The rule in New Mexico
New Mexico limits a residential security deposit to 1 month's rent on rental agreements shorter than one year; a larger deposit on an annual agreement earns interest. The wording in N.M. Stat. Ann. § 47-8-18(A), (C): “Under the terms of a rental agreement of a duration less than one year, an owner shall not demand or receive from the resident such a deposit in an amount in excess of one month's rent.”
The return deadline is 30 days, counted from the end of the rental agreement or the tenant's departure, whichever is later. The text reads: “within thirty days of the date of termination of the rental agreement or resident departure, whichever is later.”
Of the 44 jurisdictions verified here, 15 give landlords less time and 9 give more; the median is 30 days. 19 others also allow 30 days, among them Iowa, Kansas, Maine and Massachusetts.
What the cap means in dollars: $1,000 rent: up to $1,000, $1,500 rent: up to $1,500 and $2,000 rent: up to $2,000.
Worked date: if the clock starts on November 30, 2026, the deadline falls on December 30, 2026.
In neighbouring states with verified rules: Arizona allows 14 business days and caps deposits at one and a half months' rent, Oklahoma allows 45 days and sets no cap, Texas allows 30 days and sets no cap and Utah allows 30 days and sets no cap.
On an annual rental agreement the statute does not cap the deposit, but a deposit above one month's rent earns the tenant annual interest (§ 47-8-18(A)(1)).
An owner who misses the 30 days forfeits the right to withhold any part of the deposit (§ 47-8-18(D)).
If a deposit is not returned, the small claims limit in New Mexico is $10,000 (small claims rules); at the cap, a full-deposit claim fits whenever rent is $10,000 a month or less.
Source: New Mexico Compilation Commission, NMSA 1978 Chapter 47 (§ 47-8-18) · last checked October 21, 2026.
If the deposit does not come back
The statute above sets the deadline; what happens after it passes is covered in general terms in the guide on a deposit that is not returned, and the way each state starts and counts the clock is compared in how deposit deadlines are counted.
Questions
How much can a landlord charge as a security deposit in New Mexico?
1 month's rent on rental agreements shorter than one year; a larger deposit on an annual agreement earns interest, under N.M. Stat. Ann. § 47-8-18(A), (C).
How long does a landlord in New Mexico have to return a deposit?
30 days: “within thirty days of the date of termination of the rental agreement or resident departure, whichever is later” (N.M. Stat. Ann. § 47-8-18(A), (C)).
When does the New Mexico deadline start?
The clock runs from the end of the rental agreement or the tenant's departure, whichever is later.