Is Los Alamos, New Mexico Good for Airbnb Investment?

To start an Airbnb in Los Alamos, New Mexico, begin by researching local regulations through the Los Alamos County Planning Department, as the area requires short-term rental permits and compliance with zoning ordinances that typically restrict rentals to residential zones with specific occupancy limits. Obtain necessary permits including a business license from Los Alamos County, a lodgers tax permit from the New Mexico Taxation and Revenue Department, and ensure compliance with fire safety codes which may require smoke detectors, carbon monoxide detectors, and fire extinguishers due to the area's wildfire risk. Find suitable property by focusing on areas near Los Alamos National Laboratory, Bandelier National Monument, or downtown Los Alamos, considering that properties should be zoned for short-term rentals and have adequate parking since many visitors are scientists, tourists, or outdoor enthusiasts. Furnish the space with comfortable, durable furniture emphasizing the area's scientific heritage and outdoor recreation opportunities, including hiking gear storage, work-friendly spaces for visiting researchers, and amenities like high-speed internet essential for the tech-savvy demographic. List your property on Airbnb and other platforms highlighting proximity to LANL (approximately 2 miles from most residential areas), Bandelier National Monument (12 miles), and outdoor activities, with competitive pricing typically ranging $80-150 per night based on 2023 market rates. Manage the property by establishing relationships with local cleaning services, maintenance providers familiar with Los Alamos' unique high-altitude environment (7,300 feet elevation), and consider the seasonal demand fluctuations with peak periods during summer months and scientific conferences, while maintaining compliance with the 14% combined state and local lodgers tax rate.

To identify profitable short-term rental properties in Los Alamos, New Mexico, focus on locations within 2-3 miles of Los Alamos National Laboratory (LANL) and near the town center, as business travelers and scientists comprise the primary guest demographic. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, reliable internet, dedicated workspace areas, and parking, as these appeal to extended-stay professionals and visiting researchers. Analyze pricing using AirDNA and Mashvisor to benchmark against the limited competition, noting that Los Alamos typically commands $150-300 per night due to high demand and restricted supply from the town's unique employment base. Research existing STRs on Airbnb and VRBO to identify gaps in amenities or locations, particularly properties serving LANL contractors, Bandelier National Monument visitors, and families visiting students at UNM-Los Alamos. Utilize STR-specific tools like Rabbu and AllTheRooms for market analysis, while consulting Los Alamos County's short-term rental regulations and working with local real estate agents familiar with the scientific community's housing needs to identify properties in neighborhoods like White Rock or Barranca Mesa that offer both proximity to LANL and scenic mountain views.

To obtain an Airbnb/STR permit in Los Alamos, New Mexico, you must first contact the Los Alamos County Planning Division at 1000 Central Avenue, Suite 200, Los Alamos, NM 87544, or call (505) 662-8170 to submit a Short-Term Rental Business License application. Required documents include a completed application form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), fire safety inspection certificate from Los Alamos Fire Department, and a $150 application fee plus $75 annual renewal fee. You must also obtain a New Mexico business license through the Taxation and Revenue Department and register for gross receipts tax. The property must comply with Los Alamos County zoning requirements (typically allowed in residential zones with restrictions), maintain maximum occupancy limits based on bedrooms and square footage, provide adequate parking (minimum 2 spaces), and pass health and safety inspections. The approval timeline is typically 30-45 days after submitting a complete application, and you must renew annually by December 31st. Additional requirements include posting the permit number in all advertisements, maintaining a guest registry, providing 24/7 contact information to neighbors, and ensuring quiet hours compliance between 10 PM and 7 AM.

Short-term rentals (STRs) are legal in Los Alamos, New Mexico, but operate under specific regulations established by Los Alamos County. The county requires STR operators to obtain a business license and comply with zoning restrictions, with STRs generally permitted in residential zones but subject to occupancy limits and parking requirements. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide emergency contact information and maintain liability insurance. Los Alamos County implemented these regulations around 2019-2020 to balance tourism benefits with neighborhood preservation, requiring a conditional use permit for some STR operations and limiting the number of guests based on property size. The county prohibits STRs in certain residential areas where homeowner associations have specific restrictions, and operators must collect and remit gross receipts tax to the state. Recent enforcement has focused on ensuring compliance with noise ordinances and parking regulations, with violations potentially resulting in permit revocation.

The best areas for Airbnb investment in Los Alamos, New Mexico are the White Rock neighborhood, which offers scenic mesa views and proximity to outdoor recreation areas like Bandelier National Monument, attracting tourists and nature enthusiasts year-round. The historic Townsite area near Central Avenue and Trinity Drive is ideal due to its walkability to restaurants, shops, and cultural attractions, plus its appeal to business travelers visiting Los Alamos National Laboratory and scientists attending conferences. The Western Area neighborhoods provide excellent value with larger properties that can accommodate families visiting the lab or exploring nearby attractions, while the North Mesa area offers newer construction and mountain views that appeal to higher-end leisure travelers. These locations benefit from consistent demand from LANL contractors, visiting researchers, tourists exploring atomic history at the Bradbury Science Museum, and outdoor enthusiasts accessing hiking trails, making them attractive for short-term rental investments with occupancy rates typically ranging 60-75% annually.

In Los Alamos, New Mexico, Airbnb hosts are subject to multiple lodging taxes including the state gross receipts tax at 5.125%, Los Alamos County lodging tax at 5%, and potentially a municipal lodging tax of approximately 2-3%. These taxes apply to short-term rentals under 30 days and are typically collected directly by Airbnb through their automated tax collection service for most jurisdictions, though hosts should verify coverage with the New Mexico Taxation and Revenue Department and Los Alamos County. For taxes not collected by Airbnb, hosts must register with the appropriate tax authorities, collect taxes from guests, and remit payments monthly or quarterly depending on volume, with returns due by the 25th of the following month. The combined effective tax rate ranges from 10-13% of the rental amount, with exemptions generally limited to stays exceeding 30 consecutive days which are considered long-term rentals rather than transient lodging, and hosts should maintain detailed records of all bookings and tax collections for compliance purposes.

Starting an Airbnb in Los Alamos, New Mexico requires approximately $450,000-$550,000 in total initial investment. Property purchase costs average $380,000 based on median home prices in Los Alamos as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials total around $2,000-$3,000. Permits and fees in Los Alamos include business registration ($50), short-term rental permit ($200-$500), and potential HOA approval fees totaling approximately $1,000. Insurance for short-term rentals costs $2,000-$3,500 annually, with the first year paid upfront. Utility deposits and connections for electricity, gas, water, internet, and cable run about $1,500-$2,500. First six months of operating costs including utilities ($800/month), cleaning services ($150 per turnover averaging 8 cleanings monthly), maintenance and supplies ($300/month), platform fees to Airbnb and VRBO (6-9% of bookings estimated at $1,200/month), and property management if outsourced ($800/month) total approximately $20,000-$25,000, assuming moderate occupancy rates of 60-70% during the initial period.

Airbnb properties in Los Alamos, New Mexico, demonstrate moderate to strong profitability due to the city's unique position as home to Los Alamos National Laboratory, creating consistent demand from visiting scientists, contractors, and government personnel. Properties typically generate $2,500-4,500 monthly revenue with average daily rates of $120-180, significantly higher than the New Mexico state average of $95. Operating expenses including cleaning fees ($75-100 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), and maintenance average 40-50% of gross revenue, yielding net profit margins of 25-35% for well-managed properties. Success factors include proximity to the laboratory (properties within 5 miles command premium rates), modern amenities appealing to business travelers, reliable internet for remote work, and professional property management given the transient nature of many guests. A typical 3-bedroom home purchased for $450,000 in 2022 generates approximately $42,000 annual revenue with $18,000 in expenses, producing $24,000 net profit and 5.3% cash-on-cash return, though properties closer to LANL or with luxury amenities can achieve 7-9% returns, making Los Alamos a relatively stable short-term rental market compared to tourism-dependent destinations.

Airbnb investments in Los Alamos, New Mexico typically generate annual ROI of 8-12% due to the city's proximity to Los Alamos National Laboratory and steady influx of scientists, contractors, and tourists visiting Bandelier National Monument. Cash-on-cash returns generally range from 6-10% annually, with properties near the lab or downtown historic district performing at the higher end. Most investors achieve profitability within 18-24 months, assuming a 20-25% down payment on properties averaging $400,000-$600,000. The market benefits from consistent year-round demand from laboratory personnel on temporary assignments, with average daily rates of $120-$180 and occupancy rates of 65-75%. Properties with 2-3 bedrooms and modern amenities typically see the strongest performance, with some investors reporting total returns of 15-18% when factoring in property appreciation of 3-5% annually in this specialized market driven by government research activities.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Los Alamos, New Mexico, providing comprehensive market data and investment analysis tools. Local real estate agents specializing in Airbnb investments include Keller Williams Santa Fe with agents experienced in Los Alamos vacation rental properties, and Coldwell Banker Mountain Properties which has served the area since 1995. Sotheby's International Realty Santa Fe also maintains agents familiar with Los Alamos investment properties. National services include Mashvisor, which launched in 2014 and provides Airbnb profitability analysis, AirDNA offering market data since 2015, and Awning which specializes in short-term rental property management and acquisition consulting. RedAwning provides vacation rental investment services, while BiggerPockets connects investors with local professionals. Local property management companies that assist with Airbnb investments include Vacasa, which expanded to New Mexico in 2018, and AvantStay for luxury properties. Real estate investment firms like Roofstock and Arrived Homes have expanded into vacation rental markets, though their Los Alamos presence may be limited given the city's smaller size of approximately 13,000 residents and its proximity to Los Alamos National Laboratory creating unique market dynamics.