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Short-term rentals (STRs), commonly referred to as "vacation rentals," are legal in Caballo, New Mexico, although they are regulated on a broader state level rather than strictly at the local level. These rentals primarily consist of cabins and rural homes, which are popular due to Caballo's scenic attractions such as Caballo Lake State Park. The market is largely oriented towards tourism, catering to visitors seeking outdoor activities and local natural beauty, rather than business travelers. New Mexico mandates that all short-term rental operators comply with certain tax obligations, including the Lodgers' Tax and Gross Receipts Tax, which can vary by locality. Before listing a property, hosts need to seek applicable permits and ensure compliance with safety and zoning regulations. The New Mexico Taxation and Revenue Department oversees these regulations, with details available on their official website. For specific local governance, property owners may need to check with nearby jurisdictions for additional requirements, though Caballo itself operates under state guidelines primarily. For more information, visit the State of New Mexico’s official site for short-term rentals here.
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