Is Roswell, New Mexico Good for Airbnb Investment?

To start an Airbnb in Roswell, New Mexico, begin by researching local regulations through the City of Roswell 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 Roswell Building Department to secure necessary permits including a Certificate of Occupancy for commercial use, fire safety inspection, and potentially a conditional use permit depending on your property's zoning classification. Find a suitable property by working with local real estate agents familiar with Roswell's market, focusing on areas near popular attractions like the International UFO Museum or downtown historic district, with average property prices ranging from $80,000-$200,000 for suitable homes. Furnish the property with southwestern-themed decor reflecting New Mexico's culture, ensuring all safety requirements are met including smoke detectors, carbon monoxide detectors, and first aid kits, while budgeting approximately $15,000-$25,000 for complete furnishing. List your property on Airbnb and other platforms like VRBO, highlighting proximity to UFO-related attractions, Bottomless Lakes State Park, and the historic downtown area, with competitive pricing around $75-$150 per night based on local market analysis. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company like Vacasa or RedAwning if you're not local, while maintaining compliance with New Mexico's gross receipts tax requirements and Roswell's 6.8125% lodgers tax that must be collected and remitted monthly to the city.

To identify profitable short-term rental properties in Roswell, New Mexico, focus on locations within 2-3 miles of the International UFO Museum, downtown historic district, and near Bottomless Lakes State Park, as these areas attract the majority of tourists visiting for UFO-related attractions and outdoor activities. Target 2-4 bedroom single-family homes or casitas built after 1980 with unique southwestern architectural features, private outdoor spaces, and reliable internet, as Roswell's visitor demographic includes families and UFO enthusiasts who value authentic New Mexico experiences. Conduct pricing analysis using AirDNA and STR data showing Roswell's average daily rates range from $80-150 depending on property size and location, with peak seasons during UFO Festival (July) and spring/fall months when weather is optimal for outdoor activities. Research competition by analyzing the approximately 150-200 active STR listings in Roswell, noting that properties with UFO-themed decor, stargazing amenities, or proximity to Walker Air Force Base historical sites command premium rates. Utilize tools like Mashvisor for market analysis, AllTheRooms for competitive intelligence, and local resources including the Roswell Convention and Visitors Bureau data, Chaves County tourism statistics, and Facebook groups like "Roswell New Mexico Short Term Rentals" to understand seasonal demand patterns driven by the city's unique position as America's UFO capital and gateway to southeastern New Mexico's natural attractions.

To obtain an Airbnb/STR permit in Roswell, New Mexico, start by contacting the Roswell Planning and Zoning Department at City Hall located at 425 N Richardson Ave to confirm current requirements as regulations may vary. You'll typically need to submit a short-term rental application along with required documents including proof of property ownership or lease agreement, a site plan showing the property layout, proof of liability insurance (usually $1 million minimum), contact information for a local property manager if you're not local, and a completed business registration form. The application fee is estimated at $100-300 initially with potential annual renewal fees of $50-150. Submit your complete application to the Planning Department and schedule any required inspections for fire safety, building code compliance, and zoning verification. The approval timeline typically ranges from 30-60 days depending on inspection scheduling and application completeness. Roswell-specific requirements likely include maintaining occupancy limits based on property size, providing adequate parking spaces, ensuring proper waste disposal arrangements, maintaining quiet hours typically from 10 PM to 7 AM, and displaying your permit number in all rental listings. Once approved, you'll receive your STR permit which must be renewed annually, and you'll need to comply with New Mexico state lodgers tax requirements by registering with the Taxation and Revenue Department and collecting applicable taxes from guests.

Short-term rentals (STRs) are legal in Roswell, New Mexico, but operate under specific municipal regulations that were updated around 2020-2021. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally allow STRs in residential areas with certain limitations on the number of guests and parking requirements. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide contact information for a local representative available 24/7 for noise or other complaints. Roswell prohibits STRs in certain historic districts and areas zoned specifically for long-term residential use, and the city has implemented occupancy limits typically based on bedroom count plus additional guests. Recent changes have included stricter enforcement of noise ordinances and requirements for annual permit renewals, with the city conducting periodic inspections to ensure compliance with health and safety standards.

The best areas for Airbnb investment in Roswell, New Mexico include the Historic Downtown District near Main Street, which attracts tourists visiting the International UFO Museum and Research Center and benefits from the annual UFO Festival in July that draws thousands of visitors. The area around the Roswell Museum and Art Center on North Main Street offers strong potential due to its proximity to cultural attractions and the New Mexico Military Institute, generating consistent business travel and family visitation. The neighborhoods near Cahoon Park and Spring River Park are attractive for their recreational amenities and family-friendly atmosphere, appealing to visitors seeking outdoor activities and longer stays. The Eastern New Mexico University-Roswell campus area provides opportunities for academic-related travel, including prospective students, faculty, and conference attendees. Additionally, properties near the Roswell Industrial Air Center benefit from business travelers and aviation enthusiasts, while the residential areas around Country Club Road offer a quieter setting for families and groups visiting for UFO tourism, military events, or regional business, with these locations typically commanding higher nightly rates due to their desirable neighborhood characteristics.

In Roswell, New Mexico, Airbnb hosts are subject to multiple lodging taxes including the state gross receipts tax of 5.125%, the New Mexico lodging tax of 5%, and Roswell's municipal lodging tax of approximately 6-7%. These taxes apply to short-term rentals under 30 days and are typically collected from guests at the time of booking, with Airbnb automatically collecting and remitting state and local taxes in many cases through their tax collection service that began around 2019. Hosts must register with the New Mexico Taxation and Revenue Department and obtain a CRS number for gross receipts tax reporting, while also registering with the City of Roswell for local lodging tax compliance. Monthly remittance is generally required by the 25th of the following month, with quarterly filing options available for smaller operators. Exemptions typically include stays over 30 consecutive days, government employees on official business, and certain medical-related stays, though hosts should verify current exemption criteria as they can change. The combined effective tax rate for short-term rentals in Roswell is approximately 16-17%, making proper tax compliance essential for Airbnb operators in the area.

To start an Airbnb in Roswell, New Mexico, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $140,000-$160,000 based on median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. 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 city registration requirements. Insurance costs run $1,200-$2,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $800-$1,200. First six months operating costs including utilities ($600-$900 monthly), cleaning services ($100-$150 per turnover), maintenance reserves, property management software subscriptions, and marketing expenses typically require $8,000-$12,000 in working capital. Additional considerations include potential HOA fees, property taxes, and emergency repair funds that could add another $3,000-$5,000 to initial requirements.

Airbnb properties in Roswell, New Mexico typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $65-$120 depending on property size and proximity to the International UFO Museum and Research Center. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,200 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near downtown Roswell and UFO-themed attractions achieve higher occupancy rates of 55-70% compared to 35-50% for suburban locations, with themed properties capitalizing on the city's alien tourism generating profit margins of 25-40%. Success factors include strategic location within 2 miles of Main Street attractions, unique UFO or space-themed decor, competitive pricing during peak tourist seasons (July-September), and maintaining high cleanliness standards given the transient nature of UFO tourism. A typical 3-bedroom property purchased for $180,000 and generating $28,000 annual revenue with $16,000 in expenses yields approximately $12,000 net profit, representing a 6.7% return on investment before mortgage considerations, making Roswell's Airbnb market moderately profitable for investors who understand the niche tourism dynamics.

Airbnb investments in Roswell, 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 the International UFO Museum and Research Center which attracts approximately 200,000 visitors annually, along with business travelers to nearby Walker Air Force Base and oil industry workers in the Permian Basin region. Properties within 2-3 miles of the UFO Museum and downtown historic district command premium nightly rates of $85-120, while suburban properties average $60-85 per night with occupancy rates of 65-75% during peak tourist season (March through October) and 45-55% during winter months. Initial profitability typically occurs within 18-24 months for properties purchased below $150,000 with renovation costs under $25,000, while higher-end investments may require 30-36 months to reach positive cash flow due to Roswell's median household income of approximately $38,000 limiting local demand and creating heavier reliance on tourism and transient worker accommodation.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Roswell, New Mexico, offering comprehensive market analysis and property recommendations. Local real estate agents specializing in investment properties include Coldwell Banker Legacy Realty agents who understand the Roswell market dynamics, and RE/MAX professionals with experience in vacation rental investments. Keller Williams Realty agents in the area also provide services for Airbnb property acquisition. National services include Mashvisor, which offers detailed Airbnb analytics for Roswell properties, AirDNA for market data and revenue projections, and BiggerPockets for connecting with local investors and agents. RedAwning provides property management and acquisition services for short-term rentals in smaller markets like Roswell. Local property management companies such as High Desert Property Management and Pecos Valley Property Services offer insights into profitable rental properties and can assist with property identification. Additionally, HostGPO provides purchasing power and market analysis for Airbnb investors, while Awning offers end-to-end services from property identification to management in emerging markets like Roswell, leveraging the area's proximity to attractions like the International UFO Museum and Bottomless Lakes State Park.