Short-term rentals (STRs), often referred to as vacation rentals or local rentals, are legal in Sagar, New Mexico, but regulated under state and municipal laws. While specific local regulations for Sagar may vary, New Mexico generally mandates that all STR operators secure a permit and pay applicable lodging taxes, such as the Lodgers' Tax, typically ranging from 5% to 7% depending on the area. Properties that thrive in this market include cabins set in picturesque rural surroundings and modest homes or apartments suitable for families and small groups. The local market is largely driven by tourism, particularly highlighted during peak seasons when outdoor activities attract visitors seeking authentic New Mexican experiences, although some accommodation options also cater to business travelers. The New Mexico Tourism Department is the primary authority overseeing these regulations and licensing. For further information on STR laws in New Mexico, you can visit the New Mexico State website and other local resources for latest guidelines and permits: https://www.steadily.com/blog/airbnb-short-term-rental-laws-and-regulations-in-new-mexico.