One week in October can make an Albuquerque host's year. During the International Balloon Fiesta, homes near Balloon Fiesta Park, Old Town and Nob Hill book at their highest rates of the year. The other 51 weeks depend on hospitals, the base, the labs, the university and film production.
In short: LendingStreet finances Albuquerque short-term rentals with DSCR loans that can qualify on projected nightly revenue on some programs. Loans start at $150,000, purchases go up to 80% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. Albuquerque allows short-term rentals with a city permit and lodgers' tax registration, so confirm the property can be permitted and that no HOA rule blocks rentals under 30 days before you buy.
The City of Albuquerque permits short-term rentals rather than banning them, but operators need a city STR permit, must register for lodgers' tax and must report gross receipts tax on rental income. The ordinance has been revised since it was first adopted, and requirements such as neighbor notice, safety items and insurance can change, so read the current rules for the specific address.
Many subdivisions on the Westside, in the Northeast Heights and in Rio Rancho have HOA covenants that prohibit rentals under 30 days or require minimum lease terms. If the covenants say no, the projection-based STR approach will not work, though a long-term lease can still support a DSCR loan.
Location relative to a reason to visit matters more than square footage. The most common areas include:
Balloon Fiesta in early October is the clear peak, and many hosts set minimum stays for that week. Spring and fall are pleasant and steady, summer is hot but still active, and the winter holidays bring luminaria tours and family visits. Mid-term stays from traveling nurses at UNM Hospital and Presbyterian, film crews at local studios, and Kirtland and Sandia contractors fill gaps.
A projection that assumes Fiesta pricing all year is not realistic. Lenders want to see that the property clears the payment on annual revenue, so show monthly numbers and the plan for slower months.
Santa Fe draws more tourists per capita but limits permits for non-owner-occupied short-term rentals in residential zones, and the list of available permits can be full. Taos and Ruidoso are mountain markets with strong seasonal demand and their own local rules. Rio Rancho, Bernalillo and the East Mountains each set their own requirements. Check the specific town or county before you buy, and see our New Mexico short-term rental page for statewide context.
Corrales and Placitas appeal to guests who want horse property, vineyards and mountain views close to the city, while the East Mountains along the Turquoise Trail draw hikers and skiers headed to Sandia Peak. Revenue in these areas leans on weekends and holidays, so projections should reflect that pattern.
This example is illustrative and not a quote. An investor buys a three-bedroom home near Nob Hill for $365,000. A third-party projection estimates $45,600 in annual revenue, about $3,800 a month, including Balloon Fiesta week.
At 75% LTV the loan is $273,750. Estimated principal and interest is about $1,914. Property taxes, budgeted on the purchase price because New Mexico revalues at sale, are $340 a month, and STR insurance is $165. The total payment is about $2,419 and DSCR is about 1.57x. If revenue came in 20% lower, DSCR would be about 1.26x.
| Item | Full projection | Projection less 20% |
|---|---|---|
| Purchase price | $365,000 | $365,000 |
| Loan at 75% LTV | $273,750 | $273,750 |
| Estimated principal and interest | $1,914 | $1,914 |
| Taxes and insurance | $505 | $505 |
| Total monthly payment | $2,419 | $2,419 |
| Monthly revenue used | $3,800 | $3,040 |
| DSCR | 1.57x | 1.26x |
New Mexico taxes residential property at a one-third assessment ratio, and annual increases in taxable value are limited for residential property while the owner stays the same. When the home sells, the Bernalillo County Assessor can revalue it to the current market price. A seller who has owned for 15 years may have a tax bill far below what you will pay.
Budget taxes on your purchase price at the current local mill levy, not on the seller's bill. New Mexico also does not publicly disclose sale prices, so appraisers rely on MLS and other data for comps.
Albuquerque homes often have flat or low-slope roofs with parapets, stucco exteriors and evaporative coolers. Guests increasingly expect refrigerated air in summer, and flat roofs need regular maintenance to avoid leaks during monsoon storms. Budget for these items and for a policy written for short-term rentals.
If you already operate a permitted rental with booking history, a DSCR refinance can use actual revenue on some programs. Cash-out goes up to 75% LTV, and seasoning varies by program. Our STR refinance guide explains how history is used.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address and projection through the form below or call (877) 298-1001.
Yes, with a city STR permit and lodgers' tax registration, and subject to zoning and any HOA covenants. Check the current ordinance for the address before you buy.
It is the biggest week of the year, but the loan has to work on annual revenue. Show a realistic month-by-month projection rather than Fiesta rates all year.
Possibly, but Santa Fe limits permits for non-owner-occupied short-term rentals in residential zones. Confirm a permit is available before you rely on nightly income.
New Mexico limits annual increases in taxable value only while ownership stays the same. After a sale, the county can revalue to market, so budget on your purchase price.
On some programs, yes, often from a third-party projection. On a refinance, actual history can be used on some programs.
They can support revenue, depending on how the program treats them. Bookings of 30 days or more may also fall under different HOA and city rules than nightly stays.
No. The loan qualifies on the property's revenue and DSCR, with a 620 minimum credit score and LLC borrowers allowed.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so it must be run as a rental.
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