The House TruthROAD Act
The ROAD Act renovate-to-rent rule, in plain English
Treasury's proposed rule sets two tests for homes bought to renovate and rent. Here's what each one asks, and what it will take to prove.
In October 2026, the U.S. Treasury proposed rules (91 FR 66799, Docket TREAS-DO-2026-0529) for an exception that lets certain buyers keep purchasing single-family homes if they renovate them for rent. The rule is proposed, not final, and public comments are open until November 23, 2026.
The proposal sets two tests for each home.
The first is a spending test. Improvements to the home must total at least 15 percent of the purchase price of the single-family home. The rule defines that price as the purchase price of the property minus the tax-assessed value of the land at the time of purchase. All improvements count here, including cosmetic work like paint, flooring, cabinets and appliances.
The second is a deficiency test. The home must not meet structural or core-system elements of local building code when it is bought, and the buyer must resolve all material deficiencies. Structural and core systems cover things like foundation, framing, fire safety, light and ventilation, plumbing, electrical and mechanical systems. Treasury offers a safe harbor: spend at least 10 percent of the purchase price of the home on structural or core-system work, and resolve all material deficiencies in those elements, and the deficiency test is deemed met. Cosmetic work standing alone does not count toward that 10 percent, though demolition and finish work needed to complete a qualifying repair does.
Timing matters. The deficiency is judged at the time of purchase. Damage after the purchase does not create eligibility. Buyers also need written renovation policies and procedures adopted before they buy, and they need to follow them.
Treasury lists the records that can support all of this: scopes of work, invoices, proof of payment, photographs, contractor assessments, engineer or architect reports, permit records, records of completed work and the purchase-price and threshold calculations. It has not set a required format yet. It is asking the public what that should look like.
That is the gap we care about. The work that qualifies for the safe harbor is the work that gets covered by drywall within days. A receipt shows money was spent. It does not show what was fixed.
Our founder, Ben Vinson, has over 20 years in renovations. He filed a public comment with Treasury on how this work should be proven: write the scope line first, tie the receipt to it, and verify it with a dated walk. He later filed a supplemental comment correcting how his first filing described cosmetic work, because accurate records start at home.
Read Ben's comment and add your own before November 23.
This page summarizes a proposed rule for general information. It is not legal or tax advice. Consult your own advisors.