NMSA § 47-8-18: New Mexico security deposit rules in plain English
What NMSA § 47-8-18 says about New Mexico security deposits: the cap, the deadline to return the deposit, itemized deductions and interest. Every fact below comes from our statute-checked data. Last verified 2026-10-22.
Quick answer
- Return deadline
- 30 days
- Counted from the later of the day the lease ends or the day you move out. A refund and itemized statement mailed to your last known address within 30 days counts as on time.
- If the landlord misses the 30 days, they lose the right to keep any part of the deposit and must pay your court costs and attorney's fees; keeping it in bad faith adds a $250 penalty.
- Maximum deposit
- If the rental agreement is for less than one year, the deposit may not exceed one month's rent. For an annual (one-year) agreement the statute sets no cap, but if the deposit is more than one month's rent the owner must pay the resident annual interest (passbook savings rate) on it. Prepaid last month's rent is not a deposit.
- Itemized list
- Yes, an itemized list of deductions is required
- Interest
- Only where the agreement is annual and the deposit exceeds one month's rent (47-8-18(A)(1)): the owner must pay annual interest equal to the passbook rate. No interest on deposits up to one month's rent.
What NMSA § 47-8-18 says, as we verified it
Deposit limit
If the rental agreement is for less than one year, the deposit may not exceed one month's rent. For an annual (one-year) agreement the statute sets no cap, but if the deposit is more than one month's rent the owner must pay the resident annual interest (passbook savings rate) on it. Prepaid last month's rent is not a deposit.
Interest
Only where the agreement is annual and the deposit exceeds one month's rent (47-8-18(A)(1)): the owner must pay annual interest equal to the passbook rate. No interest on deposits up to one month's rent.
Full citation: NMSA 47-8-18(A)-(E) Read the official text
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FAQ: NMSA § 47-8-18
How long does a landlord have to return a deposit under NMSA § 47-8-18?
Under NMSA § 47-8-18, a New Mexico landlord has 30 days to return the security deposit or send an itemized list of deductions. Counted from the later of the day the lease ends or the day you move out. A refund and itemized statement mailed to your last known address within 30 days counts as on time. If the landlord misses the 30 days, they lose the right to keep any part of the deposit and must pay your court costs and attorney's fees; keeping it in bad faith adds a $250 penalty.
Is there a limit on the security deposit in New Mexico?
If the rental agreement is for less than one year, the deposit may not exceed one month's rent. For an annual (one-year) agreement the statute sets no cap, but if the deposit is more than one month's rent the owner must pay the resident annual interest (passbook savings rate) on it. Prepaid last month's rent is not a deposit.
Does New Mexico require an itemized list of deductions?
Yes, an itemized list of deductions is required. Citation: NMSA 47-8-18(A)-(E).
Does the landlord have to pay interest on the deposit in New Mexico?
Only where the agreement is annual and the deposit exceeds one month's rent (47-8-18(A)(1)): the owner must pay annual interest equal to the passbook rate. No interest on deposits up to one month's rent.
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Scan my New Mexico leaseGeneral information only, not legal advice. Last verified 2026-10-22. Laws change; verify with the linked source or a licensed attorney.