According to the United States Census Bureau, the town has a total area of 0.95 square miles (2.45 km2), all land.

[4] The city is in the valley of Whitewater Creek, a seasonal south-flowing tributary of the Mimbres River.

New Mexico State Road 356 leads northeast from Bayard 5 miles (8 km) up the Whitewater Creek valley to Hanover.

Bayard is located in the southern foothills of the Pinos Altos Range and Mogollon Mountains in the southwestern portion of New Mexico and situated east of the Continental Divide at an elevation of approximately 5,800 feet (1,800 m).

A semi-arid desert of predominantly grasses and yucca is in Bayard's southern portion.