A house off Tano Road can have a rental history, a guest book and a season of strong bookings, and none of it passes to the buyer at closing. In unincorporated Santa Fe County, the license to run a short-term rental in a home the owner doesn't live in is issued to the record title owner. Each dwelling needs its own license, and each license lasts one year. When the deed changes hands, the buyer applies as a new owner under a cap set by Census Designated Place, and in some places that cap ends in a waiting list.
So a buyer's rental prospects on one of these homes depend on two things: the cap set for that Census place and how much room is left under it in the year they apply.
The license belongs to a person and lasts a year
The County's rules come from Ordinance 2022-07, adopted October 25, 2022 and in effect since November 24, 2022. Ordinances 2023-08 and 2024-01 later amended it, and the rules now sit in Chapter 110 of the Santa Fe County Code. A short-term rental is any dwelling rented for fewer than 30 consecutive days.
Under the code, the owner of a non-owner-occupied rental must be the record title owner of the property. Renewal isn't automatic and takes a complete application. Licenses issued before the caps took effect can keep renewing even where a place is over its limit, but only "so long as there is no change in ownership." Higher guest counts follow the same pattern. The County's FAQ explains that licenses allowing more than 10 guests could continue only while the home stayed with the owner named on the first application, and that after a change of ownership the standard limit applies.
Taken together, these provisions leave the buyer of a house that rents today with the following after closing:
- No license in their own name. The seller's license was issued to the seller as record title owner.
- A new application, which the County requires a pre-application appointment to begin.
- The standard occupancy limit of two people per approved bedroom, up to 10, whatever the seller was allowed.
- A place in line for a cap that is counted again every January.
The cap follows Census lines, not subdivision names
The County limits non-owner-occupied rentals by Census Designated Place. In the Tano Road CDP, the cap is 7% of total housing stock. In the La Tierra and Las Campanas CDPs, it is 3%. The County counts housing stock as the dwelling units with addresses under its rural addressing system. The Growth Management director must calculate it as of January 1 and post the allowable number by January 31. That figure holds until the next January.
When a place reaches its limit, the County stops processing applications there and puts applicants on a waiting list in the order complete applications came in. If someone has waited a year or more, the director may ask them to confirm they still want to stay on the list.
Tano Road, Las Dos and La Tierra are often marketed as one area. Under the code, though, the rental math can change at a CDP boundary that no road sign marks: one house falls under a 7% ceiling and a nearby house under a ceiling less than half as high. The County's STR FAQ links to a map of the capped areas, and County staff will check whether a given area still has room.
Two more rules affect a buyer's plans. First, the caps don't apply to owner-occupied rentals. An owner-occupied rental is the owner's primary residence, meaning at least 275 days in a 12-month period, or an accessory dwelling on the same lot. It requires a business registration, and each owner may hold one. Second, no person or entity may hold an ownership or revenue-sharing interest in more than two County STR licenses. An investor who already runs two rentals in the county can't license a third, however much room is left under a CDP's cap.
A Santa Fe mailing address, two rulebooks
The Tano Road, La Tierra and Las Campanas CDPs are named in the County's own caps, so homes there come under County licensing, even with a Santa Fe mailing address. The City of Santa Fe runs its own system under its short-term rental ordinance, and it answers the same questions differently:
| Santa Fe County, non-owner-occupied | City of Santa Fe, residential zones | |
|---|---|---|
| Limit | 3% or 7% of housing stock, by CDP | 1,000 permits citywide |
| Who holds it | Record title owner, two licenses per owner or entity | Natural persons only, one per person |
| On sale | Legacy renewal ends with a change in ownership | Permit is nontransferable |
| Fees | $375 initial license, $300 renewal | $100 one-time charge, $35 business license, $290 permit each year |
| Occupancy | 2 per approved bedroom, maximum 10 | Twice the number of bedrooms |
The City also has a frequency limit. Its Planning and Land Use Director issued an interpretation, published July 1, 2026, that limits residentially zoned rentals to 44 unique reservations per calendar year. The County has its own reporting requirement. Under its Lodgers' Tax information, operators report and pay monthly, by the 25th. In both systems, the transfer question gets the same answer. A buyer applies in their own right.
On Sunrise Vista Road, septic capacity set the guest count
One property off Tano Road shows how a County license gets sized in practice. According to The Santa Fe New Mexican, the County first approved a permit for 18 Sunrise Vista Road that allowed 10 guests overnight and 20 during the day, with quiet hours from 10 p.m. to 7 a.m. A County spokesperson told the paper the owner would have to enlarge the septic tank and resubmit for a four-bedroom rental with a limit of eight guests overnight and 16 during the day.
In a later New Mexican report, the Santa Fe County Planning Commission voted 4–2 against an appeal from neighbors and the Sundance Estate Homeowners Association. County documents showed the pickleball court plan had been withdrawn.
Guest counts under the County code follow approved bedrooms, and at this address the septic system set how many bedrooms the County would approve. Applicants must also mail notice to adjacent property owners and, where there is one, the HOA. On these streets, that notice reaches neighbors and associations that have shown they will attend hearings and file appeals.
The rules are being revisited this fall
On June 11, 2026, the County announced an updated short-term rental webpage with an online complaint portal and a 24/7 reporting hotline at 505-405-3772. A presentation on proposed amendments to the County's Short-Term Rental and Business Licensing Regulations appeared on the Board of County Commissioners' October 27, 2026 meeting summary. It was also the main purpose of a special meeting on November 2, 2026. Until the Commission adopts amendments, the code described above stays in force. Any buyer writing an offer this winter should check the rules again before closing.
This post is general information and isn't legal, tax or financial advice. Confirm how these rules apply to a specific property with the County's Growth Management staff, an attorney or a tax professional.
FAQ
Does a buyer inherit the seller's rental license? A non-owner-occupied license is held by the record title owner. Legacy renewals continue only while ownership stays the same, so a buyer applies as a new owner.
Do the caps apply if the owner lives in the home? No. Owner-occupied rentals are exempt from the CDP limits and need a $35 annual registration instead.
When is the number of allowed rentals in each area updated? Each January. The County calculates housing stock as of January 1 and posts the allowable number by January 31.
If you're weighing a property near Tano Road, Las Dos or La Tierra and its rental potential is part of the decision, Rachele and her team can help you find out which Census place it falls in and check the County's current rental capacity before you write an offer. Rachele Griego: Let's connect, and start your Santa Fe journey.
