Florida Amendment 3 could raise rental costs, study finds

Florida voters are currently weighing the implications of Amendment 3, a proposed property tax overhaul that aims to increase affordability for homeowners. However, a recent study by tax policy consultant Jared Walczak warns that the legislation could have unintended consequences for the rental market. Because the amendment focuses on homesteaded properties, investment properties—which are not owner-occupied—could face significant tax hikes as local governments seek to offset lost revenue.

The study estimates that if local governments raise tax rates to fill budget gaps, annual property taxes on apartment units could rise by an average of $406 statewide by 2028. Specific regions, such as Lee, Collier, and Charlotte counties, are projected to see notable increases, with Broward County also expected to face significant pressure due to its reliance on homesteaded property tax bases.

For landlords and property managers, this shift represents a potential increase in operating expenses that may be difficult to absorb. Experts suggest that many property owners will likely pass these inflated tax bills directly to tenants in the form of higher rent, potentially exacerbating the existing housing affordability crisis across the state.