Santa Fe, New MexicoSTR Bonus Depreciation Market Profile · #36 in the DepreciMax Top 50

Why Santa Fe ranks #36 for STR bonus depreciation

Santa Fe ranks #36 because adobe / Southwest architecture stacks strong FF&E and outdoor amenities (kiva fireplaces, portales, casitas, courtyards) that classify heavily as 5-year and 15-year property. New Mexico's full §168(k) conformity captures the state benefit, and even at land ratios around 24%, the amenity density holds bonus-eligible % at 23.4%.

What drives Santa Fe's bonus depreciation profile?

Santa Fe STRs lean on the amenity categories the IRS classifies as 15-year land improvements — outdoor patio or courtyard, hot tub or spa, fire pit or kiva fireplace, and casita or detached guest suite. All 100% bonus-eligible in Year 1 under §168(k). Combined with land ratios that stay in the 21–27% band (leaving 73–79% of purchase price as depreciable basis), that amenity density pushes the market-median bonus-eligible % to 23.4%.

Does New Mexico conform to federal §168(k) bonus depreciation?

Investors capture the entire federal-plus-state Year 1 benefit. On a median-priced $685k Santa Fe STR, that's ~$59k in federal savings at a 37% bracket plus ~$8k in New Mexico state savings at 5.9% top marginal — combined ~$67k in Year 1. Model with your CPA before committing.

Common bonus-eligible amenities in Santa Fe STRs

Prevalence of 15-year land improvements we typically see across Santa Fe short-term rentals — all 100% bonus-eligible in Year 1 under IRS §168(k):

Santa Fe vs Killington vs Red Lodge — bonus depreciation comparison

Santa Fe and the two DepreciMax Top 50 markets ranked immediately adjacent by median bonus-eligible %. The comparison is intentionally close-ranked so the deltas that matter — price point, Diamond density, state §168(k) conformity — are directly visible.

Deeper comparative reading: The best STR markets for bonus depreciation in 2026.

Santa Fe bonus depreciation calculator (by zip code)

Santa Fe spans multiple sub-markets across the Santa Fe corridor with materially different STR economics. The calculator below has a zip dropdown — switch it to your area. The bonus-eligible percentage (Santa Fe's market-typical 23.4%) stays constant across zips because it reflects the property type, not the location.

Santa Fe zip code comparison

Looking for a deeper read on your specific property, not just the market median? Run the $99 Santa Fe property report — our AI analyzes 7–9 listing photos against the IRS classification rules and returns a line-item §168(k) estimate closely calibrated to a formal $5K–$8K cost seg study.

Representative listings & deductions

Three representative Santa Fe listings spanning entry, mid, and high price tiers. Year 1 deduction is estimated as a range around the Santa Fe market bonus-eligible average (23.4% ± 3 percentage points). Click any card to run a full property report to tighten to one exact number.

Entry — Santa Fe

$484,000

3 bd · 2 ba · 1,750 sqft

Home near Santa Fe, NM 87507

Est. Year 1 Deduction

$99k–$128k

~$37k–$47k federal savings @ 37%

Get DepreciMax Breakdown On This Property →

Mid — Santa Fe

$685,000

3 bd · 2 ba · 2,100 sqft

Adobe casita near Santa Fe, NM 87501

Est. Year 1 Deduction

$140k–$181k

~$52k–$67k federal savings @ 37%

Get DepreciMax Breakdown On This Property →

High — Santa Fe

$1,100,000

4 bd · 3 ba · 3,200 sqft

Home near Tesuque, NM 87574

Est. Year 1 Deduction

$224k–$290k

~$83k–$107k federal savings @ 37%

Get DepreciMax Breakdown On This Property →

How to use this data to underwrite a Santa Fe STR deal

The market-median numbers on this page are a screening tool, not a final answer. Here's how STR investors and their CPAs actually convert a market rank + median bonus-eligible % into an underwriting number for a specific offer.

1. Screen the deal against the market median. If a Santa Fe listing is priced within the p25–p75 range ($484k–$878k) and looks like a typical historic STR, the market-median 23.4% bonus-eligible is a defensible screening estimate. That gives you a Year-1 deduction range you can plug into an initial underwriting model in about 60 seconds — before you invest CPA time or offer-drafting effort.
2. Adjust up or down based on amenity signals. Santa Fe properties with a full outdoor stack trend toward the Diamond tier at 24%+ bonus-eligible. Properties with minimal outdoor amenities — condos, plain subdivision homes without hot tubs / decks / fire pits — trend toward the Bronze tier at 18–20%. Use the amenity checklist to categorize before you commit.
3. Model the offer with the deduction baked in. Take the estimated Year-1 deduction × your federal marginal rate (typically 37% for high-earner STR investors) = federal tax savings. Add this to your effective Year-1 cash-on-cash return. On a $685k Santa Fe STR at 23.4% bonus-eligible, that's ~$59k in federal savings plus ~$8k in New Mexico state savings at 5.9% top marginal.
4. Verify with a $99 property-level report before you sign. Once you're past screening and preparing to make an offer, run the specific property through DepreciMax's photo-analysis pipeline. The $99 report tightens the estimate to a single number, line-items the 5-year / 15-year / 39-year breakdown, and delivers a calibrated Year-1 number closely calibrated to a formal cost segregation study's bonus-eligible %. Your CPA can build the return directly from this output; a formal engineered study (typically $5,000–$8,000) is only necessary post-closing for IRS-defensible filing on very large deductions or high-scrutiny audit risk.

For further reading on the pre-offer bonus-depreciation workflow, see how to use §168(k) before closing on a short-term rental. To catch missed prior-year bonus depreciation using Form 3115, see the Form 3115 catch-up guide.