins National Monument, with properties typically ranging from $150,000-$300,000 for suitable homes. Furnish the space with durable, comfortable furniture from retailers in nearby Farmington like Ashley HomeStore or online suppliers, ensuring you include essentials like quality bedding, kitchen appliances, WiFi, and local guidebooks highlighting Four Corners region attractions. Create your Airbnb listing with professional photos showcasing the property's proximity to outdoor recreation and archaeological sites, setting competitive rates around $80-120 per night based on local market analysis. For ongoing management, establish relationships with local cleaning services in Aztec or Farmington, create a system for key exchange or lockbox access, maintain communication with guests about local recommendations, and ensure compliance with ongoing tax reporting requirements to both state and local authorities while monitoring any changes to municipal short-term rental ordinances.

To identify profitable short-term rental properties in Aztec, New Mexico, focus on locations within 15-20 minutes of major attractions like the Aztec Ruins National Monument and proximity to the Animas River for outdoor recreation access, while targeting neighborhoods with easy highway access for tourists traveling between Colorado ski areas and southwestern destinations. Seek properties with 2-4 bedrooms, outdoor spaces like patios or fire pits that capitalize on the high desert climate, updated kitchens and bathrooms, reliable internet for remote workers, and authentic southwestern architectural features that appeal to cultural tourists. Conduct pricing analysis using AirDNA and Mashvisor to track seasonal demand patterns, with peak periods likely during spring/fall when weather is optimal for ruins exploration and river activities, targeting average daily rates of $80-150 depending on property size and amenities. Research competition by analyzing existing STR listings within 10 miles, identifying gaps in amenities or property types, and studying occupancy rates of similar properties through tools like AllTheRooms and direct Airbnb/VRBO market research. Utilize resources specific to the Four Corners region including San Juan County tourism data, coordinate with local property management companies familiar with the area's seasonal tourism patterns, leverage New Mexico's STR-friendly regulations, and consider properties that can capture overflow demand from busier markets like Durango, Colorado, approximately 45 minutes away.

To obtain an Airbnb/STR permit in Aztec, New Mexico, you must first contact the Aztec City Hall at 201 W Chaco Street or call (505) 334-7648 to obtain a business license application and short-term rental permit application. Required documents typically include a completed business license application, property deed or lease agreement, floor plan of the rental property, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager if you're not local, and a signed affidavit acknowledging compliance with city ordinances. The business license fee is approximately $50-75 annually, with an additional STR permit fee of around $100-150 per year. You must also pay applicable gross receipts tax registration fees of about $25. Submit all documents to the City Clerk's office along with payment, and the approval process typically takes 2-4 weeks for review. Aztec requires STR properties to maintain adequate parking (minimum 2 spaces), limit occupancy to 2 people per bedroom plus 2 additional guests, display the permit number in all advertisements, maintain a guest registry, and ensure a local contact person is available 24/7 for noise or emergency issues. Properties must also comply with all zoning regulations, fire safety codes, and cannot operate in areas zoned exclusively residential without proper conditional use permits.

Short-term rentals (STRs) are generally legal in Aztec, New Mexico, as the city does not have comprehensive municipal ordinances specifically prohibiting them as of 2023. However, STR operators must comply with standard business licensing requirements, zoning regulations that may restrict commercial activities in residential areas, and state tax obligations including gross receipts tax collection. The city follows San Juan County zoning guidelines in unincorporated areas, and properties must meet basic safety and occupancy standards. While there are no specific prohibited zones designated solely for STR restrictions, operators should verify compliance with residential zoning limitations and homeowners association rules where applicable. Recent legal changes have been minimal at the municipal level, though New Mexico has strengthened state-level tax enforcement for short-term rental platforms like Airbnb and VRBO since 2021, requiring hosts to register for tax purposes and remit gross receipts taxes on rental income.

The best areas for Airbnb investment in Aztec, New Mexico are downtown Aztec near Main Avenue for its proximity to the Aztec Museum and Pioneer Village which attracts history tourists year-round, the residential areas near Aztec High School and San Juan College branch campus that cater to visiting families and educational travelers, and properties within walking distance of the Animas River for outdoor enthusiasts seeking fishing and recreational activities. The area near Highway 550 corridor offers convenience for business travelers working in the oil and gas industry that's prevalent in the Four Corners region, while neighborhoods close to Aztec Ruins National Monument (though technically just outside city limits) benefit from the steady stream of archaeological tourists and visitors exploring ancient Puebloan sites. Properties near the civic center and library district attract visitors attending local events, conferences, and cultural activities, and the residential zones near Riverside Park appeal to families visiting for youth sports tournaments and outdoor recreation, with these areas collectively benefiting from Aztec's position as a gateway to Mesa Verde National Park and other Four Corners attractions.

In Aztec, New Mexico, Airbnb hosts are subject to the New Mexico Lodgers' Tax at a rate of 5% on gross receipts from lodging rentals, 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 standard New Mexico Gross Receipts Tax at approximately 5.125% (combining state and local rates) on their rental income. San Juan County, where Aztec is located, may impose an additional lodgers' tax of up to 3%, bringing the total lodging tax burden to potentially 8% plus gross receipts tax. Airbnb typically collects and remits the state lodgers' tax automatically for hosts, but hosts remain responsible for registering with the state, obtaining the necessary tax identification numbers, and ensuring compliance with local county taxes and gross receipts tax obligations. Exemptions generally apply only to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may qualify for exemptions under specific circumstances.

To start an Airbnb in Aztec, New Mexico, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the Four Corners region. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in San Juan County include business licenses ($100-$300), potential zoning permits ($200-$500), and tax registration ($50-$150). Insurance costs run $1,200-$2,400 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections for electricity, gas, water, internet, and cable total $800-$1,500. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), marketing ($150/month), and platform fees (3% of bookings estimated at $300/month) total approximately $8,100. Additional considerations include potential HOA fees, property management software subscriptions, and emergency repair funds.

Airbnb properties in Aztec, New Mexico typically generate modest returns with average daily rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,600 for well-managed properties with 60-70% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($100-200 monthly), and maintenance ($200-400 monthly) typically consume 45-60% of gross revenue. Properties near the Animas River or with unique southwestern charm achieve higher occupancy rates, with some hosts reporting annual profits of $15,000-25,000 on properties valued at $200,000-350,000, yielding profit margins of 15-25%. Success factors include proximity to outdoor recreation areas like the San Juan River, competitive pricing during peak seasons (spring and fall), professional photography, and catering to oil and gas workers who provide steady mid-week bookings. A typical 3-bedroom property purchased for $280,000 in 2022 generated approximately $32,000 in gross revenue with $18,000 in expenses, netting $14,000 annually, though market saturation and seasonal fluctuations present ongoing challenges for maintaining consistent profitability.

Airbnb investments in Aztec, New Mexico typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by outdoor recreation tourism visiting nearby attractions like the Aztec Ruins National Monument and proximity to Mesa Verde National Park. Properties in this market generally achieve profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 45-60% annually. The relatively low property acquisition costs ($180,000-280,000 for suitable investment properties) combined with moderate operational expenses and steady demand from tourists exploring the Four Corners region contribute to these returns, though seasonal fluctuations occur with peak performance during spring through fall months when outdoor activities and archaeological site visits are most popular.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Aztec, New Mexico. In the Four Corners region, Keller Williams Four Corners and Century 21 SoWesCo have agents experienced with investment properties who understand the local tourism patterns around Mesa Verde National Park and Chaco Culture National Historical Park. RE/MAX of Farmington serves the broader San Juan County area and has agents familiar with Airbnb investment opportunities. National services like Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools for the Aztec market. Roofstock and Awning offer end-to-end investment property services including market analysis and property management for short-term rentals. Local property management companies such as Four Corners Property Management and Desert Sage Property Management can assist with ongoing Airbnb operations. BiggerPockets marketplace and forums connect investors with local professionals, while LoopNet and Crexi list commercial and investment properties in the area. Vacasa and RedAwning provide property management services specifically for vacation rentals, helping investors maximize their returns in this growing southwestern New Mexico market that benefits from proximity to major archaeological sites and outdoor recreation areas.