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H.R. 3110Active in CommitteeMixed Sector ImpactHousing and Community Development

Strips Tax Breaks from Wall Street Funds Owning 50+ Single-Family Homes

Eliminates mortgage and depreciation tax write-offs for mega-funds buying up starter homes, while rewarding them if they sell houses back to first-time buyers.

Official Congressional Title (End Wall Street Housing Monopoly & First-Time Homebuyer Act)

To amend the Internal Revenue Code of 1986 to deny depreciation and interest deductions for institutional investors owning more than 50 single-family residential homes, and to provide a tax credit for first-time homebuyers purchasing divested properties.

Sponsor:Rep. Ro Khanna (D-CA)
Cosponsors (52 total):
38 Dem•14 Rep
Bipartisan Consensus Score62/100
Legislative Status Tracker (Latest Action: 2026-10-19)
Introduced
In Committee
Passed 1 Chamber
Passed Both
Signed into Law

Latest: Subcommittee on Housing and Insurance held bipartisan hearing on institutional single-family ownership.

The Plain-English Breakdown

In many neighborhoods across America, families trying to buy their first starter home find themselves outbid by giant Wall Street investment funds paying all cash and turning the houses into rentals. Right now, those giant funds get big tax write-offs for 'depreciation' and interest on every house they buy. This bill takes away those tax write-offs for any corporation or fund that owns more than 50 single-family houses (so mom-and-pop landlords with a few rental homes aren't hurt). Even better, if a Wall Street fund sells one of its houses to a regular family buying their first home, the bill gives a tax break to help close the deal.

What Actually Changes in Real Life If Passed

  • Takes away interest and depreciation tax deductions from corporate landlords owning more than 50 single-family houses.
  • Protects small mom-and-pop landlords who own fewer than 50 rental homes.
  • Exempts homebuilders who build brand-new houses so housing construction doesn't slow down.
  • Creates a $10,000 tax credit to help first-time homebuyers purchase homes being sold off by corporate landlords.

Clause-by-Clause: Official Verbiage vs. Plain English

Side-by-side translation of the bill's key statutory sections

Sec. 2 — 50-Home Cap on Corporate Tax Write-OffsTax Penalty
📜 Official Statutory Verbiage

“In the case of any applicable institutional taxpayer who owns more than 50 single-family residential properties, no deduction shall be allowed for interest or depreciation.”

✨ Plain-English Translation

Once a corporate fund owns more than 50 houses, it loses the ability to write off mortgage interest and building depreciation on its taxes.

Sec. 3 — Build-to-Rent (New Construction) Safe HarborNew Supply Carve-Out
📜 Official Statutory Verbiage

“Paragraph (a) shall not apply to any residential property originally constructed by or on behalf of the taxpayer and placed in service after the date of enactment.”

✨ Plain-English Translation

If a company actually builds brand-new houses (adding to the housing supply) instead of buying up existing starter homes, it keeps its normal tax deductions.

Who Wins / Benefits

First-Time Homebuyers & Mom-and-Pop Landlords

Reduces all-cash institutional competition for starter homes while leaving small landlords untouched.

Public Homebuilders (D.R. Horton, Lennar)

The 'new construction' safe harbor forces institutional capital to fund brand-new home construction rather than bidding on existing MLS listings.

Who Pays / Loses

Single-Family Rental REITs & Private Equity Funds (Invitation Homes, American Homes 4 Rent)

Loses depreciation shields and debt tax deductions on existing single-family acquisition portfolios.

Market & Public Equity Impact

Sectors, ETFs, and public companies exposed to this legislation

Mixed Sector Impact

Bearish for existing single-family rental REITs (INVH); constructive for new-construction homebuilders (DHI, LEN) due to the Build-to-Rent safe harbor.

INVHInvitation Homes Inc.
NEGATIVE

Largest public single-family rental REIT (~85,000 homes); losing depreciation and interest deductions on existing acquisitions pressures FFO.

AMHAmerican Homes 4 Rent
WATCH

Pressured on existing home acquisitions, though partially cushioned by its large internal Build-to-Rent development pipeline.

DHID.R. Horton Inc.
POSITIVE

America's largest starter-home builder benefits from the new-construction safe harbor and $10,000 first-time buyer credit.

Rider & Hidden Pork Detector

Checks for unrelated attachments, earmarks, or omnibus logrolling

Rider Complexity14/100

Targeted housing tax bill; the 'Build-to-Rent' carve-out is a deliberate policy choice (supported by homebuilders) to prevent a drop in new housing starts.