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 county 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. Find a suitable property in approved residential zones, considering Los Alamos' unique market of scientists, researchers, and tourists visiting Bandelier National Monument, with properties near Los Alamos National Laboratory or downtown areas being most desirable. Furnish the space with quality amenities including reliable Wi-Fi, comfortable bedding, kitchen essentials, and consider the area's high-altitude climate by providing appropriate heating and cooling, while incorporating local southwestern décor to appeal to tourists. List your property on Airbnb and other platforms with professional photos highlighting proximity to LANL, Bandelier, and outdoor recreation opportunities, setting competitive rates typically ranging $80-150 per night based on 2023 market conditions. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, collecting and remitting the required 5.125% state lodgers tax plus local taxes, and ensuring ongoing compliance with Los Alamos County's short-term rental regulations including noise ordinances and parking requirements.

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 STR data platforms, noting that Los Alamos typically commands $150-250 per night due to limited hotel inventory and high-income visitors, with occupancy rates often exceeding 70% annually. Research competition by monitoring existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or property types, and noting that the market remains relatively undersaturated compared to tourist destinations like Santa Fe. Utilize tools such as Mashvisor for investment analysis, AirDNA for market data, and local resources including the Los Alamos Chamber of Commerce, Los Alamos County planning department for zoning regulations, and networking with LANL contractors who understand visitor patterns and housing needs in this unique scientific community market.

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, a site plan showing parking and access, proof of liability insurance (minimum $1 million coverage), fire safety inspection certificate from Los Alamos Fire Department, septic system inspection (if applicable), and a $150 application fee plus $100 annual renewal fee. You must also obtain a New Mexico gross receipts tax license from the Taxation and Revenue Department and register with the New Mexico Tourism Department for lodgers tax collection. The property must comply with zoning requirements (typically allowed in residential zones with restrictions), provide adequate off-street parking (minimum 2 spaces), meet occupancy limits based on bedrooms and square footage, and maintain quiet hours from 10 PM to 7 AM. The approval process typically takes 4-6 weeks after submission of complete documentation, and you must display the permit number in all online listings and at the property entrance once approved.

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 most residential areas allowing STRs but with occupancy limits typically capped at 8-10 guests depending on the property size and parking availability. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators must collect and remit gross receipts tax to the state. Los Alamos County implemented these regulations around 2018-2019 to balance tourism revenue with neighborhood character preservation, and STRs are generally prohibited in certain high-density residential zones and areas near Los Alamos National Laboratory due to security considerations. Recent changes have focused on strengthening enforcement mechanisms and clarifying permit requirements, with the county conducting periodic reviews of STR impacts on housing availability and community welfare.

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 sites, 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 Barranca Mesa area offers newer homes with mountain views that appeal to both leisure travelers seeking luxury accommodations and extended-stay business visitors. These areas benefit from consistent demand driven by LANL operations, scientific conferences, tourism to Bandelier and Valles Caldera, and Los Alamos' unique Manhattan Project history, with peak seasons during summer hiking months and winter ski season access to nearby mountains.

In Los Alamos, New Mexico, Airbnb hosts are subject to multiple lodging taxes including the New Mexico Lodgers' Tax at 5%, Los Alamos County lodging tax at approximately 6%, and potentially a municipal lodging tax of around 2-3%, resulting in a combined rate of approximately 13-14% on gross rental receipts. The state lodgers' tax is collected by the New Mexico Taxation and Revenue Department and must be remitted monthly if receipts exceed $100 per month, with returns due by the 25th of the following month. Los Alamos County requires separate registration and monthly remittance of county lodging taxes, typically due by the 20th of the month following collection. Airbnb may collect and remit some of these taxes on behalf of hosts through their platform, but hosts remain responsible for ensuring compliance with all applicable tax obligations. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation. Hosts must register with both state and local tax authorities, maintain detailed records of all rental income and tax collections, and file regular returns even during periods of no activity.

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 decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials total around $2,000-$3,000. Permits and fees in Los Alamos include business license ($100-$200), short-term rental permit ($300-$500), and potential HOA approval fees ($200-$500). Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage. Utility setup and deposits for electricity, gas, water, internet, and cable run about $500-$800 initially, with monthly costs of $200-$350. First six months of operating expenses including utilities ($1,200-$2,100), cleaning services ($1,800-$3,000), maintenance reserves ($1,000-$2,000), property management software ($300-$600), and marketing ($500-$1,000) total approximately $4,800-$8,700, bringing the complete startup investment to roughly $405,000-$420,000 for a moderately-priced property in this Los Alamos County market.

Airbnb properties in Los Alamos, New Mexico typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on proximity to Los Alamos National Laboratory and seasonal demand from visiting scientists and tourists exploring nearby Bandelier National Monument. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within walking distance of the lab or downtown area achieve occupancy rates of 65-75%, while those in White Rock or more remote locations see 45-60% occupancy. A typical 3-bedroom home purchased for $400,000-500,000 can generate net profits of $15,000-25,000 annually, representing profit margins of 35-45% after all expenses. Success factors include targeting the steady stream of government contractors and researchers who require extended stays, offering high-speed internet and workspace amenities, and capitalizing on summer tourism peaks when families visit area attractions, with properties featuring outdoor spaces and mountain views commanding premium rates during Los Alamos's peak season from May through September.

Airbnb investments in Los Alamos, New Mexico typically generate annual ROI of 12-18% 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 8-14% annually, with properties near the lab or downtown historic district performing at the higher end. The limited housing supply and consistent demand from laboratory personnel create occupancy rates of 70-85% year-round, with peak summer months reaching 90-95% due to tourism. Initial profitability usually occurs within 18-24 months for well-positioned properties, with full investment recovery typically achieved in 6-8 years. Properties in the White Rock area and central Los Alamos command premium nightly rates of $120-180, while those closer to recreational areas like Pajarito Mountain average $90-140 per night, contributing to the strong overall returns in this specialized market driven by the unique combination of scientific research facilities and natural attractions.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities in Los Alamos, New Mexico, using data analytics to evaluate potential Airbnb returns. Local real estate agents like Keller Williams Santa Fe and Coldwell Banker Mountain Properties have agents experienced in investment properties in the Los Alamos area, while RE/MAX Mountain Realty offers specialized services for vacation rental investors. National services include Mashvisor, which provides Airbnb investment analysis tools, and BiggerPockets, which connects investors with local professionals in the Los Alamos market. AirDNA offers market data and analytics specifically for short-term rental investments in the region, while companies like Awning and Roofstock have expanded their services to include short-term rental investment properties in smaller markets like Los Alamos. Local property management companies such as Vacasa and RedAwning also provide insights into profitable properties while offering management services, and investment-focused brokerages like eXp Realty have agents who specialize in Airbnb investment properties throughout New Mexico including the Los Alamos area.