Protecting BTR – May 4, 2026
Industry groups say Section 901 of the ROAD to Housing Act could put an end to development of build-to-rent housing
As two large-scale legislative packages aimed at boosting housing production—one passed by the U.S. House of Representatives, the other by the Senate—head toward a reconciliation vote, the multifamily industry has been generally supportive. Except, that is, for language aimed at curtailing institutional investment into single-family homes by limiting the number of homes these investors may own (no more than 350) as well as the hold period (no more than seven years).
That language, added to the Senate’s ROAD to Housing Act as Section 901, would have a chilling effect on the build-to-rent (BTR) sector, say the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA). “The goal of this legislation was to add housing supply,” says the NMHC. “This provision would do the opposite.
“BTR homes are not built to be sold. They are purpose-built rental communities, developed and financed like apartments to expand housing choice for families, seniors and others. This proposal would force these homes to be sold after just seven years, which would disrupt residents, deter investment and ultimately reduce the availability of much-needed housing. At a time when the country needs more housing options, not fewer, policymakers should fight to exclude this language from the final legislation and protect rental choice.”
Now, a group of lawmakers has taken up this argument. An open letter signed by 76 members of Congress went to House Speaker Mike Johnson and House Minority Leader Hakeem Jeffries in late April. The bipartisan letter urged Congress to remove Section 901 provisions that would be harmful to increasing the supply of affordable housing.
The letter states that Section 901, as drafted, would have “far-reaching and unintended consequences that run counter to the bill’s stated goal of expanding housing opportunity. Instead of narrowly targeting corporate competition in the public market for existing single-family homes, Section 901’s sweeping definition of ‘purchase’ captures the construction of new single-family rental communities and other channels that add needed supply, going far beyond its intended purpose in ways that reduce housing options for renters.”
NMHC President Sharon Wilson Géno and NAA President and CEO Bob Pinnegar both applauded the letter. At NAA, Pinnegar pointed out that the Section 901 language would have the long-term effect of “ultimately removing a flexible housing option for families and exacerbating supply shortages.”
Rental housing economist Jay Parsons endorsed the letter in a LinkedIn posting. “Still a long way to go before this is resolved (and the BTR market is essentially frozen until that happens), but encouraging to see 76 members of Congress reject populist-driven conspiracy theories and push for the real solution: Build more housing. The ROAD to [Less] Housing Act does the opposite, effectively killing a market that produces >70k homes each year.”
He added, “While it’s very encouraging to see so much momentum for build-to-rent, we also need to see more focus on renovate-to-rent. Investors of all sizes often target homes in disrepair that a typical homebuyer cannot afford—not due to home price, but due to repair costs and also challenges getting a mortgage for homes that aren’t move-in ready. Investors provide an exit path for homeowners needing to sell such homes, and typically invest far more in repairs than an individual homebuyer would — thereby resuscitating aging homes.
“Renters are people, too, and they need housing, too.”
While the advocacy of industry associations is invaluable, so is contacting your elected representatives on a one-to-one basis. To help inform industry members about what’s at stake, there’s an NMHC-sponsored website, Protect Rental Choice, that provides effective counterarguments to the numerous myths surrounding BTR and Section 901’s impact. Read it to help inform your own letter opposing Section 901.