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States/New Mexico/Deposit Interest
✓ New Mexico official sources verified

New Mexico Annual Lease Security Deposit Interest Rule

New Mexico allows a larger deposit under an annual rental agreement, but § 47-8-18 requires annual interest when the owner demands or receives more than one month’s rent as the deposit.

Last reviewed: August 30, 20261 official source cited
Lease typeAnnual rental agreement

Different from the under-one-year cap.

TriggerDeposit > 1 month

The statute then requires annual interest.

Records to compare

  • Annual lease.
  • Original deposit amount.
  • Rent amount used for comparison.
  • Any annual interest payment or accounting.
Check the exact lease term and dates. New Mexico deposit limits differ by rental-agreement duration, and the accounting rule has specific timing language. Educational information only.

Official sources

New Mexico Regulation and Licensing DepartmentNew Mexico Real Estate License Law & Rules — Owner-Resident Relations ↗

Official state publication reproducing NMSA 1978 § 47-8-18, including deposit limits, normal-wear rule, 30-day accounting and remedies.

Related New Mexico guides

Security Deposit →Short-Term Deposit Limit →30-Day Rule →Normal Wear →