New Mexico tenant screening laws

New Mexico is one of the few states with a statutory dollar cap on tenant screening fees. As of a law effective June 20, 2025, owners generally may charge no more than $50, subject to the notice, availability, receipt, and refund conditions above (NMSA 1978 §47-8-19.2). Fee increases for other recurring rental fees generally require at least 60 days' written notice before the next rental period, or one rental period's notice for tenancies shorter than a month (NMSA 1978 §47-8-19.4).

New Mexico's state Human Rights Act prohibits housing discrimination based on race, religion, color, national origin, ancestry, sex, sexual orientation, gender, gender identity, pregnancy/childbirth-related conditions, spousal affiliation, physical or mental disability (where unrelated to the ability to acquire or maintain the property), and military status (NMSA 1978 §28-1-7(G)). Criminal history is not listed as a protected category, and New Mexico has no separate state consumer-reporting lookback limit specific to criminal records in tenant screening. This means criminal history decisions in New Mexico generally fall back on federal Fair Housing Act principles, and the underlying Fair Housing Act statute and case law such as Texas Dept. of Housing & Community Affairs v. Inclusive Communities Project (2015) remain unaffected by federal guidance changes.

New Mexico's Human Rights Act list of protected classes (above) does not include source of income or lawful source of funds. Confirm any local source-of-income or housing-voucher protection against current municipal code before finalizing a screening policy. Individual leases, HUD-assisted properties, or local rules may still apply.

Federal FCRA §615 (15 U.S.C. §1681m) still sets the adverse-action baseline: if a screening report contributes to denying an application, requiring a co-signer, or charging a higher deposit or rent, the landlord generally must send an adverse action notice identifying the reporting agency and the applicant's dispute rights. New Mexico adds a state-specific layer beyond FCRA's adverse-action trigger: owners generally must give every screened applicant — not just those denied — a copy of any report used to screen them (NMSA 1978 §47-8-19.3(B)).

New Mexico's deposit rules depend on lease length. For a rental agreement under one year, the deposit generally may not exceed one month's rent. For an annual (one-year-or-longer) agreement, there is no flat dollar cap, but if the deposit exceeds one month's rent, the owner generally must pay the resident annual interest at the passbook savings rate referenced in the statute (NMSA 1978 §47-8-18(A)) — note that this interest benchmark still refers to a rate set by the "federal home loan bank board," an agency that was abolished in 1989, so how this is applied in practice may vary and is worth confirming with counsel. Deposits generally may not cover normal wear and tear. Within 30 days of termination or the resident's departure (whichever is later), the owner generally must send an itemized list of any deductions and the remaining balance; missing that deadline generally forfeits the owner's right to withhold any deposit or bring a damages claim, and bad-faith retention can trigger a $250 civil penalty (NMSA 1978 §47-8-18(C)–(E)).

New Mexico has no statewide rent cap or rent-control law. For lease violations, owners generally must give a 7-day written cure-or-quit notice on the first violation; a second violation within six months generally allows termination on 7 days' notice without a further cure opportunity. Nonpayment of rent generally requires a 3-day pay-or-quit notice, and tendering full payment within that window generally bars the eviction. A shorter 3-day notice applies to "substantial violations" (for example, violence or certain drug activity), and residents generally have statutory defenses available, including a domestic-violence defense (NMSA 1978 §47-8-33). Retaliatory action by an owner against a resident is also generally prohibited under separate statute (NMSA 1978 §47-8-39).

Albuquerque, Santa Fe, Las Cruces, and Rio Rancho may have local tenant-screening, fair-chance, or source-of-income requirements; confirm current city code before finalizing city-specific claims. New Mexico does not use a "township" system; land outside city limits is generally organized as unincorporated county territory, so confirm any applicable county-level tenant-screening requirements as well.

Is there a cap on tenant screening fees in New Mexico? Yes. As of a 2025 law, owners generally may charge no more than $50 for a screening fee, subject to notice, availability, and refund conditions (NMSA 1978 §47-8-19.2).

Does New Mexico protect housing voucher holders from discrimination? New Mexico has no state-level source-of-income protection, so this generally isn't required statewide.

How much can a New Mexico landlord charge for a security deposit? For leases shorter than a year, the deposit generally can't exceed one month's rent; for annual or longer leases there's no flat cap, but interest generally becomes due once the deposit exceeds one month's rent (NMSA 1978 §47-8-18).

How long does a New Mexico landlord have to return a security deposit? Generally 30 days from termination of the rental agreement or the resident's departure, whichever is later.

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The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.