Security Deposit Caps Are Falling Across the Country

A clear national trend

Over the past few years, a steady stream of states has cut the maximum security deposit to one month's rent:

• New York — capped at one month under the 2019 HSTPA.
• California — cut to one month under AB 12, effective July 2024 (with a small-landlord exception).
• Maryland — reduced from two months to one, effective October 2024.

These join states like Massachusetts that already limited deposits to a single month. The direction of travel is unmistakable: smaller upfront cushions for landlords.

What it means for you

A smaller deposit means less protection against damage and unpaid rent — so the workarounds matter more:

• Screen harder. With less deposit cushion, tenant quality is your best protection. Run full background, credit, and eviction checks.
• Consider higher-qualified applicants or guarantors where deposits are capped.
• Document move-in condition meticulously so legitimate deductions hold up.

Where deposits are still uncapped

Plenty of landlord-friendly states still set no statutory cap — including Texas, Florida, Illinois, Ohio, and much of the South and Midwest. In those states you have more flexibility, though market norms still apply.

General orientation only — verify the current statute in your state before setting deposit terms.