New Mexico Security Deposit Law
What landlords in New Mexico need to know about deposit limits, refund deadlines, interest, and penalties for getting it wrong.
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
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 or with a local attorney before relying on it. See all states.