HOMES Act

The HOMES Act disallows tax deductions for interest and depreciation on single-family rental properties owned by large-scale investors. Specifically, it prohibits deductions for taxpayers owning 50 or more single-family rental properties (defined as properties with 4 or fewer units), effective for taxable years after enactment. Exceptions apply when such properties are sold to individuals for primary residence use or to qualified nonprofit housing organizations (like community land trusts or affordable housing nonprofits). The bill targets tax benefits currently available to institutional landlords, aiming to redirect incentives toward affordable housing solutions. These changes affect only large-scale rental property owners, not individual landlords or small investors.