In 2025, New Mexico continues to have no statewide rent control laws, meaning there is no legal cap on how much a landlord can increase rent. Both fixed-term and month-to-month leases are subject to specific notice requirements, but landlords have broad discretion to set and raise rent amounts based on market conditions.
New Mexico law prohibits rent increases based on discriminatory or retaliatory actions, ensuring tenant protections under fair housing laws.
Rent Increase Limits and Frequency Starting July 2025
A significant new regulation effective July 1, 2025, caps rent increases to no more than 3% annually for most residential leases. Additionally, landlords are limited to increasing rent only once in a 12-month period during the term from July 1, 2025, through June 30, 2026. This newly introduced rent stabilization aims to moderate sharp rent hikes while still allowing landlords to adjust rents responsibly.
Notice Requirements for Rent Increases
For month-to-month leases, landlords must provide at least 30 days’ written notice before an increase takes effect if the increase is under 10%.
If a rent increase exceeds 10%, landlords must provide a 60-day written notice.
For fixed-term leases, landlords cannot increase rent during the lease term unless specifically allowed in the lease agreement. Rent increases typically take effect only after the lease expires, requiring tenants be given 30 days’ notice prior to the new lease term.
All notices must be in writing and clearly state the new rent amount and the date it applies.
Key Tenant Protections and Legal Considerations
Rent increases cannot be discriminatory or retaliatory, meaning they cannot be based on race, gender, disability, familial status, or actions like reporting housing code violations.
Landlords must maintain transparency and fairness in rent adjustments to comply with state and federal fair housing laws.
Tenants have the right to contest unlawful rent increases or seek legal counsel if they suspect violations.
New legislation also mandates disclosure of rental fees and limits tenant screening fees to $50, enhancing tenant protections around rental costs.
What Tenants Should Know
Starting July 1, 2025, rent can only be increased once annually and by no more than 3% for the period up to mid-2026.
Tenants must receive proper written notice (30 or 60 days, depending on increase size) before rent increases.
No overall statewide rent control existed before July, but this temporary rent stabilization is a new protective measure.
Fixed-term leases generally prevent rent increases mid-term unless otherwise agreed.
Discriminatory or retaliatory rent hikes are illegal.
Transparency and disclosure of rental fees are strengthened through recent laws.
While New Mexico has historically given landlords wide latitude in rent setting, the new 2025 rent increase limits and notice requirements mark a meaningful step in balancing landlord and tenant interests to promote fair, predictable housing costs.
If you are a tenant receiving a rent increase notice, ensure it meets the legal standards and notice periods, and consult tenant advocacy groups or legal aid if you believe your rights are being violated.
This framework highlights New Mexico’s evolving approach to rent stability and tenant fairness in a challenging housing market.
Sources
[1] https://www.nmlegis.gov/Sessions/25%20Regular/bills/house/HB0442.html
[2] https://www.steadily.com/blog/how-much-can-a-landlord-raise-rent-in-new-mexico
[3] https://nlihc.org/resource/new-mexico-passes-legislation-disclose-and-limit-certain-rental-fees-including-tenant
[4] https://www.hemlane.com/resources/new-mexico-rent-control-laws/
[5] https://www.doorloop.com/laws/new-mexico-landlord-tenant-rights
