We examined Burrowing Owl (Athene cunicuaria) reproductive success at 144 nests in urban (n  =  80) and grassland (n  =  64) habitats in southern New Mexico in 2000 and 2001. Nest success was higher in grassland compared to urban areas (81 vs. 68%) but urban landscapes fledged more young per successful nest (3.85 vs. 3.07). Mean fledging success per nest was similar between habitats with 2.60 and 2.50 fledglings in urban and grassland habitats, respectively. Fledging success was categorized as failure, low, and high. Reproductive success in both habitats was associated with measures of owl density. High success in urban landscapes was associated with fewer surrounding nests, an index of larger nesting territories, and open space. Failure was associated with solitary nests. This suggests owls benefit from the presence of other nesting pairs as long as the density is not too high. High success in grassland habitats was associated with fewer surrounding nests, index of larger nesting territories, edge nests, and lower fledgling success of the nearest nest. Higher nest success, but fewer fledglings per successful nest, suggests competition for resources in this habitat.