What Does Florida Amendment 3 Mean for Rentals, Second Homes and New Florida Residents?
Quick answer
As of October 2026, Amendment 3 would cut the yearly non-school assessment cap on rentals, second homes, commercial property and vacant land from 10% to 5%. People who are not Florida residents on December 31, 2026 would get the larger homestead exemption only from their fifth year of exemption.
| Fact | Figure |
|---|---|
| Non-homestead assessment cap, non-school taxes | 10% a year now; 5% a year if approved |
| Property types covered by the lower cap | Rentals, second homes, commercial buildings, vacant land |
| Larger homestead exemption for non-homestead property | No |
| Not Florida residents on Dec 31, 2026 | Existing exemption first; larger exemption from the 5th year of exemption |
| Larger homestead exemption, non-school taxes | $150,000 in 2027; $250,000 in 2028 |
| Effective date | January 1, 2027 |
| Vote needed | 60% of voters |
Sources: Florida Department of State, 2026 constitutional amendment booklet (updated Sept 3, 2026); Jared Jones – Orlando Living (YouTube), video published Oct 11, 2026.
How would Amendment 3 change taxes on rentals and second homes?
It would lower the cap on how fast a non-homestead property’s assessed value can rise for non-school taxes, from 10% a year to 5% a year, per the ballot summary in the Florida Department of State booklet.
Non-homestead property includes rentals, second homes and vacation homes, commercial buildings and vacant land. Today, its assessed value for non-school levies can rise up to 10% in one year. In the video, Jared explains why that matters in Florida: after a sharp run-up in values, a 10% cap still lets assessed value, and the tax bill, climb quickly. A 5% cap slows that climb. It does not cut the current assessed value, and it does not apply to school taxes. These properties also do not get the larger homestead exemption, which is only for a qualifying primary residence.
Would renters pay less rent if Amendment 3 passes?
Not necessarily. The amendment limits assessment growth for the landlord’s property, but nothing in it requires a landlord to pass any savings to tenants.
In the video, Jared lists renters among the groups he covers, and his point is that the effect on a renter is indirect. Rent is set by each landlord and by the local rental market, including supply, demand, insurance and other costs. A slower-rising tax bill can reduce one cost for an owner, but whether that shows up in a lease renewal is up to the market and the owner. Renters who plan to buy should look at the residency rule below, since it depends on Florida residency on December 31, 2026, not on whether you own a home that day.
What is the five-year rule for new Florida residents?
The ballot summary says persons who are not Florida residents on December 31, 2026 will receive the existing homestead exemption when they qualify, with the increased exemption starting in the fifth year of exemption, to the extent permitted by the U.S. Constitution.
So a buyer who moves to Florida in 2027 and qualifies for a homestead would start with the current exemption, not the larger $150,000 or $250,000 non-school exemption, until the fifth year of exemption. In the video, Jared calls this the rule almost nobody is covering and says a person moving down from another state in 2027 is the group it is squarely aimed at. The phrase “to the extent permitted by the U.S. Constitution” signals that the rule could face legal questions, so treat its final application as uncertain.
What if I already live in Florida but do not own a home yet?
The five-year rule in the ballot summary is tied to Florida residency on December 31, 2026. In the video, Jared treats a long-time Orlando renter who buys a first home next year as a different case from someone moving in from out of state.
Jared walks through several examples: a long-time homesteader moving across town, a local renter buying a first home, a newcomer from another state, and a former resident returning after the cutoff. He says the returning-resident case gets into legal nuance. Because how residency will be proven and applied has not been spelled out by the ballot summary, anyone who is close to the line should keep records of Florida residency, such as a lease, driver license and voter registration, and ask the county property appraiser or a tax attorney how the rule would apply to them.
What should investors and out-of-state buyers do before 2027?
Run the numbers both ways and do not plan around an outcome that has not happened yet. The amendment needs 60% of the vote and, if approved, takes effect January 1, 2027.
For a rental or second home, estimate taxes using the county’s current assessed value, millage and the existing 10% cap, then see how a 5% cap would change future years. For a planned move, check whether you would be a Florida resident on December 31, 2026 and how the five-year rule would affect your first years of homestead. Jared does not frame the decision as a reason to rush. The Jared Jones Team can pull tax histories on specific properties; call or text 407-706-5000.
Frequently asked questions
How does Amendment 3 affect rental property in Florida?
If approved, Amendment 3 would lower the yearly cap on assessed value increases for non-homestead property, including rentals, from 10% to 5% for non-school taxes, per the ballot summary published by the Florida Department of State. It would not lower current assessed value, would not apply to school taxes, and rentals would not get the larger homestead exemption.
Does Amendment 3 help second homes and vacation homes?
Indirectly. Second homes and vacation homes are non-homestead property, so they would get the lower 5% cap on yearly assessed value increases for non-school taxes instead of 10%. They would not get the larger homestead exemption, which only applies to a qualifying primary residence. The change would take effect January 1, 2027 if approved by 60% of voters.
Will Amendment 3 lower my rent?
Not necessarily. Amendment 3 limits how fast a landlord’s assessed value can rise for non-school taxes, but it does not require landlords to pass any savings to tenants. Rent depends on each owner and on local supply, demand, insurance and other costs. Any effect on renters would be indirect and would vary by property and market.
What is the Amendment 3 rule for people moving to Florida?
Per the ballot summary, persons who are not Florida residents on December 31, 2026 would receive the existing homestead exemption when they qualify, and the larger exemption starting in the fifth year of exemption, to the extent permitted by the U.S. Constitution. In his video, Jared Jones says newcomers moving from another state in 2027 are the group this targets.
Does the five-year rule apply to Florida renters who buy later?
The rule in the ballot summary is tied to whether a person is a Florida resident on December 31, 2026, not to home ownership on that date. Jared Jones treats a long-time local renter buying a first home as a different case from an out-of-state newcomer. How residency is proven is not spelled out, so ask your county property appraiser.
When would the Amendment 3 changes take effect?
If at least 60% of voters approve it, Amendment 3 takes effect January 1, 2027, per the Florida Department of State booklet. The larger homestead exemption for non-school taxes would be $150,000 in 2027 and $250,000 in 2028. The lower 5% cap on non-homestead assessment growth would also begin under the amendment if it passes.
Sources
- Florida Department of State: 2026 Constitutional Amendments booklet, Amendment 3 ballot title and summary (updated Sept 3, 2026)
- Florida Department of Revenue: Property Tax Information for Homestead Exemption (PT-112) (current exemption rules)
- Jared Jones – Orlando Living (YouTube): Florida Amendment 3, The Truth About Your Property Tax Bill (published Oct 11, 2026)