Otero County, NM Short-Term Rentals: Short-Term Rental Permits (2026)

Section 205-67.A of the Otero County Code bars any vendor, including a short-term rental host, from providing lodging in the unincorporated county without first submitting an application and receiving approval. The application goes to the County Manager or a designee and must identify the vendor and anyone who owns or operates the lodging, list the trade name and mailing address used, describe the rental including the number of rooms and usual rates, disclose any other services offered such as cleaning or a courtesy car along with any license numbers, explain whether the business claims any exemption from the Lodger's Tax, and identify any marketplace provider, such as an online booking platform, that will be used to facilitate the rental.

The County Manager or designee must review the application within 10 days of receipt and approve it in due course once satisfied the applicant is doing business subject to the tax. An applicant unhappy with the County Manager's decision has 15 days from that decision to file a written notice of appeal, which is referred to the Board of County Commissioners for a hearing at its next regular or special meeting; the Board's ruling is final and must be issued in writing. If the Board rules for the applicant, the County Manager issues the approval reflecting that decision.

This vendor-approval step sits inside the same Lodger's Tax Ordinance, Ord. No. 24-01 as amended by Ord. No. 25-02, that imposes the county's 5% occupancy tax on short-term and hotel-style lodging outside Alamogordo, Tularosa, and Cloudcroft.