Is Eagle Nest, New Mexico Good for Airbnb Investment?

To start an Airbnb in Eagle Nest, New Mexico, begin by researching local regulations through Taos County (which governs Eagle Nest) and contact the county planning department at (575) 737-6300 to understand zoning requirements and short-term rental ordinances that may require business registration and lodgers tax permits. Obtain necessary permits including a New Mexico CRS (Combined Reporting System) number for tax collection, a possible conditional use permit from Taos County if required for your property zone, and ensure compliance with fire safety codes through the local fire marshal. Find a suitable property by searching Eagle Nest's vacation rental market, focusing on properties near Eagle Nest Lake or with mountain views that attract tourists, with typical investment ranges from $200,000-$500,000 for cabins or homes in the area. Furnish the property with rustic mountain decor appropriate for the outdoor recreation clientele, including essentials like linens, kitchen supplies, WiFi, heating systems suitable for high-altitude winters, and outdoor furniture for lake and mountain activities. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting Eagle Nest Lake access, fishing opportunities, and proximity to Angel Fire Resort (20 minutes away), setting competitive rates typically ranging $100-300 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services in nearby Angel Fire or Taos, implementing keyless entry systems due to the remote location, and maintaining relationships with local contractors for maintenance issues, while staying responsive to guests who often visit for fishing, hiking, and winter sports activities.

To identify profitable short-term rental properties in Eagle Nest, New Mexico, focus on locations within walking distance of Eagle Nest Lake or with mountain views, as this area attracts outdoor enthusiasts year-round for fishing, boating, hiking, and winter sports. Target properties with 2-4 bedrooms, outdoor spaces like decks or patios, fireplaces, and amenities that cater to families and groups seeking recreational activities. Analyze pricing by researching comparable Airbnb and VRBO listings in the $100-250 per night range, considering seasonal fluctuations with peak rates during summer fishing season (June-September) and winter sports months (December-February). Research competition by examining occupancy rates and guest reviews of existing STRs within a 5-mile radius, noting that Eagle Nest's limited inventory of approximately 20-30 active rentals creates opportunity for well-positioned properties. Utilize tools like AirDNA for market analytics, Mashvisor for investment analysis, and local resources including the Eagle Nest Chamber of Commerce, Taos County property records, and regional real estate agents familiar with the Angel Fire-Eagle Nest corridor to identify properties under $300,000 that can generate 15-25% annual returns through strategic positioning in this niche mountain recreation market.

To obtain an Airbnb/STR permit in Eagle Nest, New Mexico, you must first contact the Village of Eagle Nest Planning and Zoning Department at their municipal office located at 58 Therma Drive, Eagle Nest, NM 87718, or call (575) 377-3344 to initiate the application process. Required documents typically include a completed short-term rental permit application, proof of property ownership or lease agreement, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager if you're not residing within 50 miles, and a site plan showing parking availability for guests. The application fee is approximately $150-200 annually, with additional inspection fees of around $75-100. You must also register with the New Mexico Taxation and Revenue Department for gross receipts tax collection and obtain a CRS number, which costs $25. The timeline for approval is typically 30-45 days after submitting a complete application, pending zoning compliance review and safety inspection. Eagle Nest specific requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring the property meets fire safety codes with proper smoke and carbon monoxide detectors, limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 8 AM, and providing guests with emergency contact information and local regulations. Properties must also comply with septic system capacity limits and water usage restrictions common in the area.

Short-term rentals (STRs) are generally legal in Eagle Nest, New Mexico, as the small unincorporated community in Colfax County operates under New Mexico state regulations and Colfax County ordinances rather than municipal restrictions. The state of New Mexico allows STRs with basic requirements including gross receipts tax registration and lodgers tax collection, while Colfax County has minimal specific STR regulations beyond standard zoning compliance and health department requirements for rental properties. Eagle Nest, being primarily a tourist destination near Eagle Nest Lake and Angel Fire, has seen increased STR activity since 2020, with most properties operating legally under residential zoning that permits short-term rentals. There are no specific prohibited areas within Eagle Nest itself, though properties must comply with septic system regulations common in rural New Mexico and maintain proper insurance coverage. Recent changes include enhanced state tax collection requirements implemented in 2022 and increased scrutiny of septic compliance for rental properties, but no outright bans or severe restrictions have been enacted in the Eagle Nest area, making it relatively STR-friendly compared to larger New Mexico municipalities.

The best areas for Airbnb investment in Eagle Nest, New Mexico are the lakefront properties along Eagle Nest Lake, which attract fishing enthusiasts and water sports visitors year-round, particularly during the summer months when the lake hosts fishing tournaments and family vacations. The downtown historic district near Main Street offers proximity to local restaurants, shops, and the Eagle Nest Lake State Park, making it ideal for tourists seeking walkable access to amenities. Properties near the Enchanted Forest Cross Country Ski Area capture winter sports tourism, as visitors come for skiing, snowshoeing, and winter recreation from December through March. The areas close to Highway 64 and Highway 38 intersection provide convenient access for travelers heading to nearby attractions like the Vietnam Veterans Memorial State Park and serve as a strategic location for guests exploring the broader Moreno Valley region. Additionally, properties with mountain views toward the Sangre de Cristo Mountains command premium rates due to the scenic appeal that draws photographers, nature lovers, and those seeking peaceful retreats, while locations near the Eagle Nest Marina benefit from boating and fishing tourism during peak seasons.

Eagle Nest, New Mexico imposes a lodging tax of approximately 5-7% on short-term rental accommodations including Airbnbs, which is typically collected by the New Mexico Taxation and Revenue Department as part of the state's gross receipts tax system. Property owners must register for a CRS number (Combined Reporting System) and file monthly returns by the 25th of the following month, remitting taxes collected from guests. The state gross receipts tax rate in Eagle Nest is estimated at around 5.125%, with potential additional local municipal taxes bringing the total to approximately 6-8%. Airbnb may collect and remit these taxes automatically for hosts in some cases through their platform, but hosts remain ultimately responsible for compliance. There are generally no exemptions for stays under 30 days, though stays of 30 days or longer may be exempt from lodging taxes as they're considered long-term rentals rather than transient accommodations. Hosts must maintain detailed records of all bookings, tax collected, and payments made to the state, with penalties and interest applied for late filings or payments.

To start an Airbnb in Eagle Nest, New Mexico, expect total costs around $285,000-$315,000. Property purchase represents the largest expense at approximately $250,000 based on median home prices in this small mountain community near Angel Fire. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and outdoor gear appropriate for the area's recreational activities. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and potential HOA approvals. Insurance costs run $1,200-$2,000 annually for short-term rental coverage. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly in this rural area. First six months operating costs including utilities ($1,500), cleaning supplies and services ($1,800), maintenance reserves ($1,000), platform fees, and marketing total approximately $6,000-$8,000. Additional considerations include higher heating costs during winter months and potential septic system maintenance common in rural New Mexico properties.

Airbnb properties in Eagle Nest, New Mexico typically generate annual revenues between $15,000-$35,000 for seasonal cabins and lakefront properties, with peak summer months (June-August) accounting for 60-70% of bookings due to Eagle Nest Lake recreation activities. Operating expenses generally range from $8,000-$18,000 annually, including property management fees (15-25%), cleaning costs ($75-125 per turnover), utilities ($200-400 monthly), insurance ($1,200-2,500 yearly), and maintenance reserves, resulting in profit margins of 25-45% for well-managed properties. Success factors include proximity to Eagle Nest Lake (properties within 0.5 miles command 20-30% premium rates), winter accessibility for Ski Apache visitors, professional photography showcasing mountain views, and amenities like hot tubs, fireplaces, and fishing equipment storage. A typical 3-bedroom lakefront cabin purchased for $280,000 in 2022 generates approximately $28,000 in gross rental income with $16,000 in expenses, yielding a 4.3% cash-on-cash return, while properties further from the lake or requiring significant renovations often struggle to achieve profitability above 15% margins due to Eagle Nest's limited year-round tourism infrastructure and seasonal demand fluctuations.

Based on Eagle Nest, New Mexico market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location proximity to Eagle Nest Lake. Properties within walking distance of the lake or ski areas like Sipapu can achieve higher returns of 10-15% annually, while standard residential properties average 8-10%. Initial profitability usually occurs within 18-24 months, with full ROI recovery expected in 8-10 years. Seasonal demand peaks during summer fishing season (June-August) and winter skiing months (December-February) can drive occupancy rates of 65-75% for well-managed properties, with average daily rates ranging from $120-180 depending on property size and amenities. The limited inventory of short-term rentals in this small mountain community of approximately 300 residents creates favorable supply-demand dynamics, though investors should factor in seasonal fluctuations and the rural location's impact on year-round bookings.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Eagle Nest, New Mexico. Local real estate agents serving the Eagle Nest area include Century 21 High Country and Coldwell Banker Mountain Properties, both with experience in vacation rental investments in the Taos County region. National services like AirDNA provide market analytics and investment insights for the Eagle Nest market, while Mashvisor offers property analysis tools for short-term rental investments in northern New Mexico. RedAwning and Vacasa provide property management services for Airbnb investors in the area, and companies like BiggerPockets connect investors with local professionals experienced in vacation rental properties. Local property management companies such as Taos Vacation Rentals and Angel Fire Resort Rentals also assist investors with acquiring and managing profitable Airbnb properties in the Eagle Nest market, leveraging the area's proximity to outdoor recreation and seasonal tourism demand.