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Could a Smaller Number on Your Ballot Mean a Bigger Surprise on Your Tax Bill?
Pull out your latest TRIM notice and find the assessed value of your rental. Now imagine that number could only climb half as fast each year. Sounds like an easy win, right? For many South Florida landlords, it could be. But the full story is more complicated than the headline.
On November 3, 2026, Florida voters will decide on Amendment 3, a proposed constitutional change that would lower the annual assessment-growth cap for non-homestead properties, including long-term rentals, from 10% to 5%. It would also expand homestead exemptions, shrinking the local tax base and potentially pushing local governments to look elsewhere for revenue.
At Rovira Property Management, our experienced team helps rental owners across Miami-Dade, Broward, and Palm Beach Counties protect their investments through every market shift and policy change. Below, we break down what the 5% cap would and wouldn't do for your rental, and how to plan either way.
Key Takeaways
It's not law yet: Amendment 3 is on the November 3, 2026 ballot, needs at least 60% voter approval, and would take effect January 1, 2027.
The cap would tighten: Annual assessed-value increases on non-homestead properties, including long-term rentals, would be limited to 5% instead of 10%.
A cap isn't a tax cut: Your final bill still depends on millage rates, fees, and the school district portion, which the current cap doesn't cover.
Costs could shift: State economists estimate nearly $12 billion in lost recurring local revenue, which governments may offset through higher millage rates or new fees.
Planning beats guessing: Budget conservatively, review your assessment yearly, and price rents on market data rather than expected tax savings.
How Florida's Non-Homestead Cap Works Today
Florida has capped assessment increases on non-homestead property since voters approved the limit in 2008. According to the Miami-Dade Property Appraiser, the cap applies automatically, limits yearly assessed-value growth to 10%, and excludes School Board assessments.
That distinction matters. Your market value and your assessed value aren't the same number. When Miami home values jump sharply, the cap keeps your assessed value from following at full speed, at least for county and city levies.
The Cap Resets When Ownership Changes
The non-homestead cap resets after a change in ownership or control. If you buy a rental next year, the property generally starts over at market value before the cap kicks in again. Investors in Miami-Dade, Broward, and Palm Beach should factor this into acquisition math no matter how Amendment 3 turns out.
What Amendment 3 Would Change for Rental Owners
The official ballot summary from the Florida Department of State confirms the amendment would cut the annual cap on assessment increases for non-homestead properties from 10% to 5%. That covers single-family rentals, investment condos, small multifamily buildings, second homes, and commercial property.
Slower Assessment Growth, More Predictability
In a fast-appreciating market like South Florida, a 5% ceiling could meaningfully slow how quickly your taxable value rises. Over several years, that compounding difference adds up, and it makes long-term expense forecasting easier.
Owners who have held properties for years could see the gap between market value and assessed value widen further, which may help cash flow.
Homestead Changes That Still Affect Landlords
Amendment 3 would also raise the homestead exemption for non-school taxes to $150,000 in 2027 and $250,000 in 2028. Rental properties don't qualify for that exemption, but it still affects you. When a large share of the tax base becomes exempt, the remaining taxable property can end up carrying more of the load.
Why the 5% Cap Doesn't Guarantee Savings
This is where many owners get tripped up. The assessment cap limits one piece of the formula, not your final bill. Your property tax equals taxable value multiplied by the millage rate, and local governments set millage every year.
The Revenue Gap Has to Be Filled Somewhere
Florida's Office of Economic and Demographic Research estimated the amendment would reduce local property tax revenue by nearly $12 billion on a recurring basis. Counties and cities could respond by adjusting millage rates, fees, or service levels.
The Florida Policy Institute's Amendment 3 voter guide warns this could shift costs toward non-homestead properties like rental units. Supporters, meanwhile, point to greater predictability for property owners. Both outcomes are possible, and local decisions will shape the real impact.
School Taxes Sit Outside the Current Cap
Under current rules, the school district portion of your bill isn't covered by the non-homestead cap, so that slice tracks closer to market value. Don't assume a 5% figure would apply across your entire tax bill. Your county property appraiser can clarify how any new cap would be applied.
What Amendment 3 Means for Tenants and Rents
Experts caution that the cap doesn't guarantee direct rent relief for tenants. Miami rents are driven by supply, demand, insurance premiums, HOA dues, and maintenance costs, not property taxes alone. If local governments raise millage rates or add fees, some landlords could face higher carrying costs even with slower assessment growth.
For you, that means rent decisions should stay grounded in real market data. A smart rental marketing and pricing strategy keeps your unit competitive and occupied, which protects income far more than any single tax change.
How Miami Landlords Can Prepare Now
You don't need to wait for election results to act. A few steps today can put you in a stronger position either way.
Review Your Assessment Every Year
Check your TRIM notice each August for accuracy. Because capped growth builds on the prior year's assessed value, catching an error early keeps it from carrying forward.
Budget for Multiple Scenarios
Model your expenses assuming modest assessment growth and a possible millage increase. Clear, detailed owner financial reporting makes it easier to see how taxes affect your returns month to month.
Keep Your Rental Performing
Strong tenants and low vacancy are your best hedge against rising costs. Thorough tenant screening and proactive rental property maintenance help you keep good residents and avoid expensive turnovers.
If you'd rather have experts handle the details, our full-service Miami property management covers everything from leasing to accounting. You can also review our transparent property management pricing.
Frequently Asked Questions
Is Florida's 5% non-homestead cap already in effect?
No. Amendment 3 goes before voters on November 3, 2026, and needs at least 60% approval to pass. If approved, it would take effect January 1, 2027. Until then, the 10% cap remains in place.
Will my rental property taxes go down if Amendment 3 passes?
Not necessarily. The cap slows assessed-value growth, but your bill also depends on millage rates, fees, and school district taxes. If local governments raise rates to replace lost revenue, some owners could see limited savings or even higher bills.
Should I lower my rent if my property taxes grow more slowly?
That's your decision, but rent should follow market conditions. Property taxes are just one of many costs, alongside insurance, HOA dues, and repairs. A local property manager can help you review comparable rentals before adjusting your pricing.
Stay Ahead of Amendment 3 With a Local Partner on Your Side
Amendment 3 could slow how quickly your rental's assessed value climbs, but a lower cap isn't the same as a lower bill. How local governments respond will determine the real impact, so savvy owners are planning for both outcomes.
Rovira Property Management helps landlords across Miami-Dade, Broward, and Palm Beach Counties stay informed, budget wisely, and keep rentals profitable. See what owners say in our client testimonials, then call us at +1 (888) 669-0096 or Contact Us to schedule a consultation.
This article is for informational purposes only and is not tax or legal advice.
