New Mexico Rent Increase Calculator 2025 Local Only
Statutory cap, exemptions, and notice rules under Santa Fe City Code § 14-8 (Affordable Housing Act, 2023)
If you rent or own a unit in New Mexico, the rent-increase rule depends entirely on which city you're in. New Mexico has no statewide rent cap, so for most of the state a landlord may raise rent by any amount when a lease renews. The single exception is the capital: under Santa Fe City Code § 14-8 (Affordable Housing Act, 2023), covered Santa Fe rentals may not be increased by more than 3% per year.
That makes New Mexico a "local-control" state rather than a capped state. Outside Santa Fe, the amount of an increase is left to the market and the lease, with average rent in the state running about $925. Albuquerque has debated rent stabilization but has not adopted it, so its tenants currently have no percentage ceiling. The sections below lay out exactly who is covered, what falls outside the Santa Fe ordinance, and the default rule that applies to everyone else.
Which New Mexico cities regulate rent
Only one jurisdiction in New Mexico places a numeric ceiling on rent increases: Santa Fe. Its rent-stabilization rule lives in Santa Fe City Code § 14-8, the Affordable Housing Act adopted in 2023, and it limits annual increases on covered units to 3% flat.
No other New Mexico city has an enforceable cap. Albuquerque, the state's largest rental market, has discussed rent stabilization but has not enacted an ordinance, which means Albuquerque landlords and tenants operate under the unregulated statewide default. If you are negotiating a renewal, the first question is simply whether the property sits inside Santa Fe city limits and meets the ordinance's coverage rules. If it does not, no percentage limit applies.
What's covered vs. market-rate in Santa Fe
The Santa Fe 3% cap does not reach every unit in the city. The ordinance carves out specific categories that remain effectively market-rate:
- New construction, buildings get a 10-year exemption, so newly built rentals can raise rent freely during that window.
- Single-family homes, detached single-family rentals fall outside the stabilization rule.
The practical effect is that the 3% ceiling concentrates on older, multi-unit rental housing rather than newer or single-family stock. If your unit is a new building still inside its 10-year window or a single-family home, the cap likely does not apply to you even though it sits in Santa Fe. Confirm the unit's construction date and type before assuming you are protected.
The rule everywhere else in New Mexico
Outside Santa Fe, New Mexico imposes no limit on how much a landlord may raise rent. There is no statewide percentage cap, no inflation formula, and no maximum dollar amount, the increase is whatever the lease and the market support. With statewide average rent near $925, an increase is constrained only by what tenants in a given area will pay.
What state law does still govern is process, not amount. A landlord must wait until the current lease term ends (or follow the notice terms written into a month-to-month agreement) and provide proper written notice before a new rate takes effect. So while the size of an increase is unregulated for most of the state, the timing and notice mechanics under the lease and New Mexico's landlord-tenant statutes still apply.
Recent legislative activity
The most significant recent development is Santa Fe's 2023 adoption of rent stabilization through City Code § 14-8, which made it the only New Mexico jurisdiction with a hard cap on increases. That move reflects local action rather than a statewide shift.
At the larger-city level, Albuquerque has debated whether to follow Santa Fe's lead but has not passed a rent-stabilization measure, leaving its market unregulated for now. Because rent policy in New Mexico is being decided city by city, landlords and tenants should track their own municipality's council agenda rather than assume a single statewide answer. The current landscape: a 3% cap in Santa Fe, ongoing debate in Albuquerque, and no limit anywhere else.
Key Rules Summary
| Rule | Requirement | Source |
|---|---|---|
| Statewide cap | None | Santa Fe City Code § 14-8 (Affordable Housing Act, 2023) |
| 2025 maximum increase | No limit | |
| Notice required | Typically 30-60 days written notice | State landlord-tenant law |
| Retaliation prohibited | Yes, increases cannot be retaliatory or discriminatory | Federal Fair Housing Act + state law |
Units Exempt from the Cap
Even where a cap applies, the following unit types are typically not covered:
- New construction (10-year exemption)
- Single-family homes
If your unit is exempt, the landlord may raise rent to any market-rate amount with proper notice.
Cities with Local Rent Control Ordinances
These New Mexico cities currently have or are actively developing rent stabilization ordinances. Caps and covered-unit definitions vary, check your city's municipal code or housing authority for the current allowable increase.
Frequently Asked Questions
How much can a landlord raise the rent in New Mexico?
It depends on the city. In Santa Fe, covered units are limited to a 3% annual increase under City Code § 14-8. In the rest of New Mexico, including Albuquerque, there is no cap, so a landlord can raise the rent by any amount at lease renewal.
Is rent control legal in New Mexico?
New Mexico has no statewide rent control, but it permits local action. Santa Fe used that authority to enact rent stabilization in 2023 through Santa Fe City Code § 14-8, capping increases at 3% a year. Other cities, such as Albuquerque, have debated but not adopted similar rules.
What notice is required before a rent increase in New Mexico?
A landlord cannot raise rent mid-lease. The increase can only take effect at renewal or, for a month-to-month tenancy, after proper written notice under the lease and New Mexico's landlord-tenant law. Santa Fe's ordinance also limits the amount to 3% on covered units, but the notice mechanics still come from your agreement and state law.
Does the Santa Fe rent cap apply to my unit?
Not always. The 3% cap excludes single-family homes and new construction (a 10-year exemption from the building's completion). If your Santa Fe rental is a new building still in that window or a detached single-family home, the cap likely does not apply. Outside Santa Fe, no cap applies at all.
This summary is based on Santa Fe City Code § 14-8 (Affordable Housing Act, 2023) and New Mexico landlord-tenant statutes; statewide average rent reflects U.S. Bureau of Labor Statistics CPI rent data, and local enforcement is administered by the City of Santa Fe and overseen statewide by the New Mexico Regulation and Licensing Department. Last reviewed June 2026. This information is provided for general educational purposes and is not legal advice; consult a New Mexico attorney or your local housing office about your specific situation.
Related Guides for New Mexico Landlords
Rent Increase Laws in Other States
Statutory data sourced from published New Mexico law (Santa Fe City Code § 14-8 (Affordable Housing Act, 2023)), BLS Consumer Price Index (2024-2025), and state agency publications. Census ACS 2023 5-Year Estimates for average rent. Last updated August 28, 2026. This page is informational only and does not constitute legal advice.