State Law Guide · Updated January 2026

New Mexico Security Deposit Laws

Under New Mexico Statutes § 47-8-18, New Mexico landlords must return security deposits within 30 days of a tenant moving out. Landlords who wrongfully withhold deposits face penalties of up to Actual damages plus court costs.

Quick Answer

In New Mexico, landlords have 30 days to return your security deposit after you move out and provide a forwarding address. The maximum deposit is 1 month's rent (leases under 1 year); no limit for longer leases. If your landlord wrongfully withholds your deposit, you can sue in Small Claims Court (up to $10,000) and may recover Actual damages plus court costs under New Mexico Statutes § 47-8-18. Landlords must provide an itemized statement of deductions.

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What New Mexico Law Requires

Return Deadline

Landlords have exactly 30 days to return your deposit after you move out. If they make deductions, they must provide an itemized statement explaining each charge with documentation.

Penalties for Violations

Landlords who wrongfully withhold deposits face Actual damages plus court costs. You can file in small claims court for amounts up to $10,000without needing an attorney.

Interest Requirements

Only if landlord agrees in writing; then no deposit cap

Common Deductions Landlords Make

Federal guidelines from HUD and the IRS establish "useful life" standards that limit what landlords can charge. Many common deductions are partially or fully invalid under these guidelines.

Carpet Replacement

Typical: $400-1,400

5-year useful life per HUD MAP Guide Appendix 5C. Charges may be reduced or invalid based on how long you lived there.

Evaporative Cooler

Typical: $100-400

10-year useful life per IRS Publication 527. Charges may be reduced or invalid based on how long you lived there.

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Our tool analyzes your landlord's deductions against New Mexico Statutes § 47-8-18 and federal HUD guidelines, then generates a formal demand letter you can send immediately.

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HUD/IRS Citations

Useful life depreciation built in

$19 · Avg New Mexico deposit: $1,050 · Potential 55x return

Frequently Asked Questions

How long does a New Mexico landlord have to return my deposit?

New Mexico landlords have 30 days to return your deposit with an itemized statement of deductions.

What is the deposit limit in New Mexico?

For leases under 1 year: 1 month's rent. Longer leases: no limit unless landlord agrees to pay interest.

What if my New Mexico landlord doesn't return my deposit?

You can sue in Small Claims Court (Magistrate Court) for up to $10,000 to recover your deposit plus court costs.

City-Specific Rules

Some New Mexico cities have additional tenant protections:

  • Albuquerque: Additional tenant resources through city housing programs.

Official Resources

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Based on New Mexico Statutes § 47-8-18 · HUD Handbook 4350.1 · IRS Publication 527

Disclaimer: This page provides general information about New Mexico security deposit laws and is intended for educational purposes only. It is not legal advice. Laws may change, and individual circumstances vary. Consult a licensed attorney for advice specific to your situation.

Last updated: January 2026. Sources: New Mexico Statutes § 47-8-18, HUD Handbook 4350.1, IRS Publication 527.