Hillsboro, IN Security Deposit Laws 2026
Indiana limits security deposits to 2 month(s) of rent. In Hillsboro, that's $1,912 at the median 2BR rent of $956/month. Miss the 45-day return deadline and you could owe $1,912+.
In Indiana, landlords must return security deposits within 45 days after move-out. The maximum deposit is 2 month(s) of rent. Failure to return on time or provide an itemized statement can result in penalties of $1,912 or more.
This applies to properties in Hillsboro, IN. Check all requirements for your property →
Key Takeaways — Hillsboro Security Deposit Laws
- Maximum deposit: 2 month(s) of rent = $1,912 at Hillsboro's median rent
- Return deadline: 45 days after tenant moves out
- Penalty for late return: Up to 2x the deposit ($1,912)
- Itemized statement: Required with any deductions
Security Deposit Laws in Hillsboro
Under Indiana law, landlords in Hillsboro may collect a maximum security deposit of 2 month(s) of rent. At Hillsboro's median 2-bedroom rent of $956/month, that means the most you can legally collect is $1,912.
$1,912
max deposit (2mo × $956)
45 days
return deadline
$1,912
max penalty for late return
Returning the Deposit: The 45-Day Clock
Once a tenant moves out of your Hillsboro rental, Indiana law gives you exactly 45 days to either return the full deposit or provide an itemized statement of deductions. The clock starts on the day the tenant surrenders possession — not when you inspect the unit.
What you can deduct from a security deposit in Hillsboro:
- Unpaid rent
- Damage beyond normal wear and tear
- Cleaning costs to restore the unit to move-in condition
- Costs for restoring or replacing personal property (if lease allows)
What you cannot deduct:
- Normal wear and tear (minor scuffs, carpet wear, faded paint)
- Pre-existing damage (document with photos at move-in)
- Professional cleaning if the tenant left the unit in reasonable condition
Penalty Warning
Violate Indiana security deposit laws rules in Hillsboro and you could owe $1,912+. At Hillsboro's median rent of $956/month, even a single violation adds up fast.
Hillsboro Rental Market Context
Hillsboro is the 411th-largest city in Indiana (population 506). With a median 2-bedroom rent of $956/month, it falls in the budget range for Indiana rental costs — 5% below the state median of $1,008/month.
How Hillsboro Compares in Fountain County
Hillsboro ranks #5 of 8 cities in Fountain County by population. Because security deposit laws rules are often tied to rent amounts, costs vary across the county.
| City | Population | Median Rent | Max Deposit |
|---|---|---|---|
| Attica | 3,230 | $956/mo | $1,912 |
| Covington | 2,733 | $956/mo | $1,912 |
| Veedersburg | 2,085 | $956/mo | $1,912 |
| Kingman | 566 | $956/mo | $1,912 |
| Hillsboro | 506 | $956/mo | $1,912 |
| Newtown | 218 | $956/mo | $1,912 |
| Mellott | 171 | $956/mo | $1,912 |
| Wallace | 79 | $956/mo | $1,912 |
Rents based on HUD Fair Market Rents (FY2026) for Fountain County, Indiana. All cities follow Indiana state law unless a local ordinance applies.
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How Hillsboro Rents Affect Deposit Amounts
Deposit amounts scale with local rents. Here's what Hillsboro landlords typically collect:
| Unit Size | Median Rent (Hillsboro) | Max Deposit (2mo) | Penalty Risk |
|---|---|---|---|
| Studio | $685/mo | $1,370 | $2,740 |
| 1-Bedroom | $729/mo | $1,458 | $2,916 |
| 2-Bedroom | $956/mo | $1,912 | $3,824 |
| 3-Bedroom | $1,178/mo | $2,356 | $4,712 |
Rents based on HUD Fair Market Rents (FY2026) for Fountain County.
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Security Deposit Laws in Nearby Cities
Own properties in multiple cities? Rules may differ locally:
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Download Free ChecklistReviewed by Rachid Abadli
Founder & CEO, LeaseBase · Sacramento landlord · Self-managing since 2019
LeaseBase is a property management platform — not a law firm. Consult an attorney for legal advice specific to your situation.
