Los Lunas, New Mexico Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Los Lunas, NM?

YES - Short-term rentals are explicitly allowed in Los Lunas, NM, but only with proper permits and under strict regulatory conditions.

Following a comprehensive ordinance adopted on February 11, 2025, the Village of Los Lunas now permits short-term rentals as an accessory use in residential zones. However, this allowance comes with significant restrictions designed to prevent neighborhood saturation and maintain community character. The new regulations create a permitting system where previously, all STRs were technically operating in violation of village zoning ordinances that did not anticipate this use category.

Key Limitation: Property owners can rent their entire house for a maximum of 180 cumulative calendar days per year. Room rentals are permitted as accessory uses but also subject to time limitations.

What do Airbnb hosts actually earn in Los Lunas?

Los Lunas hosts earn a median $21,628/year with $141 ADR and 64% occupancy.

Top performers pull in $34,027+ per year.

See the full Los Lunas market breakdown

How to Start a Short-Term Rental Business in Los Lunas

Step 1: Verify Zoning Eligibility

Confirm your property is located in a residential zone within Los Lunas corporate boundaries
Ensure you can comply with the 180-day annual rental limit for whole-house rentals
Verify no other STRs exist on adjacent properties on the same street (this restriction preventsSTR saturation)

Step 2: Obtain Required Permits and Documentation

Submit Short-Term Rental Permit Application to Community Development Department
Pay $100 application fee
Obtain Business Registration (required per Section 17.14.020(E)(1)(x))
Secure adequate short-term rental insurance coverage
Prepare site plan showing rented structure and parking arrangements

Step 3: Ensure Operational Compliance

Designate a 24/7 available owner/operator for complaint response
Include STR permit number in all advertising
Register for and submit Lodger's Tax (exemption has been removed by state law change)
Prepare for potential random inspections by Village officials

Required Documents, Permits, Licenses, and Guidelines

Primary Requirements

1. Short-Term Rental Permit Application

Complete application form (Rev. 02112025)
Application fee: $100
Submit to Village of Los Lunas Community Development Department

2. Required Documentation

Proof of Ownership: Legal document demonstrating current property ownership
Agent Authorization (if applicable): Document authorizing applicant to represent property owner
Proof of Insurance: Written statement from insurance company acknowledging active, current rental insurance coverage
Site Plan: Property layout indicating rented structure, parking spaces, RV parking availability
Business Registration: Required under Section 17.14.020(E)(1)(x) of Municipal Code

3. Acknowledgments Required (Must be initialed)

Compliance with Section 17.10.060(I) and all applicable Village Codes
24/7 availability commitment for complaint response
Review of Title 17 Municipal Code sections related to STRs
Acknowledgment of random inspection rights per Section 17.10.060(I)(2)(ix)
Inclusion of permit number in advertising
Registration for Lodger's Tax submission
Understanding of non-compliance consequences (fines and permit revocation)

Specific Regulations for Short-Term Rentals

Los Lunas Municipal Regulations

Permitted Use Status

STRs are allowed as accessory uses in residential zones with proper permits
Whole-house rentals limited to 180 cumulative calendar days per year
Room rentals permitted as accessory uses with time limitations

Geographic Restrictions

No more than two STRs can operate on the same street
Cannot have two STRs on adjacent properties on the same street
This limitation prevents over-concentration of commercial STR activity in residential areas

Operational Requirements

Property owner/operator must be available 24 hours per day, 7 days per week for complaint response
Random inspections permitted by Village officials
Permit number must be included in all advertising
Must maintain adequate short-term rental insurance coverage

Parking Compliance

Maximum number of vehicles allowed must comply with Section 17.60.10 of Municipal Code
Parking arrangements must be detailed in submitted site plan

Enforcement and Penalties

Standard Violation Process

15-day cure period for typical zoning violations
Village has authority to issue citations and pursue additional violations

Immediate Action Triggers

If renter conduct results in police citation or criminal complaint, the 15-day cure period is waived
Immediate citation may be issued to property owner in such cases
Police department responds to STR properties for criminal activity and nuisance violations (excessive noise, etc.)

Lodger's Tax Requirements

State Law Change

Recent amendment to state law removed exemption for lodger's taxes on short-term rentals
Los Lunas can now assess lodger's tax based on available rooms
Must register STR business with Village of Los Lunas and submit appropriate Lodger's Tax

State-Level Regulations (New Mexico)

Short-Term Rental Definition (Los Lunas)

"A dwelling unit or a portion of a dwelling that is rented by the vendor to a vendee for less than 30 consecutive days"

State Lodger's Tax

Short-term rentals are now subject to lodger's taxes following removal of previous exemption
Assessment based on number of rooms available for rental

Contact Information for Local Authority

Village of Los Lunas Community Development Department

Address: 660 Main Street NW, Los Lunas, NM 87031
Phone: (505) 839-3842
Department: Community Development Department
Contact Person: Erin Callahan, Community Development Director

Operating Hours

Monday through Friday: 8:00 AM to 5:00 PM

Municipal Code Review

Municipal Code available for review at Village Administrative Office during business hours
Also available on Village website: www.loslunasnm.gov

Links to Source Pages

Los Lunas STR Permit Application Form: loslunasnm.gov/DocumentCenter/View/11228/Short-Term-Rental-Permit-Application---Rev-02112025-PDF
Valencia County News Bulletin - STR Ordinance Article: www.news-bulletin.com/news/business/short-term-rentals-in-los-lunas-will-need-permits-enforcement/article_c0e11025-6ed7-5b3b-949d-d9db6a4576cf.html
Los Lunas Municipal Code Draft (Title 17 Zoning): www.loslunasnm.gov/DocumentCenter/View/15114

Important Notes for Investors: The 180-day annual limit significantly impacts revenue potential for whole-house STRs. The geographic restrictions on adjacent properties require careful site selection. The removal of lodger's tax exemption affects profitability calculations. The 24/7 availability requirement necessitates local management arrangements for out-of-state owners. The enforcement provisions, particularly the immediate action for criminal activity, require careful tenant screening and monitoring protocols.

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Ask the AI Advisor about Los Lunas

Los Lunas is a village in Valencia County, New Mexico, situated along the Rio Grande roughly twenty-five miles south of Albuquerque. With a population of approximately 16,000 residents, it serves as the county seat of Valencia County and carries a relaxed, semi-rural character while remaining closely tied to the Albuquerque metropolitan area. The community acts as a practical base for travelers exploring central New Mexico, with convenient road and rail access to Albuquerque and Santa Fe, and it offers a quieter alternative to staying in those busier destinations.

One of the most unusual local draws is the Los Lunas Decalogue Stone, a large boulder inscribed with characters that resemble ancient Paleo-Hebrew script, resting on a hillside just outside the village. The origins of the stone remain a matter of scholarly debate, but it has drawn curious visitors and amateur researchers for years and stands as a quirky piece of southwestern lore. It is reached by a short drive from the center of Los Lunas, followed by a brief walk up the hillside from the parking area.

Los Lunas is also connected to Albuquerque and Santa Fe by the New Mexico Rail Runner Express commuter rail, with a station in the heart of the village. The roughly thirty-minute ride into Albuquerque opens up the cultural and recreational offerings of the state's largest city, including the Sandia Peak Tramway, which carries visitors to the crest of the Sandia Mountains, and Petroglyph National Monument, a preserved stretch of volcanic escarpment on the city's west side containing thousands of ancient rock carvings etched into dark basalt boulders.

To the east of Los Lunas, the Manzano Mountains rise from the high desert and offer a different kind of escape. The Manzano Mountains State Park provides day-use trails and picnic areas beneath pine and juniper woodlands, about an hour's drive from the village. Closer to town, the Rio Grande itself is bordered by a long ribbon of cottonwood forest known locally as the bosque, where visitors can walk, cycle, or watch for herons and other waterfowl along riverside paths managed by the Middle Rio Grande Conservancy District.

For travelers considering a short-term rental, Los Lunas offers a compelling combination of small-town quiet, lower lodging costs than Albuquerque proper, and excellent connectivity to the rest of central New Mexico. The Rail Runner makes it easy to spend a day in Santa Fe or Albuquerque and still return to a peaceful base, while the surrounding mountains, river, and historic curiosities give visitors plenty of reasons to stay close to home. That balance of accessibility and small-town character is what makes Los Lunas an appealing place to stay while exploring the region.