Opportunity Zones are really areas in the country that can provide tax incentives “to investors (corporations and individuals) with capital gains to invest (those capital gains) in low-income and undercapitalized communities,” according to the Tax Policy Center.

Opportunity Zones were created in the 2017 Tax Cuts and Jobs Act to benefit both distressed communities and individuals and/or corporations with capital gains to invest. Depending upon the length of that investment in low-income communities, either increases to that investment or no taxes on the profits would be levied.

12% of all US census tracts are designated by the Treasury Department as Opportunity Zones. Opportunity Funds can finance a wide range of projects and activities such as housing, commercial/industrial real estate projects, infrastructure and existing or start-up businesses. Here are the top ten Opportunity Zone census tracts with median home prices of either +$500,000 or -$200,000.

Top 10 Opportunity Zone Census Tracts with Median Home Prices +$500,000

San Jose-Sunnyvale-Santa Clara                                    $950,000

San Luis Obispo-Paso Robles-Arroyo Grande                    $965,750

San Francisco-Hayward-Oakland                                     $970,000

Los Angeles-Long Beach-Anaheim                                   $988,750

San Jose-Sunnyvale-Santa Clara                                     $995,000

New York-Newark-Jersey City                                          $999,999

San Francisco-Hayward-Oakland                                     $1,075,000

Los Angeles-Long Beach-Anaheim                                   $1,100,000

Santa Cruz-Watsonville                                                  $1,245,000

Huntsville AL                                                                 $1,450,000

Top 10 Opportunity Zone Census Tracts with Median Home Prices -$200,000

Merced CA                                                                     $198,000

Dallas-Fort Worth- Arlington                                            $198,412

Brevard NC                                                                    $198,500

Phoenix-Mesa-Scottsdale                                                $198,750

Greenville-Anderson-Maudlin SC                                     $199,000

Las Vegas-Henderson-Paradise                                        $199,000

Merced CA                                                                     $199,000

Riverside-San Bernardino-Ontario                                    $199,500

Spokane-Spokane Valley                                                 $199,900

Show Low AZ                                                                 $199,900

According to the Tax Policy Center, 80% of Opportunity Zones during Q2 2019 had median home prices that were below the national median figure of $266,000. 50% had median prices of less than $150,000.

Also according to the Tax Policy Center, these are the states with the highest percentages of census tracts meeting Opportunity Zone requirements:

  • Wyoming –       17%
  • Mississippi –      15%
  • Alabama –         13%
  • North Dakota –   12%
  • New Mexico –      12%

The District of Columbia had 14% of its census tracts meet Opportunity Zone requirements.

Nationwide, 10% of all census tracts meet Opportunity Zone requirements.