Amendment 3 Would Cut Florida's Non-Homestead Assessment Cap From 10% to 5% — What It Means for Orlando and Kissimmee Rental Owners

Most of the headlines about Florida's Amendment 3 have focused on homeowners, and for good reason: the measure would dramatically expand the homestead exemption. But buried inside the same proposal is a change that matters far more to the owners we work with every day — the people who hold rental houses, condos and small multifamily buildings in Orlando and Kissimmee.

Here's the part investors should be paying attention to. Amendment 3 would reduce the annual cap on assessment increases for non-homestead properties from 10% to 5%, applying to properties such as rentals, second homes and commercial real estate. That cap governs how fast your taxable value can climb in a single year, regardless of what the market does. For anyone who watched assessments march upward at double-digit clips after the pandemic in-migration wave, cutting that ceiling in half is a meaningful change to the math on a long-term hold.

Florida Realtors, which is backing the measure, argues the lower cap would give owners of rental and commercial property greater predictability, and says that stability can also benefit the tenants and businesses who depend on those properties. That framing deserves a caveat: predictability is not the same as savings. A 5% cap still allows taxable value to rise every year — it simply slows the pace. Owners budgeting for 2027 and beyond should model it as a brake, not a discount.

The homeowner side of the proposal is larger in dollar terms. The measure would increase the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, with annual inflation adjustments beginning in 2029. It would also direct counties and municipalities to use property tax revenue solely for categories including public safety, schools, infrastructure, debt payments and government operations.

Nothing is settled yet. Amendment 3 appears on the Nov. 3 general election ballot, requires approval from at least 60%-plus-one of voters, and would take effect Jan. 1, 2027 if it passes. That 60% threshold is a real hurdle, and opposition from local government and public safety organizations has been vocal, with summer polling showing support softening once voters heard about potential impacts on city and county budgets.

Our advice for Central Florida owners: don't rewrite your 2027 pro forma yet. Build your budget on current assumptions, watch the November result, and revisit your numbers in December. If the amendment passes, the slower assessment growth is a modest tailwind on properties you plan to keep for years — the kind of owner Amendment 3 would help most.