New Mexico Deposit Interest Rules
interest required (amounts over 1 month on longer leases)New Mexico is one of 14 US jurisdictions that require landlords to pay interest on security deposits in covered rentals — the FAQ below covers which tenancies qualify. If your lease is silent about interest, the statutory obligation still applies where it covers you.
Educational information: generated from our New Mexico law database (last updated 2024-01-01). Not legal advice.
How New Mexico compares
14 of 51 US jurisdictions require landlords to pay interest on security deposits. Here is how New Mexico compares with other states in our database.
| State | Deposit Interest Rules |
|---|---|
| New Mexico | interest required (amounts over 1 month on longer leases) |
| New York | interest required (buildings with 6+ units) |
| North Carolina | no interest required |
| North Dakota | interest required (leases of 9+ months) |
| Ohio | interest required (excess amounts, tenancies of 6+ months) |
Frequently asked questions
- Do landlords have to pay interest on security deposits in New Mexico?
- Yes — New Mexico law requires interest on held security deposits for amounts over 1 month on longer leases. Maximum 1 month rent for leases under 1 year. No limit for 1 year+ leases but interest required on amount exceeding 1 month. Return within 30 days. Bad faith retention: $250 penalty.
- How large can the deposit itself be in New Mexico?
- New Mexico generally allows at most 1 month's rent (leases under 1 year) as a security deposit.
- When do I get my security deposit back in New Mexico?
- Generally within 30 days after move-out, together with any interest owed.
Check Your Lease Against New Mexico Law
Not sure whether your lease complies with New Mexico law? Upload it and our analyzer flags problem clauses — deposit terms, entry rights, fees and prohibited provisions — using the same statute-backed database this page is generated from.
Analyze My Lease FreeEducational tool — not legal advice. First analysis is free, no signup required.
More New Mexico lease law guides
Educational information generated from state statute data — not legal advice. Consult a licensed attorney in New Mexico for your specific situation.