Frequently Asked Questions

A short-term rental unit is all or a portion of a “dwelling unit,” providing accommodation for rent to guests for less than 30 days. A short-term rental unit can only be located in a single-family residence. They may be one or two rooms in an owner-occupied house or the entire house.

Hotels, apartments, condos, and RV’s cannot be used as short-term rental units.

Short-term rentals are often advertised and rented through online hosting platforms like Airbnb, VRBO or Expedia.

As of July 1, 2025, a short-term rental permit is required to operate, rent, offer to rent, or advertise a short-term rental within the City. Short-term rentals will be permitted in single-family residential zoning districts E-1, R-1, R-2, R-3, R-4, and R-5. 

Short-term rental permits will be issued to “natural persons” (individual human beings) only, with a limit of two permits per natural person. The fact that a permit must be issued to a natural person does not mean that the property cannot be titled in such entities as a revocable trust, an LLC, or a corporation. If the subject property is owned by a legal or business entity, the permit must be held in the name of a person with legal authority to act on behalf of that entity.

Short-term rental permits will be capped annually at one percent (1%) of the total housing units in the City as determined by the “Comparative Housing Characteristics” table of the most recent U.S. Census Bureau’s American Community Survey as of January 1st of each year.” For calendar year 2025, permits will be limited to 420.

Short-term rental units must be 100 feet part. A short-term rental permit will not be issued for a short-term rental unit if it is located within a 100-foot radius, as measured from the subject property boundary, of a currently permitted short-term rental unit.

For the purposes of determining proximity, completed applications will be considered in the order in which they are submitted.  Applications will be considered "complete" once Development Services has notified you that all application information has been properly submitted.  Failure to provide complete information or falsifying information will result in a delay in reviewing your application or denial of your application.

A 5% Lodgers' Tax is imposed on all short-term rentals.  This is the primary funding for the Convention & Visitors Bureau/Visit Rio Rancho. This revenue is used to publicize and promote tourist-related facilities and attractions and tourist-related events in Rio Rancho.

It is unlawful to operate any short-term rental unit within the City of Rio Rancho in violation of any of the provisions contained within the Short-term Rental Regulations Ordinance. 

Development Services may issue a fine of up to $500 per day for a violation of the short-term rental permit requirements. Development Services may also revoke any short-term rental permit or fine any short-term rental operator for non-compliance with any requirement. Failure to pay any fine imposed by Development Services within 15 days may result in the revocation of the short-term rental permit.

Lastly, anyone operating a short-term rental in violation of the Short-term Rental Regulations can be cited to Municipal Court with a penalty of up to $500 and/or 90 days imprisonment.

To report concerns about a property you believe to be a short-term rental that is in violation any of the city's regulations or ordinances, you can call the 24-hour hotline (available in July 2025) or submit a report. All reports will be sent to the short-term rental operator and Rio Rancho Code Enforcement.