Is Clovis, New Mexico Good for Airbnb Investment?

To start an Airbnb in Clovis, New Mexico, begin by researching local regulations through the City of Clovis Planning Department, as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow STRs in residential areas with proper permits. Contact the City Clerk's office at 321 N. Connelly Street to apply for a business license ($25-50 annually) and ensure your property meets fire safety codes and building requirements. Find a suitable property in desirable neighborhoods like the historic downtown area or near Cannon Air Force Base, considering proximity to attractions like the Norman Petty Recording Studios. Purchase essential furnishings including quality mattresses, linens, kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a complete setup. Create your listing on Airbnb with professional photos highlighting unique features, set competitive rates based on local market research (typically $60-120/night in Clovis), and write compelling descriptions mentioning nearby attractions and military base access. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and consider hiring local cleaning services or property management companies if needed, while keeping detailed records for tax purposes and maintaining compliance with New Mexico's gross receipts tax requirements.

To identify profitable short-term rental properties in Clovis, New Mexico, focus on locations near Cannon Air Force Base (primary demand driver), downtown historic district, and proximity to Eastern New Mexico University-Roswell branch campus activities. Target 2-4 bedroom single-family homes or duplexes built after 1980 with dedicated parking, full kitchens, reliable internet, and outdoor spaces, as military families and contractors often seek temporary housing for 30-90 day stays. Analyze pricing using AirDNA and Mashvisor to benchmark against the limited STR supply, typically ranging $80-150/night, while researching competition through Airbnb, VRBO, and local Facebook housing groups where military personnel frequently post housing needs. Utilize Rentometer for long-term rental comparisons, contact Clovis Chamber of Commerce for occupancy trends, monitor Cannon AFB deployment schedules through military community forums, and leverage BiggerPockets for local investor insights. Focus on properties under $200,000 that can achieve 60%+ occupancy rates primarily serving military-related guests, contractors, and occasional family visitors, while ensuring compliance with city zoning regulations and HOA restrictions in residential areas.

To obtain an Airbnb/STR permit in Clovis, New Mexico, you must first contact the Clovis Planning and Zoning Department at City Hall located at 321 N. Connelly Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires a conditional use permit for STRs in most residential areas. Submit an application for a conditional use permit along with a detailed site plan, proof of property ownership or authorization letter from owner, liability insurance certificate showing minimum $1 million coverage, floor plan of the property, and a $350 application fee. Additionally, you'll need to obtain a business license from the City Clerk's office for approximately $25 annually and register for gross receipts tax with the New Mexico Taxation and Revenue Department. The conditional use permit process typically takes 30-45 days and requires a public hearing before the Planning and Zoning Commission, where neighboring property owners within 100 feet will be notified. Clovis requires STR operators to maintain a local contact person available 24/7, limit occupancy to two people per bedroom plus two additional guests, provide adequate parking spaces, and ensure compliance with all fire safety codes and building regulations. Once approved, you must display your permit number in all advertising and renew your business license annually while maintaining current insurance and tax registrations.

Short-term rentals (STRs) are generally legal in Clovis, 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 New Mexico state regulations which require STR operators to register with the state taxation department and collect applicable taxes. While there are no specific prohibited areas designated by municipal code, properties must comply with existing zoning laws which may limit STR operations in certain residential districts. Recent years have seen increased discussion at city council meetings about potential regulation similar to other New Mexico municipalities like Santa Fe and Albuquerque, but no major restrictive ordinances have been enacted. Property owners should verify current zoning compliance and obtain necessary business licenses, as enforcement of existing regulations has become more active since 2022 following statewide trends toward STR oversight.

The most promising Airbnb investment areas in Clovis, New Mexico include the Historic Downtown District near Main Street, which attracts visitors interested in Route 66 heritage tourism and local cultural events, and the neighborhoods surrounding Cannon Air Force Base on the southeast side of town, which generate consistent demand from military families, contractors, and visiting personnel. The area near the Clovis Community College campus offers potential for academic-related stays including visiting faculty, prospective students, and families attending graduation ceremonies. Properties near the Norman Petty Studios area capitalize on music tourism, as visitors come to see where Buddy Holly, Roy Orbison, and other famous musicians recorded their hits in the 1950s and 1960s. The residential areas along 21st Street and near Hillcrest Park provide good investment opportunities due to their proximity to medical facilities and the courthouse, attracting business travelers, medical professionals, and people attending legal proceedings, while the neighborhoods near the Clovis Municipal Airport serve corporate travelers and agricultural business visitors to this farming community.

Airbnb properties in Clovis, New Mexico are subject to New Mexico's Lodgers' Tax at a state rate of 5%, which applies to gross receipts from lodging rentals for periods of less than 30 consecutive days. The City of Clovis imposes an additional municipal lodgers' tax of 6%, bringing the total lodgers' tax rate to 11%. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the New Mexico Taxation and Revenue Department on a monthly basis for properties enrolled in their voluntary collection program. Property owners not using Airbnb's collection service must register with the state, collect taxes from guests, and file monthly returns by the 25th of the following month, remitting payments to both state and local tax authorities. Rentals of 30 days or longer are generally exempt from lodgers' taxes, as are rentals to permanent residents, and certain properties may qualify for exemptions if they house displaced persons due to emergencies or if the rental income falls below minimum thresholds established by local ordinances.

To start an Airbnb in Clovis, New Mexico, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in New Mexico generally cost $500-$1,500 depending on local regulations and business license requirements. Insurance premiums for short-term rental coverage run $1,200-$2,400 annually, with the first year paid upfront. Utility deposits and connections typically cost $300-$600 initially. First six months of operating costs including utilities ($150-$250/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees (3% of bookings), and marketing expenses total approximately $3,000-$5,000, assuming moderate occupancy rates of 40-60% during the initial period.

Airbnb properties in Clovis, New Mexico typically generate modest returns with average daily rates ranging from $65-85 due to the city's smaller market size and limited tourist attractions, though properties near Cannon Air Force Base command premium rates of $90-120 per night with occupancy rates of 60-70% annually. Revenue for a typical 2-3 bedroom property averages $18,000-28,000 annually, while expenses including mortgage, utilities, cleaning, maintenance, insurance, and Airbnb fees typically consume 65-75% of gross revenue, leaving net profit margins of 25-35% or roughly $4,500-9,800 per year. Success factors include proximity to the air base for military family accommodations, competitive pricing below hotel rates at the Hampton Inn or Holiday Inn Express, professional photography, and maintaining high cleanliness standards, with properties within 5 miles of Cannon AFB showing 15-20% higher occupancy rates than those in downtown Clovis. The market benefits from steady military demand and occasional overflow from Portales events, but faces challenges from limited tourism infrastructure and competition from established hotels, making careful property selection and efficient management crucial for profitability in this secondary market.

Airbnb investments in Clovis, New Mexico typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to Cannon Air Force Base which creates consistent demand from military personnel and their families. Properties near the base or downtown area can expect to reach profitability within 18-24 months, with average daily rates of $75-$95 and occupancy rates of 65-75% annually. The market benefits from limited hotel inventory and steady military rotations, though investors should account for seasonal fluctuations during summer PCS (Permanent Change of Station) moves when demand peaks. Initial investment recovery typically occurs within 2-3 years for well-positioned properties, with gross rental yields averaging 10-14% before expenses, making Clovis a moderately attractive market for short-term rental investments despite its smaller size compared to major New Mexico tourism destinations like Santa Fe or Albuquerque.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Clovis, New Mexico. In the local Clovis market, Century 21 Haggerty Co. and Coldwell Banker Legacy have agents experienced with investment properties, while RE/MAX First has handled vacation rental acquisitions in the area since 2018. National services like BiggerPockets connects investors with local professionals, and AirDNA provides market analytics for the Clovis STR market. Mashvisor offers investment property analysis tools that cover the New Mexico market, while Awning and RedAwning provide end-to-end Airbnb investment services including property management. Local property management companies like High Plains Property Management and Eastern New Mexico Property Services have expanded into short-term rental management since 2020. Real estate agents such as those at Berkshire Hathaway HomeServices and Keller Williams in nearby Portales also serve Clovis investors seeking vacation rental properties.