New Mexico Security Deposit Rules
Landlord obligations under N.M. Stat. Ann. §§ 47-8-18, 47-8-15(D)
Deposit limit
1 month's rent
1 month's rent for leases under 1 year; no cap on annual leases, but amounts over 1 month accrue mandatory annual interest
How the deposit limit varies
| Scenario | Maximum deposit | Condition |
|---|---|---|
| Lease shorter than 1 year | 1 month's rent | — |
| Annual lease (1 year or longer) | No statutory cap | a deposit exceeding 1 month's rent obligates the owner to pay the resident annual interest on it (§ 47-8-18(A)(1)) |
- The interest rate references the passbook rate of the now-defunct federal home loan bank board; the statute (last amended 1989) has not been updated.
Source: N.M. Stat. Ann. § 47-8-18(A) (tiered by lease term), for the figures shown above. This tool is for informational purposes only and does not constitute legal advice. Consult a New Mexico attorney for specific guidance.
Deposit limit verified against N.M. Stat. Ann. § 47-8-18(A) (tiered by lease term) as of Jul 24, 2026.