A Win-Win for Renters and Property Owners: How the One Big Beautiful Bill Helps Twin City Rentals Thrive

A Win-Win for Renters and Property Owners: How the One Big Beautiful Bill Helps Twin City Rentals Thrive

As we settle into summer in the Twin Cities, we’re excited to share how recent federal tax reforms are creating opportunities across Minnesota’s rental market. Signed on July 4, 2025, the One Big Beautiful Bill creates new incentives that help renters gain access to more affordable housing and empower property owners to invest in their communities.

Benefits for Renters — More Affordable Options & Growing Inventory

1. New Affordable Rental Housing Coming Online

  • The bill expands the Low‑Income Housing Tax Credit, projected to produce or preserve over one million affordable rental homes nationwide between 2026 and 2035 (Investopedia).
  • That means more incentives for developers—and more affordable homes available for St. Paul renters in coming years.

2. Mortgage Insurance Deduction Restored

  • Homeownership becomes more accessible thanks to the restored mortgage insurance deduction, which previously helped first-time buyers save an average of $2,364 per tax return (Investopedia).
  • More affordable ownership options can reduce demand pressure on rentals and encourage long-term housing stability.

3. Higher SALT Deduction Caps Benefit High-Taxes States

  • The bracket for the state and local tax (SALT) deduction is increased from $10,000 to $40,000—effective through 2029 (Investopedia).
  • While most impactful in places like New York or California, higher SALT caps help Minnesota households with local property tax burdens—and can generally ease housing cost inflation indirectly.

Benefits for Property Owners — Tax Savings, Cash Flow & Growth

4. Bonus Depreciation & Expensing Revived

  • The legislation restores 100% bonus depreciation through 2029, allowing landlords to fully deduct improvements—like appliances or renovations—immediately, reducing taxable income in early years (Beyond Pricing).
  • Strategic upgrades now can lead to lower taxes and higher property values.

5. Permanent & Enhanced QBI Deduction

  • The Qualified Business Income (QBI) deduction for pass-through entities becomes permanent—and is even expanded from 20% to ~23%, depending on income thresholds (Landlord Studio).
  • More landlords using LLCs or S-Corps can benefit from this long-term deduction, boosting profitability.

6. Generational Wealth & Estate Tools for Investors

  • The bill also increases estate and gift tax exemptions, easing generational property transfer and tax-planning (Landlord Studio).
  • That stability helps local landlords invest in improvements and long-term rental strategy.

What It Means for Our Twin City Rentals

  • For Renters: More affordable housing stock is on the way—great news for families navigating St. Paul’s rising rents.
  • For Owners: The expanded tax benefits unlock new reinvestment capital. Whether you’re upgrading units, expanding your portfolio, or refinancing, now’s a prime time to take advantage before key provisions phase out at the end of the decade.

⚠️ A Note on Broader Economic Context

While the bill brings tax savings and investment incentives, some critics note cuts to programs like Medicaid and SNAP that could affect lower-income households (The Guardian). That’s why while tax benefits flow through, it’s essential to stay mindful of economic pressures that may affect tenants’ ability to pay rent.

✅ Our Advice: Act Strategically and Invest Wisely

  • Property owners: Work with your CPA or tax advisor to align upgrades, bonus depreciation, and entity structure before restrictions begin to sunset in 2029––2030, depending on the provision.
  • Renters seeking affordability: Watch for new affordable rental units funded by expanded housing tax credits, likely becoming available in the coming years.

At Apartment Resource Group, we’re committed to helping St. Paul and surround area landlords and renters make the most of these changes—whether it’s identifying homes eligible for investment incentives or vetting affordable units when they become available. Reach out anytime to learn how these federal policies can benefit your next rental decision.

Bottom line: The One Big Beautiful Bill is reshaping rental-market economics—from stimulating affordable housing supply to turbocharging landlord tax benefits. Whether you rent or invest, the next few years offer exciting opportunities—and we’re here to guide you through them.

Disclaimer: This blog is for informational purposes only. Please consult a tax professional regarding your specific situation.

Resources for Struggling Apartment Tenants: A Guide to Financial Support and Side Hustle Ideas

Living in an apartment can be both convenient and challenging, especially when financial difficulties arise. If you’re struggling to make ends meet as a tenant, you’re not alone. There are resources available to help you navigate these tough times. In this blog post, we’ll explore various organizations that offer assistance with rent, as well as ideas for generating extra income through side hustles.

  1. Rent Assistance Programs:
    • HUD (U.S. Department of Housing and Urban Development): HUD offers rental assistance programs for low-income individuals and families. Visit their website or contact your local HUD office to inquire about eligibility and application procedures.
    • Salvation Army: This organization provides emergency rental assistance to those in need. Contact your local Salvation Army office to learn more about available programs.
    • 211: Dialing 211 can connect you with local resources for rent assistance, utility bill help, food assistance, and more.
  2. Local Agencies:
    • Minnesota Housing Finance Agency (MHFA):
      • MHFA offers various programs to assist renters and homeowners in Minnesota, including rental assistance, foreclosure prevention, and affordable housing options. Visit their website or contact them directly for more information on eligibility and available programs. Click to learn more about MHFA
  3. Minnesota Energy Assistance Program (EAP):
    • EAP assists eligible low-income households in Minnesota with their heating and energy bills during the winter months. Qualified participants may receive financial assistance to help pay for heating costs. Apply for EAP through your local community action agency or visit the Minnesota Department of Commerce website for more information. Click to learn more.
  5. Side Hustle Ideas:
    • Freelancing: Offer your skills on platforms like Upwork, Fiverr, or Freelancer. Whether it’s writing, graphic design, web development, or virtual assistance, there’s a demand for various freelance services.
    • Delivery Driver: Sign up to be a driver for services like UberEats, DoorDash, or Instacart. You can set your own schedule and earn extra income by delivering food or groceries.
    • Online Tutoring: If you excel in a particular subject or skill, consider offering tutoring services online through platforms like Tutor.com or Chegg Tutors.
    • Dog Walking/Pet Sitting: Love animals? Offer your services as a dog walker or pet sitter through apps like Rover or Wag.
    • Renting out Space: If you have extra space in your apartment, consider renting it out on platforms like Airbnb for short-term stays or storage.
  6. Government Assistance Programs:
    • Supplemental Nutrition Assistance Program (SNAP): SNAP provides eligible individuals and families with funds to purchase food. Visit the official SNAP website or contact your local social services office to apply. Click to to see eligibility and apply in MN
    • Temporary Assistance for Needy Families (TANF): TANF offers financial assistance to low-income families with dependent children. Contact your local social services office to inquire about eligibility and application procedures.

Conclusion: Struggling to make ends meet as an apartment tenant can be overwhelming, but remember that there are resources and support available to help you through difficult times. Whether you need assistance with rent, utility bills, or groceries, reach out to organizations in your community for help. Additionally, exploring side hustle opportunities can provide you with extra income to alleviate financial strain. Stay proactive and don’t hesitate to seek assistance when needed. If you are struggling as one of our tenants don’t wait, reach out to us right away for help!