An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Some 8,700 Census Tracts are designated Opportunity Zones nationwide, and they are searchable in both residential and commercial mode in RPR.
What is the federal Qualified Opportunity Zones (QOZ) Program?
Congress created the federal Qualified Opportunity Zone (“QOZ”) program in the 2017 “Tax Cuts and Jobs Act” to encourage economic growth in these communities by offering tax incentives to investors. The purpose of the program is to drive economic growth through long-term investments in economically disadvantaged communities.
Under the program, taxpayers who reinvest capital gains from a previous sale into a fund for investing (called “Opportunity Funds”), are eligible to defer paying taxes on those gains, and can potentially reduce their tax liability by 10-15% (based on the amount of time they hold the investment). Additionally, if the investment is held for at least ten years, any appreciation on it is tax-free. Please see the links at the bottom of this article to gain a full understanding of the requirements to participate in this program.
Where can I find Opportunity Zones in RPR?
Opportunity Zones can be located on ALL maps on the RPR website. REALTORS® can use the map interface to analyze and search for properties within the 8,700 Opportunity Zones throughout the U.S.
To start, select "Opportunity Zones" from the Show Geographies drop-down menu in the Map Tools bar. Opportunity Zones display on the map in a peach color. Non-shaded areas are simply census tracts (not Opportunity Zones).
What can I do with Opportunity Zones in RPR?
Locate Listings: Search for listed properties within an Opportunity Zone, then create a Property Report or Commercial Property Report for an intended buyer.
Select For Sale above the search bar and enter an area in the search bar, then click the search button. Click Map View (if not already selected), then select Opportunity Zones from the Show geographies drop-down menu. Click on up to three Opportunity Zones shown on the map (shaded in peach), then click Search these 3 geographies link. Click the Create a Report button, choose Property Report (residential) or Commercial Property Report (commercial), click More Details to customize, then click the Run Report button.
Price a Property: Find out if your client's property is located in an Opportunity Zone, then create a Comp Analysis to determine pricing and include it in a Seller's Report. This is available for residential properties.
Select All Properties above the search bar, enter a specific address in the search bar, click the search button. Click Map View (if not already selected), then select Opportunity Zones from the Show geographies drop-down menu. View the map to see if your property icon is located within an Opportunity Zone (shaded in peach). Click the Create a Comp Analysis button and follow the steps in the five step wizard. Click the Create a Report button when finished, choose Seller's Report, click More Details to customize, then click the Run Report button. Watch a short video tutorial on our Comp Analysis tool.
Follow the Market: Create a Market Activity Report to see what is happening in an Opportunity Zone. This report is available in residential mode.
Select Market Activity above the search bar, enter an area in the search bar, then click the search button. Click Map View (if not already selected), then select Opportunity Zones from the Show geographies drop-down menu. Click on an Opportunity Zone shown on the map (shaded in peach), then click Create a Market Activity Report link. On the Report generation page, make sure Market Activity Report is selected, click More Details to customize, then click the Run Report button.
Farm an Opportunity Zone: Create mailing labels and reach out to potential sellers within an Opportunity Zone. This feature is available for both residential and commercial properties.
Select All Properties, For Sale, For Lease, or Market Activity above the search bar, enter an area in the search bar and click the search button. Click on up to three Opportunity Zones shown on the map (shaded in peach), then click Search these 3 geographies link. Filter and sort your results, then click the Create Mailing Labels link and make your selections. Each REALTOR® can export up to 2,000 records each month. See the article How do I create Mailing Labels or CSV Export? for complete instructions and details.
Select a site for a business: Be a part of the revitalization of an economically disadvantaged community by helping your client place their business within an Opportunity Zone.
On the commercial homepage, click the Go to analysis button to determine the type of business needed in an Opportunity Zone or the best area within an Opportunity Zone to place a particular business. When asked to enter an area, click the Or select area on a map link and choose Opportunity Zones from the Show geographies drop-down menu. Select the peach shaded Opportunity Zones shown on the map. See the article How do I use the market analysis tools? for detailed instructions.
Share data with local elected officials: Authorized Association and MLS staff can share demographic and local trends within an Opportunity Zone with local elected officials and state legislators to assist in planning and development.
Click on Data Tools, then select the Econ Area Reports tab. Click the Select areas on a map button to open the Map Wizard. Choose Opportunity Zones from the Map Wizard drop-down menu, then click on the peach-shaded Opportunity Zones that you would like to report on, and click the Next button.
NAR Toolkit - Qualified Opportunity Zones Toolkit
NAR Article - Background: Qualified Opportunity Zones
IRS Article - Opportunity Zones Frequently Asked Questions
U.S. Department of the Treasury Article - Opportunity Zone Resources