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Deposits

Security deposit law in New Mexico

New Mexico's cap, return deadline, itemization rule, and wrongful-withholding penalty, with the controlling statute linked.

4 min read

Short answer

New Mexico caps a security deposit at one month's rent, and the deposit must be returned within 30 days. Wrongful withholding exposure is forfeit deductions plus $250 and fees. The controlling text is N.M. Stat. § 47-8-18, verified July 2026; confirm the current statute before acting, since legislatures amend deposit law and cities layer stricter rules on top.

One month's rent. The return rule is 30 days. The controlling text is N.M. Stat. § 47-8-18.

Shared move-in, deduction, and refund workflow: the national state-law hub.

New Mexico's deposit ceiling

One month's rent.

For a lease of less than one year the cap is one month's rent. For a lease of a year or more there is no dollar cap, but any deposit over one month's rent must earn the tenant annual interest.

New Mexico's return deadline

30 days.

You have 30 days after the tenancy ends to return the deposit or deliver a written itemized statement of deductions along with any balance.

The itemized statement rule

A written itemized list of deductions is required within 30 days, and failing to provide it forfeits your right to keep any of the deposit and can add a $250 penalty.

Account and interest rules

Where a deposit on a year-or-longer lease exceeds one month's rent, you must pay the tenant annual interest equal to the passbook rate; otherwise no separate-account rule applies.

Exposure for wrongful withholding

Forfeit deductions plus $250 and fees.

A landlord who fails to provide the itemized statement forfeits the deductions, owes the deposit, and can be liable for a $250 civil penalty plus attorney fees. The written statement inside 30 days is the whole defense.

Compare New Mexico with neighboring states

  • Colorado: two months' rent; return rule: 30 days.
  • Oklahoma: no statutory limit; return rule: 30 days after demand.
  • Texas: no statutory limit; return rule: 30 days.
  • Arizona: one and a half months' rent; return rule: 14 business days.
  • Utah: no statutory limit; return rule: 30 days.

Verified against N.M. Stat. § 47-8-18 and official state sources in July 2026. Before withholding money, check the current statute text or ask a local landlord-tenant attorney. General information, not legal advice.

Questions landlords actually ask

Does New Mexico cap residential security deposits?
One month's rent. For a lease of less than one year the cap is one month's rent. For a lease of a year or more there is no dollar cap, but any deposit over one month's rent must earn the tenant annual interest.
What is the security deposit return deadline in New Mexico?
30 days. You have 30 days after the tenancy ends to return the deposit or deliver a written itemized statement of deductions along with any balance.
What itemization does New Mexico require?
A written itemized list of deductions is required within 30 days, and failing to provide it forfeits your right to keep any of the deposit and can add a $250 penalty.
What is the wrongful-withholding exposure in New Mexico?
Forfeit deductions plus $250 and fees. A landlord who fails to provide the itemized statement forfeits the deductions, owes the deposit, and can be liable for a $250 civil penalty plus attorney fees. The written statement inside 30 days is the whole defense.