Ruidoso, NM. Sponsored Topics. Ruidoso is a village in Lincoln County, New Mexico, United States, adjacent to the Lincoln National Forest. The population was 8,029 at the 2010 census. The cities of Ruidoso Downs, Hollywood, Mescalero, and Alto are suburbs of Ruidoso and contribute to the Ruidoso Micropolitan Statistical Area's population of 21,223.