Security deposit interest in New Mexico

Verified against N.M. Stat. Ann. § 47-8-18(A) and agency sources on 2026-07-04. Not legal advice.

Conditionally required

New Mexico requires deposit interest only in specific situations.

Applies when: annual (1-year or longer) rental agreement where the deposit exceeds one month's rent
Rate: Interest equal to the passbook interest rate permitted to savings and loan associations (statute references an abolished federal board, so no official current percentage is published; prevailing local passbook savings rates are used in practice)
Paid: annually
Statute: N.M. Stat. Ann. § 47-8-18(A) · primary source

Deposits on leases under 1 year are capped at one month's rent (so the interest trigger cannot arise).

Security deposit interest calculator

State

Deposit amount ($)

Years held

Annual rate (%) prefilled from the state rule where published

Frequently asked questions

Do landlords have to pay interest on security deposits in New Mexico?

Only in certain cases: annual (1-year or longer) rental agreement where the deposit exceeds one month's rent. Interest equal to the passbook interest rate permitted to savings and loan associations (statute references an abolished federal board, so no official current percentage is published; prevailing local passbook savings rates are used in practice) (N.M. Stat. Ann. § 47-8-18(A)).

When must deposit interest be paid in New Mexico?

Annually.

Anything else New Mexico landlords should know about deposit interest?

Deposits on leases under 1 year are capped at one month's rent (so the interest trigger cannot arise).

Deposit interest in other states

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