Federal · Treasury proposed rule, 31 CFR part 36

Treasury proposed rule on the ROAD to Housing Act's ban on large investors buying single-family homes: build-to-rent, renovate-to-rent and renter-purchase exceptions

Proposed Oct. 23, 2026 · Comments due Nov. 23, 2026

Published October 23, 2026 · Last updated October 23, 2026

What it does

This is a proposed rule. It would create a new 31 CFR part 36 to carry out section 1001 of the 21st Century ROAD to Housing Act, which “prohibits large institutional investors from purchasing single-family homes, subject to certain exceptions.” The law was enacted July 11, 2026; its purchase ban starts 180 days later, on January 7, 2027. (Proposed rule, Summary; section I.A) For background on the whole law, see our explainer on the ROAD to Housing Act.

The law generally defines a large institutional investor as a for-profit entity in the business of investing in, owning, renting, managing or holding single-family homes that, alone or with others, has investment control of at least 350 single-family homes, not counting homes bought in an excepted purchase after enactment. (Proposed rule, preamble) Treasury says the rule is a first phase and it may issue more rules later. (Proposed rule, sections I.B and I.C) The proposal would:

• Define a “program.” The law’s program exceptions would require written policies or procedures adopted before the purchases and reasonably designed to make sure every purchase meets the requirements. (Proposed 31 CFR 36.3)
• Build-to-rent. Homes that no owner-occupant has lived in, bought within 18 months after receiving a certificate of occupancy (or equivalent), and first occupied by renters after the purchase. (Proposed 31 CFR 36.5)
• Renovate-to-rent. Homes that don’t meet structural or core system elements of local building codes when bought, which the investor substantially rehabilitates, with improvements totaling at least 15% of the purchase price of the home. That price would leave out the tax-assessed value of the land. Spending at least 10% on structural or core systems and fixing all material deficiencies would count as substantial rehabilitation. (Proposed 31 CFR 36.2 and 36.6)
• Homeownership program (rent with a path to buy). Rent and fees no higher than the investor charges on similar homes outside the program; the contract treated as a consumer credit transaction secured by a dwelling; free positive rent reporting to credit bureaus for renters who opt in; “meaningful financial support” toward buying the home, plus a right to buy it at no more than fair market value minus that support; and these terms carry over if the home is sold to another large investor. (Proposed 31 CFR 36.7(a))
• Program to boost homeownership. Free positive rent reporting for renters who opt in; meaningful financial support toward buying the rented home or another home; and a right of first refusal with a 30-day first look. Before marketing the home, the investor would have to give the renter written notice of the price and terms, wait 30 days, and give the renter at least 5 business days to match a later outside offer that is at or below the renter’s earlier offer. The support could end 90 days after the renter moves out of the investor’s homes. (Proposed 31 CFR 36.8)
• Safe harbor for financial support. For a renter of at least 5 years, support of at least the lesser of $5,000 or 2.5% (3.5% after 7 years) of the lesser of the purchase price or the county’s FHA one-unit loan limit would count as meaningful, if the investor doesn’t take it back through a higher price or fees. Other help, such as price cuts, down-payment or closing-cost assistance, could also qualify depending on the facts. (Proposed 31 CFR 36.7(b) and 36.8(b), (e))
• Other exceptions. The rule spells out when purchases tied to repaying earlier debts, foreclosure and other loss mitigation by servicers and lenders, and purchases from another large investor (that owned the home at enactment or bought it legally) are allowed. (Proposed 31 CFR 36.9 to 36.11)
• Who is covered. It defines being “engaged in the business of” holding homes (owning them for gain, not just temporarily as part of another business) and a “passive investor” (no shared directors or officers, and no control over the homes). (Proposed 31 CFR 36.15 and 36.16)

Who it affects

• Large for-profit investors that own or control 350 or more single-family homes, and companies that invest in them. (Proposed rule, preamble)
• Renters of homes owned by those investors, who could get rent reporting, purchase help and purchase rights under the program exceptions. (Proposed 31 CFR 36.7 and 36.8)
• Home builders, lenders and servicers that sell homes to large investors or take homes back through foreclosure. (Proposed 31 CFR 36.5, 36.9 and 36.10)

What it means for you

• Only large investors are covered. The ban applies to large institutional investors as the law defines them, not to other buyers. (Proposed rule, preamble)
• If you rent from a large investor, the rule describes rights you might be offered if your landlord uses a homeownership program to keep buying homes, such as free on-time rent reporting and help toward buying. These would depend on your rental contract. (Proposed 31 CFR 36.7 and 36.8)
• Penalties. The law allows civil penalties of up to the greater of $1 million or three times the purchase price. Under the proposal, one purchase that violates the law for more than one large investor would count as a single violation. (Proposed rule, preamble; proposed 31 CFR 36.17)
• Comment if you want to. Submit comments at regulations.gov (docket TREAS-DO-2026-0529) or by mail to U.S. Department of the Treasury, Attention: Office of Capital Markets, 1500 Pennsylvania Avenue NW, Washington, DC 20220, captioned “Restrictions on Large Institutional Investor Purchases of Single-Family Homes.” Comments must be received by November 23, 2026, and they become public. (Proposed rule, “Dates” and “Addresses”)

Current status

Published as a proposed rule October 23, 2026, at 91 FR 66799 (docket TREAS-DO-2026-0529, RIN 1505-AC96). It is not final. The law’s purchase ban takes effect January 7, 2027, whether or not the rule is final by then. (Proposed rule, header; section I.A)

What happens next

Treasury is taking comments through November 23, 2026. It may issue more rules on other parts of the law. A separate annual notice that large investors must file with the Department of Housing and Urban Development (HUD) will be set by HUD, not by this rule. (Proposed rule, “Dates”; sections I.B and I.C, footnote 6)

Sources

• Federal Register: “21st Century ROAD to Housing Act Prohibition on Large Institutional Investor Purchases of Single-Family Homes,” proposed rule, FR Doc. 2026-21675 (Oct. 23, 2026)
• Regulations.gov: docket TREAS-DO-2026-0529 (comments)
• Congress.gov: H.R.6644, 21st Century ROAD to Housing Act (Public Law 119-101)

Every statement above is drawn from the official source text linked here; section references are shown in grey. This is a plain-English summary, not legal advice. Spot an error? Tell us.