Stop Wall Street Landlords Act of 2026

This bill introduces measures to deter large investors from acquiring and holding single-family homes by amending federal tax and housing laws. It targets "specified large investors," defined as entities or individuals with aggregate assets exceeding $100 million , including controlled groups. For these investors, the bill disallows tax deductions for expenses such as mortgage interest, insurance, and depreciation related to their ownership of single-family homes. However, certain exceptions apply to this deduction disallowance. It does not affect single-family homes used as a principal residence by an individual investor, nor does it apply to federally-assisted buildings or homes that were originally constructed or substantially rehabilitated by the taxpayer. Furthermore, government entities and 501(c)(3) tax-exempt organizations are explicitly excluded from the definition of a specified large investor. In addition to disallowing deductions, the legislation imposes a significant excise tax on the sale or transfer of single-family homes by these specified large investors, with the tax amount being equal to the full sale price. Funds collected from this excise tax are directed to the Housing Trust Fund to support the creation and preservation of affordable rental housing for low-income families. The bill also prohibits federal mortgage assistance, preventing entities like Fannie Mae, Freddie Mac, and Ginnie Mae from purchasing, lending on, or guaranteeing mortgages where the mortgagee is a specified large investor.