11/05/2026
🏡 FLORIDA'S AMENDMENT 3 PASSED! HERE'S WHAT IT MEANS FOR HOMEOWNERS AND BUYERS.
Florida voters approved Amendment 3 on November 3rd, and I think one of the biggest conversations we need to have is how this could improve housing affordability, especially here in Palm Bay.
Let's break it down in plain English, with some actual numbers.
✅ WHAT'S CHANGING?
Amendment 3 significantly increases the homestead exemption for property taxes that don't fund schools.
• 2027: The exemption increases to $150,000.
• 2028: It increases to $250,000.
• 2029 and beyond: The exemption adjusts for inflation.
This means qualifying homeowners will pay property taxes on a much smaller portion of their home's assessed value.
School property taxes will still apply.
💰 LET'S TALK REAL NUMBERS IN PALM BAY.
Let's use a $335,000 home as an example.
Assuming the property has an assessed value of $335,000, qualifies for the full homestead exemption, and Palm Bay's 2026 tax rates stay the same:
Under the 2026 rules:
Property taxes: Approximately $5,310/year, or $443/month.
With Amendment 3 in 2027:
Property taxes: Approximately $4,143/year, or $345/month.
✅ Savings of approximately $1,167/year!
With Amendment 3 in 2028:
Property taxes: Approximately $2,960/year, or $247/month.
✅ Savings of approximately $2,351/year compared with the old rules!
That's nearly $196 MORE PER MONTH staying in a homeowner's budget by 2028.
These are illustrations using today's tax rates, not guaranteed future bills. Purchase price and assessed value aren't always the same, and individual exemptions, tax districts and special assessments can change the numbers.
🏠 WHY DOES THIS MATTER FOR FIRST-TIME HOMEBUYERS?
This is the part I'm particularly interested in.
When you apply for a mortgage, lenders don't just consider the principal and interest payment. Property taxes, homeowners insurance, mortgage insurance and other housing costs also factor into qualification.
When property taxes decrease, your monthly housing expense can decrease.
That can mean:
✅ A more affordable monthly payment.
✅ More breathing room in your debt-to-income ratio.
✅ Potentially qualifying for a more expensive home.
✅ More money available for savings, home improvements or everyday living expenses.
Here's another way to look at it:
At an illustrative 6.5% interest rate on a 30-year mortgage, $196 per month is roughly the principal and interest payment on an additional $31,000 in borrowed funds.
That doesn't automatically mean buyers can qualify for $31,000 more. Insurance, taxes on a more expensive property, down payment and lender requirements still matter.
But it shows why even a relatively small reduction in monthly property taxes can make a meaningful difference.
WHAT ABOUT CURRENT HOMEOWNERS AND PEOPLE MOVING TO FLORIDA?
Existing Florida residents can qualify for the increased exemption when they meet the homestead requirements, including residents purchasing their first home.
However, people who were not Florida residents as of December 31, 2026 generally must wait until their fifth year of homestead exemption to receive the larger benefit.
Existing Save Our Homes protections and portability remain in place.
WHAT ABOUT INVESTMENT PROPERTIES AND RENTALS?
There's another change that hasn't received as much attention.
The annual assessment increase cap for non-homesteaded properties, including qualifying rentals, second homes and commercial properties, drops from 10% to 5% for non-school taxes.
That doesn't guarantee a lower tax bill, but it helps limit how quickly assessed values can increase from year to year.
⚖️ ARE THERE ANY DOWNSIDES?
Absolutely, and they're worth discussing.
Local governments rely heavily on property tax revenue for services like roads, law enforcement, fire rescue and other community needs.
Reducing that revenue creates budget challenges. Some communities could respond by adjusting spending, raising certain fees or changing future tax rates.
And for perspective, non-homesteaded properties already accounted for approximately 55.3% of real-property taxes levied in Brevard County and 64.9% statewide in 2024.
It's also important to remember that Amendment 3 does not eliminate school taxes, special assessments, insurance costs or other expenses associated with homeownership.
MY BIGGEST TAKEAWAY?
Housing affordability isn't just about the purchase price of a home.
It's about what a family can comfortably afford every single month.
For buyers who have been right on the edge of qualifying, a lower property tax obligation could create some much-needed breathing room.
For existing homeowners, that's money that can stay in the household budget instead of going toward property taxes.
And for families looking to move into a better home, it could create additional purchasing power.
There are still plenty of affordability challenges in Florida, including interest rates and insurance costs. But reducing one of the major expenses associated with owning a home is a meaningful change.
If you're thinking about buying a home in Palm Bay or anywhere on the Space Coast, let's look at what these changes could mean for your monthly payment and purchasing options.
Donell Knight II
Blue Marlin Real Estate
🌐 SpaceCoastByDonell.com
Sources: Florida Division of Elections, Brevard County Property Appraiser 2026 millage schedule, Florida TaxWatch, Florida Association of Counties, and Fannie Mae Selling Guide.
