As housing affordability remains a persistent challenge across Texas, the One Big Beautiful Bill Act (OBBBA) delivers targeted relief to homebuyers, property owners, renters and real estate professionals—especially in fast-growing regions like Fort Worth. The legislation, supported by the Greater Fort Worth Association of REALTORS® (GFWAR) and aligned with the National Association of REALTORS®, takes aim at long-standing barriers to homeownership by addressing key financial and tax-related hurdles.
Restoring Key Homeownership Tax Deductions
One of the most immediate impacts of the OBBBA is the restoration and extension of the mortgage insurance premium deduction, a major benefit for first-time and low-down-payment homebuyers. Many buyers put down less than 20%, triggering private mortgage insurance (PMI), which can cost between $1,500 and $3,000 annually. Making these costs tax-deductible reduces the effective financial burden of homeownership, saving buyers potentially $2,000 or more each year.
In addition, the OBBBA permanently extends the mortgage interest deduction on home loans up to $750,000, ensuring a broader range of middle- and upper-middle-income buyers continue to benefit. As home prices in Fort Worth have risen over the past decade, these deductions will help offset higher borrowing costs and improve after-tax affordability.
Higher SALT Deduction Cap Brings Property Tax Relief
Another high-impact provision raises the federal cap on state and local tax (SALT) deductions from $10,000 to $40,000, phased out only for incomes above $500,000. This increase brings welcome relief to Texans, who have some of the highest property taxes in the nation.
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With property taxes in the DFW area rising nearly 50% since 2017, this change allows many homeowners to fully deduct their property tax payments for the first time in years. The result is lower federal tax liability, improved monthly affordability and greater borrowing capacity for prospective homebuyers.
Tax Credits Expand Affordable Housing Options
While not directly aimed at individual homeowners, the OBBBA significantly expands the federal government’s role in stimulating affordable rental housing, a critical step in alleviating overall market pressure.
Key provisions include:
• A 12% permanent increase in the Low-Income Housing Tax Credit (LIHTC) 9% allocation, expected to finance roughly 80,000 additional affordable units per year through 2035.
• A reduction in the required private-activity bond financing threshold from 50% to 25%, making many more developments eligible.
• The New Markets Tax Credit (NMTC) made permanent at $5 billion annually, supporting housing and economic development in underserved areas.
These measures are especially relevant in Fort Worth, where rental prices have strained affordability for entry-level buyers. Access to affordable rentals helps reduce demand pressure on starter homes and allows more low-income households to save for down payments.
1031 Like-Kind Exchanges Preserved for Real Estate Investors
The Act also safeguards Section 1031 like-kind exchanges, a keystone of real estate investment, allowing investors to defer capital gains taxes when reinvesting in similar property. There is no cap on this provision, and it maintains full access with no new limitations.
This is particularly important in redevelopment corridors, where aging commercial properties are being converted into residential or mixed-use developments. Preserving 1031 exchanges ensures investment continues to flow into transitional areas, supporting housing growth and revitalization.
Bottom Line: A Strong Step Forward for Housing Affordability and Access
While the OBBBA does not resolve every issue facing Texas housing markets, it delivers a combination of near-term affordability improvements and long-term supply solutions. GFWAR believes the legislation strengthens the foundation for middle-class homeownership and diverse housing supply in the Fort Worth region.
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