Florida Amendment 3: Boca Raton Housing Impact

By Joseph Hillner

Monday, October 12, 2026

FLORIDA REAL ESTATE NEWS • OCTOBER 2026

Could Florida Amendment 3 Raise Rents?

What Boca Raton homeowners, buyers, renters and investors should know about proposed Florida property tax changes.

By Joseph Hillner
Broker Associate | Guaranteed Home Sales
October 12, 2026

Could a property tax break for Florida homeowners create higher expenses for renters?

That's the question at the center of a new housing study examining Florida Amendment 3, a proposed constitutional amendment scheduled for the November 3, 2026, election.

The proposal could provide significant property tax relief to qualifying homeowners. However, a study highlighted by WESH suggests rental property owners might experience higher tax expenses under certain circumstances.

For residents of Boca Raton, Delray Beach, Boynton Beach, Highland Beach, Deerfield Beach and Palm Beach County, understanding the potential changes is especially important.

THE KEY TAKEAWAY

Amendment 3 could lower certain property taxes for qualifying homeowners. But if local governments increase property tax rates to replace lost revenue, rental property expenses could rise. Higher rents are possible, not guaranteed.

What Is Florida Amendment 3?

Florida Amendment 3 proposes expanding the homestead exemption that applies to non-school property taxes on qualifying primary residences.

If voters approve the amendment, the proposed exemption amounts would be:

2027: $150,000 homestead exemption for non-school property taxes.

2028: $250,000 homestead exemption for non-school property taxes.

Future years: Inflation adjustments to the expanded exemption.

Non-homestead property: Annual assessed-value growth cap reduced from 10% to 5%.

School property taxes: Not reduced by the expanded exemption.

The proposal primarily benefits eligible owner-occupied properties. Ordinary investment properties and second homes generally do not qualify for the homestead exemption.

The proposal also includes specific eligibility provisions for newly established homesteads, making it important for future buyers to verify their potential benefits.

Why Could Renters Face Higher Housing Costs?

A September 2026 analysis by property tax researcher Jared Walczak examined how rental properties could be affected if local governments replaced lost homestead-related property tax revenue entirely by raising property tax rates.

Under that scenario, the study estimated the following statewide annual property tax increases in 2028:

$406

Average Apartment Unit

Projected annual property tax increase per unit in 2028.

$1,081

Average Single-Family Rental

Projected annual property tax increase per property in 2028.

Source: Florida Housing Coalition, September 2026. These figures represent a modeled property tax scenario, not guaranteed rental increases.

Higher operating expenses can put financial pressure on landlords, who may attempt to recover part of those costs through rent adjustments.

However, the rental market ultimately influences what landlords can charge. Competition, tenant demand, lease conditions and local supply all play important roles.

Important: A $406 increase in property taxes does not mean every apartment renter will automatically pay $406 more in annual rent.

What Does Amendment 3 Mean for Boca Raton?

Boca Raton has a combination of primary residences, luxury homes, condominiums, apartment buildings and rental investments.

Because these properties are taxed differently, the financial impact of Amendment 3 could vary considerably.

For Homeowners

Eligible primary-residence homeowners could benefit from lower non-school property taxes, potentially reducing annual ownership expenses.

For Renters

Renters do not directly qualify for the homestead exemption. If rental property operating expenses increase, some landlords may seek higher rents, depending on market conditions.

For Real Estate Investors

Rental property investors may need to account for potential changes in property tax expenses when evaluating cash flow, investment returns and acquisition opportunities.

Palm Beach County Could Face a Significant Revenue Change

Palm Beach County has published estimates examining how Amendment 3 might affect local government finances.

$233.3 Million

Potential Annual General Fund Property Tax Revenue Reduction

Palm Beach County estimate once Amendment 3 is fully implemented.

The county could need to evaluate spending priorities and revenue options if the proposal passes.

The ultimate impact on local services, fees and tax rates would depend on future government decisions.

This matters for residents of Boca Raton, Delray Beach, Boynton Beach and other Palm Beach County communities because local government budgets help fund services and infrastructure that support neighborhoods.

What Does This Mean for Homebuyers?

If you're currently renting and thinking about purchasing a home in South Florida, potential property tax savings could affect the financial comparison between renting and owning.

But the correct decision still depends on your overall housing budget.

Before purchasing, evaluate:

  • Mortgage payments and financing costs.
  • Estimated property taxes after purchase.
  • Homeowners and flood insurance where applicable.
  • HOA and condominium fees.
  • Maintenance, repairs and potential assessments.
  • Homestead exemption eligibility and timing.

A property's existing tax bill may differ from what a buyer owes after closing. Reviewing a realistic estimate is essential.

Could Amendment 3 Affect Home Sellers?

Lower ownership expenses could make certain homes more appealing to buyers, but that does not mean property values will automatically increase.

The Boca Raton real estate market is influenced by many factors, including mortgage rates, available inventory, insurance costs, comparable sales and property condition.

For anyone considering selling in Boca Raton or Delray Beach, understanding today's market value and developing a realistic pricing strategy remain important.

What Should South Florida Real Estate Investors Consider?

For rental property investors, property taxes can have a meaningful impact on cash flow.

If tax expenses increase without corresponding revenue growth, net operating income can decline.

Investors evaluating properties in Boca Raton, Deerfield Beach, Boynton Beach or surrounding areas should consider alternative expense scenarios before making purchasing decisions.

The proposed lower assessment growth cap for non-homestead property is another important factor, but its benefit may be affected by future millage-rate changes.

Could Amendment 3 Influence Future Home Values?

Potentially, but no specific effect on home prices can currently be confirmed.

Lower ownership expenses might support buyer affordability in some market segments, while increased investor expenses could affect rental property valuations.

Future home prices will also depend on interest rates, insurance premiums, housing supply, buyer demand and the broader economy.

Frequently Asked Questions

Will Amendment 3 eliminate Florida property taxes?

No. The proposal increases certain homestead exemptions for non-school taxes. School property taxes would remain.

Will rents increase in Boca Raton?

Not necessarily. Any increases would depend on local government decisions, property owner expenses and rental market conditions.

Could Boca Raton homeowners save money?

Qualifying homeowners could see reductions in certain property taxes. Savings depend on eligibility, assessed value and local tax rates.

Does Amendment 3 affect investment properties?

Yes. The proposal changes the non-homestead assessment growth cap, while future tax rate adjustments could affect operating costs.

When will voters decide?

November 3, 2026. The amendment requires at least 60% voter approval statewide.

The Bottom Line for South Florida Real Estate

Florida Amendment 3 could create meaningful tax savings for some homeowners while introducing potential financial challenges for rental property owners and local governments.

But the actual consequences will depend on whether the amendment passes, how local governments respond and the circumstances of each property.

Whether you're buying, selling or investing in Boca Raton and surrounding South Florida communities, understanding the full cost of real estate ownership is essential.

SOUTH FLORIDA REAL ESTATE GUIDANCE

Questions About Your Home's Value or Your Next Move?

Get personalized guidance about buying, selling or investing in Boca Raton, Delray Beach and Palm Beach County.

Joseph Hillner

Broker Associate | Guaranteed Home Sales

CALL 954-951-9365

Boca Raton • Delray Beach • Highland Beach • Deerfield Beach • Palm Beach County

Sources & Further Reading

WESH: Amendment 3 Study and Florida Renters

Florida Housing Coalition: Study Findings

Palm Beach County: Official Amendment 3 Information

This article is provided for educational purposes only and is not tax, legal or financial advice. Amendment 3 remains a proposed ballot measure as of October 12, 2026. The study's estimates are conditional projections, not guaranteed tax or rent changes. Consult qualified professionals for property-specific advice.

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