New Mexico Security Deposit Law (2026): Deadlines, Interest & Penalties
Wondering when your New Mexico security deposit is due back? The statute — N.M. Stat. § 47-8-18 — sets the return window at 30 days from the end of your tenancy, and the landlord must pay interest of Interest (passbook rate) required if deposit > 1 month rent on annual lease in certain situations (interest (passbook rate) required if deposit > 1 month rent on annual lease). If the money doesn't arrive on time, the exposure for the landlord is $250 civil penalty + actual damages. The calculator above works out your deadline, interest, and penalty figures automatically.
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New Mexico Deposit Rules at a Glance
| Return deadline | 30 days after move-out Standard deadline applies. |
|---|---|
| Interest on deposit | Conditional — Interest (passbook rate) required if deposit > 1 month rent on annual lease Interest (passbook rate) required if deposit > 1 month rent on annual lease |
| Separate account required | No |
| Deposit limit | 1 month's rent for leases under 1 year; larger allowed on annual leases (triggers interest) |
| Penalty for violations | $250 civil penalty + actual damages |
New Mexico Security Deposit FAQ
How long does a landlord have to return a security deposit in New Mexico?
In New Mexico, a landlord must return the security deposit within 30 days after the tenancy ends, under N.M. Stat. § 47-8-18. Note: Standard deadline applies..
Does my landlord owe me interest on my security deposit in New Mexico?
Under N.M. Stat. § 47-8-18, a New Mexico landlord must pay interest of Interest (passbook rate) required if deposit > 1 month rent on annual lease in certain situations (interest (passbook rate) required if deposit > 1 month rent on annual lease). Rate details: Interest (passbook rate) required if deposit > 1 month rent on annual lease.
What is the penalty if a landlord misses the deposit deadline in New Mexico?
$250 civil penalty + actual damages. The governing statute is N.M. Stat. § 47-8-18.
Is there a limit on how much a landlord can charge as a security deposit in New Mexico?
Yes. In New Mexico, the security deposit is limited to 1 month's rent for leases under 1 year; larger allowed on annual leases (triggers interest).
Does a New Mexico landlord have to keep my deposit in a separate account?
No. New Mexico law does not require landlords to hold security deposits in a separate or escrow account.
Are there exceptions to the 30-day deposit deadline in New Mexico?
Yes — the deadline can vary: Standard deadline applies.. When in doubt, check the statute itself (N.M. Stat. § 47-8-18) or ask a local tenant-rights organization.
When does the interest requirement apply in New Mexico?
Interest applies under these conditions: Interest (passbook rate) required if deposit > 1 month rent on annual lease. See N.M. Stat. § 47-8-18 for the full rule.
What can I do if my landlord won't return my deposit in New Mexico?
First, send a written demand letter citing N.M. Stat. § 47-8-18 — our free generator creates one with your amounts filled in. If the landlord still doesn't pay, you can usually file in small claims court, where the penalty exposure is $250 civil penalty + actual damages.