New Mexico enacted temporary rent stabilization in 2025, capping increases at 3% for July 2025-June 2026 and 5% annually thereafter. This applies statewide to most residential tenancies under HB 442, marking a shift from prior no-cap rules.
Key Provisions
Landlords may raise rent only once per 12 months, based on March 1, 2025 rates for the initial cap. Increases require 30 days’ written notice for under 10% hikes or 60 days for more, even post-caps—though caps limit amounts. Fixed-term leases bar mid-term hikes unless specified; month-to-month follows notice rules.
Exceptions target mobile home parks, pending workgroup input, and exempt new tenancies or substantial renovations. Violations risk tenant lawsuits for overcharges plus damages.
Notice Requirements
Written notice must detail the new amount and effective date, delivered personally or by mail. Retaliatory hikes (e.g., post-maintenance requests) violate protections, allowing tenants to challenge via attorney general complaints. For community developers or youth programs, this aids stable housing amid economic pressures.
Santa Fe ties minimum wages to rents locally, but state law governs caps. No 2026 extensions announced yet; monitor legislature.
Tenant Rights
Tenants can negotiate, document communications, or seek legal aid from New Mexico Legal Aid. Prohibited hikes trigger refunds and penalties up to three times overcharges. Fair Housing Act bars discrimination via selective increases.
Landlords justify hikes with market data, but caps curb gouging in Albuquerque hotspots.
Landlord Obligations
Comply via clear leases specifying adjustment clauses. Post-hike audits protect against disputes. For construction pros renting worker housing, caps stabilize costs.
| Period | Max Increase | Notice | Exceptions |
|---|---|---|---|
| Jul 2025-Jun 2026 | 3% | 30/60 days | Mobile homes, new leases |
| After Jun 2026 | 5% annual | Same | Renovations >$X |
| Pre-2025 | No cap | Lease terms | N/A |
Enforcement and Future
Attorney General enforces via investigations; tenants sue in magistrate court. HB 442 sunsets absent renewal, potentially reverting to free-market hikes. Wellness and education content should highlight rights for vulnerable groups.
SOURCES:
- https://www.nmlegis.gov/Sessions/25%20Regular/bills/house/HB0442JCS.HTML
- https://www.steadily.com/blog/how-much-can-a-landlord-raise-rent-in-new-mexico)
