Updated for 2026

New Mexico Security Deposit Laws & Calculator

New Mexico gives landlords 30 days to return your deposit and caps it at 1 month's rent for leases under a year. The state's unique penalty structure includes a $250 civil penalty and the landlord forfeits the right to withhold or counterclaim — a powerful deterrent against bad actors.

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New Mexico Security Deposit — Quick Facts

Return Deadline
30 Days
Maximum Deposit
1 Month's Rent
Leases under 1 year
Penalty for Late Return
$250 + Forfeiture
Loses right to withhold
Interest Required
✗ No
Applicable Law
N.M. Stat. § 47-8-18
Unique Penalty — Forfeiture of Counterclaim: New Mexico's penalty is unlike most states. If your landlord fails to return the deposit or provide an itemized statement within 30 days, they face a $250 civil penalty and — critically — they forfeit the right to withhold any portion of the deposit or make a counterclaim against you. This means even if there was legitimate damage, a non-compliant landlord loses the ability to argue for deductions in court.

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Enter your deposit amount and move-out date to see your landlord's deadline and total refund.

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New Mexico Security Deposit Law — Explained

The 30-Day Return Deadline

Under N.M. Stat. § 47-8-18, landlords must return the security deposit within 30 days after the lease terminates and the tenant vacates. The landlord must also provide an itemized list of any deductions. Failure to meet this deadline triggers the state's penalty provisions.

Deposit Cap for Short-Term Leases

For leases under 1 year, New Mexico caps the security deposit at 1 month's rent. There is no statutory cap for leases of 1 year or longer, though landlords must still act reasonably. If your lease is month-to-month or less than 12 months, your landlord cannot charge more than one month.

What Your Landlord Can Deduct

Landlords may deduct for unpaid rent and damage beyond normal wear and tear. They must provide a written, itemized statement of deductions within the 30-day window. Normal wear and tear — minor scuffs, faded paint, carpet worn from regular use — cannot be charged to the tenant.

The $250 Penalty and Forfeiture Rule

New Mexico's penalty structure is unique. A landlord who fails to return the deposit or provide an itemized statement within 30 days faces a $250 civil penalty plus court costs. More importantly, the landlord forfeits the right to withhold any portion of the deposit or assert a counterclaim against the tenant. This is a powerful tool — even if there was real damage, a non-compliant landlord cannot argue for deductions in court.

What to Do If Your Landlord Won't Return Your Deposit

  1. 1
    Document everything before you leave Take timestamped photos and video of every room. Keep your lease and all communications.
  2. 2
    Provide your forwarding address in writing Make sure your landlord knows where to send the deposit. Use certified mail or email with a read receipt.
  3. 3
    Wait 30 days, then send a demand letter Use RenterCalc's demand letter generator citing N.M. Stat. § 47-8-18. Remind the landlord they face a $250 penalty and forfeiture of counterclaim rights.
  4. 4
    File in small claims court New Mexico's small claims limit is $10,000. You can recover the full deposit, the $250 civil penalty, and court costs.

New Mexico Security Deposit FAQ

How long does a landlord have to return a security deposit in New Mexico?
New Mexico landlords must return the deposit within 30 days after the lease terminates and the tenant vacates.
What is the maximum security deposit in New Mexico?
1 month's rent for leases under 1 year. There is no statutory cap for leases of 1 year or longer.
What is the penalty for not returning a security deposit in New Mexico?
A $250 civil penalty plus court costs. The landlord also forfeits the right to withhold any portion of the deposit or make a counterclaim.
Does New Mexico require interest on security deposits?
No. New Mexico does not require landlords to pay interest on security deposits.
How do I get my security deposit back in New Mexico?
Document the unit, provide a forwarding address, wait 30 days, send a demand letter citing § 47-8-18, and file in small claims court (limit: $10,000) if unresolved.

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