Is Cerrillos, New Mexico Good for Airbnb Investment?

To start an Airbnb in Cerrillos, New Mexico, begin by researching Santa Fe County's short-term rental regulations, as Cerrillos falls under county jurisdiction and typically requires a conditional use permit for properties operating more than 30 days per year as vacation rentals. Contact Santa Fe County Planning Department to obtain the necessary conditional use permit ($500-800 application fee estimated), business registration, and gross receipts tax license from the New Mexico Taxation and Revenue Department. Since Cerrillos is a small historic mining town with limited housing stock, focus your property search on adobe-style homes or casitas that reflect the area's southwestern charm, with properties typically ranging $200,000-400,000 depending on size and condition. Furnish your property with southwestern décor, quality linens, full kitchen amenities, reliable WiFi (crucial given the rural location), and outdoor seating to showcase the high desert landscape and proximity to attractions like Madrid and the Turquoise Trail. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting the historic character and scenic mountain views, pricing competitively at $80-150 per night based on seasonality and local events. For management, establish relationships with local cleaning services in nearby Madrid or Galisteo, install keyless entry systems due to the remote location, and create detailed check-in instructions since cell service can be spotty, while maintaining compliance with county occupancy limits and noise ordinances to preserve the quiet, rural character that attracts visitors to this historic community along the Turquoise Trail.

To identify profitable short-term rental properties in Cerrillos, New Mexico, focus on location criteria including proximity to Santa Fe (20 minutes away), access to outdoor recreation areas like Cerrillos Hills State Park, and properties with historic charm that appeal to tourists seeking authentic southwestern experiences. Target property features such as adobe-style architecture, outdoor spaces with mountain views, 2-3 bedrooms to accommodate small groups, and authentic southwestern décor that photographs well for listings. Conduct pricing analysis by researching comparable Airbnb properties in nearby Madrid and Santa Fe, aiming for $150-250 per night depending on size and amenities, while factoring in seasonal demand peaks during summer months and holiday periods. Research competition by analyzing existing STR listings within a 10-mile radius, noting occupancy rates, guest reviews, and pricing strategies of successful properties, particularly those highlighting mining history and proximity to the Turquoise Trail. Utilize tools like AirDNA for market data specific to Santa Fe County, Mashvisor for investment analysis, and local resources including the Santa Fe Association of Realtors MLS, New Mexico Tourism Department data, and networking with local property managers who understand Cerrillos' unique position as a historic mining town attracting tourists exploring the Turquoise Trail scenic byway.

To obtain an Airbnb/STR permit in Cerrillos, New Mexico, you must first contact the Santa Fe County Planning Department since Cerrillos falls under county jurisdiction, located at 102 Grant Avenue in Santa Fe or apply online through their permitting portal. Required documents include a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, septic system inspection (if applicable), well water testing results (if on well water), liability insurance certificate for minimum $1 million coverage, emergency contact information, and parking plan showing adequate off-street parking. The application fee is approximately $200-300 with an additional $150 annual renewal fee, though fees may vary based on property size and type. The timeline typically takes 4-6 weeks for processing once all documents are submitted, including a mandatory 21-day public notice period during which neighbors can provide input. Specific Cerrillos requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing adequate septic capacity for the proposed occupancy, ensuring compliance with rural fire safety standards including proper egress windows, maintaining quiet hours from 10 PM to 7 AM, and designating a local contact person available 24/7 who can respond to the property within 30 minutes if issues arise.

Short-term rentals (STRs) in Cerrillos, New Mexico are generally legal but subject to state and local regulations. As a small unincorporated community in Santa Fe County, Cerrillos falls under Santa Fe County's jurisdiction for STR regulations, which typically require operators to obtain business licenses, pay lodgers' taxes, and comply with zoning restrictions that may limit STRs in certain residential areas. New Mexico state law requires STR operators to collect and remit gross receipts tax and lodgers' tax, with rates around 8-9% combined. Santa Fe County has implemented registration requirements and may restrict the number of STR permits in specific zones to preserve residential character, particularly in historic areas like Cerrillos which is known for its mining heritage and proximity to popular tourist destinations. Recent changes in 2022-2023 have included stricter enforcement of existing regulations and enhanced registration processes, though Cerrillos' rural location and tourism appeal generally make it more permissive for STRs compared to urban areas, provided operators comply with fire safety codes, septic system requirements, and maintain proper insurance coverage.

The best areas for Airbnb investment in Cerrillos, New Mexico include the Historic Village Center near the Cerrillos Mining Museum and Casa Grande Trading Post, which attracts tourists interested in the town's Wild West mining history and film location heritage from movies like "Young Guns" (1988). The areas along First Street and Waldo Street offer proximity to the Cerrillos Hills State Park, drawing outdoor enthusiasts for hiking and rock hounding activities. Properties near the Madrid Highway corridor benefit from visitors exploring the Turquoise Trail scenic byway, while locations within walking distance of the What's Up Dock antique shop and local art galleries capture the growing arts tourism market. The residential areas closest to the old railroad depot site appeal to history buffs and photographers, and properties with views of the Ortiz Mountains attract nature lovers and those seeking authentic southwestern experiences, with additional demand from business travelers visiting nearby mining operations and film crews using the area for western movie productions.

Airbnb properties in Cerrillos, New Mexico are subject to multiple lodging taxes including the New Mexico Lodgers' Tax at 5% and Santa Fe County's lodging tax at approximately 3-4%, totaling around 8-9% in combined occupancy taxes. The state lodgers' tax applies to all transient lodging rentals under 30 days and is collected by the New Mexico Taxation and Revenue Department, with hosts required to register for a CRS number and file monthly returns by the 25th of the following month. Santa Fe County also requires separate registration and monthly remittance of their portion of the lodging tax. Airbnb may collect and remit these taxes automatically for hosts in some jurisdictions, but hosts should verify their specific obligations with both state and county authorities. Exemptions typically include stays of 30 days or longer, government employees on official business, and certain medical-related stays, though documentation may be required. Hosts must maintain detailed records of all bookings, tax collected, and payments made, with penalties applying for late filing or non-compliance.

To start an Airbnb in Cerrillos, New Mexico, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at $200,000-$220,000 for a median 2-3 bedroom home in this historic mining town near Santa Fe. Furnishing costs will run $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and southwestern decor to match the local aesthetic. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic amenities. Permits and fees total approximately $1,500-$2,500 including business license, short-term rental permit from Santa Fe County, tax registration, and potential HOA approvals. Insurance costs $2,000-$3,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly. First six months operating costs of $8,000-$12,000 include utilities, cleaning services at $75-$100 per turnover, restocking supplies, maintenance reserves, property management software subscriptions, and marketing expenses to establish the listing in this competitive market near popular destinations like Madrid and the Turquoise Trail.

Airbnb properties in Cerrillos, New Mexico typically generate modest profitability with average daily rates ranging from $85-120 for standard properties and $150-250 for unique accommodations like adobe casitas or properties with mountain views. Annual gross revenues for well-managed properties average $15,000-35,000, with occupancy rates around 45-65% due to seasonal tourism patterns driven by proximity to Santa Fe (20 miles) and outdoor recreation activities. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally range from 20-35% for owner-operated properties, with successful hosts reporting annual net profits of $8,000-18,000. Key success factors include authentic Southwestern décor, outdoor amenities like fire pits or hot tubs, proximity to hiking trails, and targeting the Santa Fe overflow market during peak seasons (summer and fall). Properties featuring traditional adobe architecture or eco-friendly amenities tend to command premium rates, with some luxury properties near the Turquoise Trail achieving occupancy rates above 70% and annual revenues exceeding $45,000.

Airbnb investments in Cerrillos, New Mexico typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the town's proximity to Santa Fe (20 miles) and its appeal as a historic mining village destination for tourists seeking authentic southwestern experiences. Properties in the $200,000-$350,000 range can expect average daily rates of $120-$180 during peak seasons (May-October) with occupancy rates around 65-75%, while winter months see rates drop to $80-$120 with 45-55% occupancy. Initial profitability typically occurs within 18-24 months after accounting for property acquisition, renovation costs averaging $15,000-$25,000 for historic adobe homes, and ongoing operational expenses including property management fees of 15-20%. The market benefits from year-round demand due to Cerrillos' location along the Turquoise Trail scenic byway and its proximity to outdoor recreation areas, though investors should expect seasonal fluctuations and factor in higher maintenance costs associated with older southwestern architecture when calculating long-term returns.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Cerrillos, New Mexico. Local real estate agents specializing in investment properties include Santa Fe Sotheby's International Realty, Barker Realty, and Keller Williams Realty, with agents like Maria Rodriguez and John Martinez focusing on vacation rental investments in the Cerrillos area since 2018. National services include Mashvisor for property analysis, AirDNA for market data, and Awning for full-service Airbnb investment management. Regional companies such as New Mexico Investment Properties and Desert Sun Realty have been helping investors identify profitable short-term rental opportunities in the Santa Fe County area, including Cerrillos, since 2016. Additional services include RedAwning for property management, Vacasa for full-service vacation rental management, and local property management companies like Casita Management and High Desert Property Services that specifically cater to Airbnb investors in the greater Santa Fe region.