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Short-term rentals (STRs), often referred to locally as vacation rentals, are allowed in Watrous, New Mexico, provided hosts comply with state regulations, which include obtaining necessary permits and adhering to tax obligations. The real estate landscape features a mix of properties, including quaint cabins in rural settings and unique homes that cater primarily to tourists, drawn by the area's cultural richness and outdoor activities. The local STR market benefits from Watrous's appeal to both leisure travelers exploring nearby attractions and business travelers visiting the region. The regulatory environment is managed by the New Mexico Taxation and Revenue Department, overseeing compliance with costs associated with short-term vacation rentals, including lodging and gross receipts taxes varying from 5.125% to 8.6875%. For detailed regulations and requirements, visit the New Mexico state resource page..
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