New Mexico Security Deposit Law
A 2026 guide for New Mexico landlords: how much you can hold, the 30-day deadline to return it, whether interest is required, and the penalties for getting it wrong — plus a free calculator set to New Mexico's rules.
Deposit cap
1 month's rent for leases under 1 year (no statutory cap for longer leases)
Refund deadline
30 days
Interest required?
No
Interest is required only on deposits held more than 1 year, at a statutory rate for longer-term leases.
Separate account?
Not required
Penalty for noncompliance
Bad-faith retention can result in actual damages plus statutory penalties.
Statute: N.M. Stat. § 47-8-18
New Mexico security deposit refund calculator
Pre-set to New Mexico's 30-day deadline. Enter the deposit and any deductions to see the refund and the exact due date.
Itemized deductions
Result
$1,500.00
Amount owed back to the tenant
- Deposit held
- $1,500.00
- Total deductions
- −$0.00
Legal deadline in New Mexico
Return the deposit (or an itemized statement of deductions) within 30 days of move-out.
How to return a security deposit in New Mexico
- 1
Inspect and document the unit
As soon as the tenant moves out, photograph every room and compare it against the move-in condition. In New Mexico, deductions generally must reflect actual damage beyond normal wear and tear.
- 2
Itemize every deduction in writing
List each deduction with a dollar amount. New Mexico — like nearly every state — can bar a landlord from keeping any of the deposit if deductions aren't itemized in a written statement.
- 3
Confirm no interest is required
Interest is required only on deposits held more than 1 year, at a statutory rate for longer-term leases. That means you generally return the deposit minus documented deductions, with no added interest.
- 4
Return the balance within 30 days
Send the remaining balance and the itemized statement to the tenant's forwarding address within 30 days of move-out. Missing this deadline is the single most common way landlords lose a deposit dispute.
New Mexico security deposit FAQ
How much can a landlord charge for a security deposit in New Mexico?
1 month's rent for leases under 1 year (no statutory cap for longer leases).
How long does a landlord have to return a security deposit in New Mexico?
A landlord generally has 30 days after the tenant moves out to return the deposit or send an itemized statement of deductions.
Is interest required on security deposits in New Mexico?
Interest is required only on deposits held more than 1 year, at a statutory rate for longer-term leases.
Does New Mexico require the deposit to be held in a separate account?
New Mexico does not impose a statewide separate-account requirement, though keeping deposits separate is still good practice.
What happens if a landlord wrongfully withholds a deposit in New Mexico?
Bad-faith retention can result in actual damages plus statutory penalties.
Related free tools
Deposit laws in other states
This page summarizes general state-level rules as of 2026 and does not cover city or county ordinances, which can be stricter. Verify against the statute cited above (N.M. Stat. § 47-8-18) or with a local attorney before relying on it.