The Stop Wall Street Landlords Act of 2026: Explained

Overview: Stop Wall Street Landlords Act of 2026

The Stop Wall Street Landlords Act of 2026 is a proposal focused on large investors that buy, hold, and sell one-to-four unit homes in the United States. It uses tax changes and resale rules to reduce advantages that can make it easier for large investors to compete for homes.

The bill targets investors with more than $100,000,000 in net assets, including related entities counted together. It also adds limits in the mortgage secondary market by restricting new activity by Fannie Mae, Freddie Mac, and Ginnie Mae when the mortgagee is one of these large investors.

The bill’s main changes generally start eighteen months after enactment, which creates a transition period before the new rules apply. Note that bills often change on their way to becoming law, so this page will update as new details emerge. For real-time updates, subscribe to our newsletter.

What Is the Stop Wall Street Landlords Act of 2026?

The Stop Wall Street Landlords Act of 2026 would change the rules for certain large investors that own or sell one-to-four unit homes. The bill does this in three main ways:

• Limits certain tax deductions and depreciation tied to covered homes
• Adds a large excise tax when covered investors sell or transfer a covered home
• Restricts new secondary-market activity for mortgages held by covered investors

The overall goal is to reduce financial advantages that can make large investors more competitive than home buyers shopping for similar properties.

Who Qualifies Under the Stop Wall Street Landlords Act of 2026?

The bill is aimed at large investors, not individual home buyers. A covered investor is generally defined as an investor with net assets over $100,000,000.

The bill also counts controlled groups together, which means related companies can be treated as a single investor for the net-asset test. This approach is meant to capture larger investment platforms that operate through multiple entities.

How The Stop Wall Street Landlords Act of 2026 Works

Tax Treatment For Covered Investors

After the effective date, covered investors would no longer be able to claim certain tax benefits for covered one-to-four unit homes in the United States, including:

• Deductions for mortgage interest and mortgage insurance
• Depreciation on the covered homes

These limits apply only to the large investors covered by the bill, not to typical homeowners using a mortgage to buy a primary residence.

Excise Tax On Sales Or Transfers

The bill would impose an excise tax equal to one hundred percent of the sale price when a covered investor sells or transfers a covered one-to-four unit home, as long as the sale or transfer happens after the effective date.

This is designed to discourage covered investors from buying and then selling covered homes in a way that competes with households looking for places to live.

Exceptions And Exclusions

The bill includes exceptions and exclusions that narrow which properties and transactions are covered.

Exceptions include:

• The investor’s principal residence
• Homes the investor originally built
• Homes the investor substantially rehabilitated

The bill also excludes certain types of properties from the definition of covered homes. Federally assisted buildings, Low-Income Housing Tax Credit (LIHTC) properties, and bond-financed buildings are excluded under the bill’s definition.

These carve-outs are meant to avoid interfering with specific housing programs and with construction or major renovation activity.

Timing: When Changes Start

The bill’s key provisions generally apply starting eighteen months after enactment, including:

• The limits on deductions and depreciation
• The excise tax on sales or transfers

That eighteen-month window is part of the bill design, and it affects when market behavior would be expected to change.

Limits In The Mortgage Secondary Market

The bill would also restrict new secondary-market activity involving certain mortgages where the mortgagee is a covered investor.

As written in the bill’s key points:

• Fannie Mae and Freddie Mac would be barred from new purchases involving these mortgages
• Ginnie Mae would be barred from new guarantees or securitization involving these mortgages

This section is aimed at limiting new access to common channels that can support large-scale mortgage financing.

Who Sponsors the Stop Wall Street Landlords Act of 2026?

H.R. 7138 is a House bill in the 119th Congress. Sponsor and cosponsor details can change as the bill moves through Congress and gains support.

For the latest legislative updates and cosponsors, see the Bill Tracker above.