A single number should catch every Miami rental owner's attention right now: 5%. That's the new cap on annual assessment growth for non-homestead property, down from the current 10% ceiling, starting January 1, 2027.
For landlords, vacation rental owners, and commercial property investors, that shift could reshape how tax bills grow year over year.
Here's what actually happened in Tallahassee, what it means for rental portfolios across Miami-Dade, and what to plan for heading into 2027. Keep reading.
Key Takeaways
- The Florida Legislature passed HJR 1F during a June 1-3, 2026 special session, consolidating earlier competing bills into one measure
- The non-homestead assessment cap drops from 10% to 5% starting January 1, 2027
- The homestead exemption rises from $50,000 to $150,000 in 2027, then $250,000 in 2028
- Estimated local government revenue impact ranges from about $4.6 billion to over $11 billion annually depending on the source
What Is HJR 1F and Why Rental Owners Should Pay Attention
Property tax reform had a bumpy road in 2026. During the regular legislative session, House committees pushed through a batch of competing constitutional amendments, including HJR 213 and HJR 203, with committee votes landing around January 22 and 23. None of those bills reached a final vote before the regular session ended in March. A follow-up special session in April didn't even put property taxes on the agenda.
That changed on May 27, when Governor Ron DeSantis called a new special session and introduced a consolidated plan called "Save Our Homes from Excessive Property Taxes," known as HJR 1F. Lawmakers moved fast. During the June 1-3 special session, the House passed it 75-26 and the Senate followed 30-9, folding all the earlier competing proposals into one measure.
What Does HJR 1F Actually Do?
HJR 1F consolidates the earlier competing proposals into one measure with four major changes. It raises the homestead exemption for owner-occupied homes, lowers the assessment-growth cap for non-homestead property, adds a waiting period for new Florida residents claiming the exemption, and carries a real cost to local government budgets.
The next sections break down each one, starting with the change that matters most for rental owners.
The Assessment Cap Cut That Matters Most for Landlords
Here's the provision with the most direct impact on rental portfolios.
What Changes for Non-Homestead Property?
HJR 1F lowers the annual assessment growth cap on non-homestead property from 10% to 5%, starting January 1, 2027. That covers rental homes, vacation properties, apartment buildings, and commercial real estate. This cap operates independently from the homestead exemption increase, and it applies directly to rental, vacation, and commercial property across Miami-Dade.
How Does This Affect Multi-Property Owners?
A tighter cap means slower, more predictable growth in taxable value even when a property's market value jumps in a single year. For owners holding several units across Miami-Dade, that predictability can matter more than the headline percentage.
Here's what it looks like in practical terms:
- A rental property assessed at a value that would have grown 9% under the old cap would instead be limited to 5% growth under the new rule
- Portfolios in fast-appreciating Miami neighborhoods stand to benefit the most from a lower ceiling
- Budgeting for 2027 tax bills becomes more of a math exercise and less of a guessing game once the cap drops
Miami's rental market has seen aggressive value growth over the past several years, so a lower cap on assessment increases could meaningfully change how much cushion owners need to build into next year's budgets.
Not sure how a 5% cap changes your 2027 tax projections? JMK Property Management can walk Miami-Dade rental owners through what the new assessment cap means for their specific properties.
What This Means for Homestead Property Owners
Here's the part of HJR 1F that applies to owner-occupied homes rather than rentals. The homestead exemption increase is only indirectly relevant to rental owners, since it applies to owner-occupied property and rentals don't qualify for homestead status. It could still shift how local governments distribute the tax burden across property types once fewer homeowners are paying into the system.
- Raises the homestead exemption from $50,000 to $150,000 in 2027, then to $250,000 in 2028, eliminating non-school property taxes for an estimated 60% of homesteaded owners, and directs the Legislature to work out a path toward fuller elimination later
- Adds a waiting period before new Florida residents can claim the bigger exemption
- Doesn't apply to rental, vacation, or commercial property, which fall under the separate non-homestead assessment cap
The Bigger Picture: Local Revenue Impact and What It Could Mean Long-Term
Here's why local governments are watching closely too.
Estimates on how much this measure would cost local budgets vary widely depending on the source. Legislative staff initially projected a $4.6 billion hit to local government revenue in year one, growing to $8.4 billion annually.
A later, more complete state estimate put the recurring impact closer to $11.8 to $12 billion a year. That's a significant gap, and it's worth watching how counties and municipalities respond as the changes take effect.
Some may look at millage rate adjustments or other revenue tools to offset the loss, which could ripple into future tax bills regardless of how the assessment cap plays out.
How JMK Property Management Supports Miami Rental Owners Through Tax Uncertainty
Local expertise makes a real difference during a year like this one.
Miami-Dade's rental values have moved fast over the past several years, which makes the shift from a 10% to a 5% assessment cap especially relevant here. JMK Property Management tracks local valuation trends across the neighborhoods it manages, giving owners a clearer picture of how their specific properties might be affected once the new cap takes effect.
Owners managing multiple units often feel legislative changes differently than single-property owners do. JMK works directly with clients to model out tax exposure across a full portfolio and keep an eye on how Miami-Dade's local budget conversations could shape future tax bills.
Here's what that looks like in practice:
- Tracks local valuation trends across Miami-Dade neighborhoods to gauge how the new assessment cap could affect specific properties
- Models tax exposure across multi-property portfolios so owners can budget ahead of 2027, not after
- Monitors local government responses to potential revenue shortfalls, including possible millage rate changes
- Keeps clients informed as local policy shifts unfold
Frequently Asked Questions
Q: When does the new assessment cap take effect?
The 10% to 5% assessment cap reduction for non-homestead property takes effect January 1, 2027.
Q: Does the homestead exemption increase apply to rental properties?
No. It applies only to owner-occupied homestead property. Rental properties fall under the separate non-homestead assessment cap.
Q: What should rental owners do to prepare?
Start modeling tax exposure under the new 5% cap now, and keep an eye on local budget or millage rate responses, since those could shift future tax bills as well.
Preparing Your Rental Portfolio for the 2027 Shift
Florida's property tax landscape is shifting, and rental owners have a clear window to prepare before the new assessment cap takes effect. Understanding what's changing now beats scrambling in January 2027.
That's exactly the kind of groundwork worth doing now, before tax bills and budget season collide. A quick review of your portfolio against the new cap can save hours of guesswork later, and it costs nothing to start the conversation early.
Miami rental owners can reach out to JMK Property Management to talk through what these changes could mean for their specific properties. Contact our team today to get ahead of 2027 before it arrives.
