Quick Answer: Orlando has 12 federally designated Opportunity Zones, including South Parramore, the Packing District, SoDo, Holden Heights, La Costa near the airport and West Colonial. Investors who put capital gains into a Qualified Opportunity Fund that invests in these zones can defer, reduce and potentially eliminate capital gains tax. A new, permanent round of zones, known as OZ 2.0, takes effect January 1, 2027, and Florida’s new map is still being finalized.
Orlando Opportunity Zones at a Glance
| Item | Detail |
|---|---|
| Orlando zones (OZ 1.0) | 12 census tracts |
| Florida zones (OZ 1.0) | 427 |
| OZ 1.0 expiration | Dec. 31, 2028 |
| OZ 2.0 start | Jan. 1, 2027 |
| Florida OZ 2.0 cap | ~340 tracts |
| State agency | FloridaCommerce |
| City contact | 407-246-2821 |
What Is an Opportunity Zone?
An Opportunity Zone is a low-income census tract where private investment qualifies for federal tax breaks. The benefit is deferral, reduction and potential elimination of capital gains tax, not a rebate or grant.
The mechanics work through a Qualified Opportunity Fund (QOF). An investor sells an appreciated asset, such as stock, a business or real estate, and reinvests the gain into a QOF. A fund must hold 90% of its assets in real estate or operating businesses located in Opportunity Zones. If the investment is held at least 10 years, any appreciation on the QOF investment becomes entirely tax-free.
The program was created by the 2017 Tax Cuts and Jobs Act, and the One Big Beautiful Bill Act, signed July 4, 2025, made it a permanent part of the tax code.
Where Are the Opportunity Zones in Orlando?
Twelve of Florida’s 427 designated Opportunity Zones are inside the City of Orlando. The city describes each zone by neighborhood and redevelopment focus:
| Zone | Investment Focus |
|---|---|
| South Parramore | Housing, small business, light industrial |
| The Packing District | Mixed-use, adaptive reuse, warehouses |
| SoDo District | Retail, walkable destinations |
| Holden Heights | Homes and businesses |
| West Colonial | Mixed-use near Camping World Stadium |
| Executive Airport | Housing, lodging, office |
| Colonialtown South | Milk District revitalization |
| La Costa | Airport gateway redevelopment |
| Greater Washington Shores | Senior housing, town center |
| Mercy Drive | Housing, activity center |
| Rosemont | Commercial and housing redevelopment |
| Lake Sunset | Mixed-income housing |
South Parramore
South Parramore is suited to affordable and market-rate housing, neighborhood businesses and some light industrial uses. It also sits inside both the Downtown CRA and the Orange Blossom Trail CRA, which allows investors to stack local redevelopment incentives on top of federal OZ benefits.
The Packing District
The city sees the Packing District as best suited for regional recreation, mixed-use development, industrial-style design, and adaptive reuse of former citrus packing facilities and warehouses. It’s one of the few Orlando zones with meaningful industrial and flex-space potential close to downtown.
Executive Airport and La Costa
These two zones target commercial and hospitality investors. The Greater Orlando Aviation Authority controls many city-owned parcels along the East Colonial corridor near Orlando Executive Airport, with plans for housing, lodging and office uses. La Costa sits on the gateway to Orlando International Airport and includes part of the Gateway Orlando District along South Semoran Boulevard.
SoDo and West Colonial
The SoDo District is planned around preserving retail, walkable destinations, civic space and façade improvements. West Colonial includes Camping World Stadium, and the businesses along West Colonial Drive have potential for mixed-use and housing development.
A Local Example: Parramore Oaks
Orlando produced one of the program’s earliest test cases. Parramore Oaks was among the first affordable housing properties in the nation to combine Opportunity Zone incentives with the low-income housing tax credit. Its first phase delivered 120 units, 96 affordable and 24 market-rate. The roughly $28 million project also used a $1.1 million zero-interest loan from the City of Orlando’s Community Redevelopment Agency.
The lesson for commercial investors is the layering: federal OZ benefits, housing credits and city CRA money in a single capital stack.
What Changes Under Opportunity Zones 2.0
OZ 2.0 is the most important factor for anyone planning an Orlando investment over the next year.
| Feature | OZ 1.0 | OZ 2.0 |
|---|---|---|
| Designation | One-time (2018) | Every 10 years |
| Income test | Below 80% of median | Below 70% of median |
| Contiguous tracts | Allowed | Eliminated |
| Deferral | Fixed end date | Rolling 5 years |
| Rural step-up | 10% | 30% |
New zones will be nominated by governors and certified by the U.S. Treasury by year-end, taking effect January 1, 2027, with new designations every 10 years after that. Investments made after January 1, 2027 get a rolling five-year deferral instead of a fixed end date.
Existing zones don’t disappear overnight. FloridaCommerce states that OZ 1.0 zones expire December 31, 2028.
Florida’s nomination status
Florida’s new map is not final. Statewide, 1,360 census tracts meet the OZ 2.0 income or poverty thresholds, and the 25% cap allows Florida to nominate up to 340 of them. The national 90-day window closed September 28, 2026, and Florida is shown as working under the extended deadline of October 28, 2026.
Treasury certification follows submission, and if every extension is used, the final tract list may not be known until late December 2026.
What that means for Orlando: Because the income threshold tightened from 80% to 70% of median family income, some of Orlando’s current 12 zones may not qualify for OZ 2.0, and some tracts that missed the 2018 map may now be eligible. Investors should confirm a parcel’s status against the final certified list before closing.
How to Invest in an Orlando Opportunity Zone
- Identify an eligible gain. Capital gains from the sale of stock, real estate or a business can be reinvested.
- Choose a structure. Invest through an existing QOF or form your own fund to hold a specific Orlando project.
- Confirm the tract. Check the parcel against the current list and, after certification, the OZ 2.0 list.
- Plan for substantial improvement. Real estate generally must be significantly improved, not just bought and held.
- Layer local incentives. Ask the city about CRA programs, brownfield designations and infrastructure support.
- Hold for 10 years. The largest benefit, tax-free appreciation, requires a decade-long hold.
The city’s role is to connect funding with projects and build an investable project pipeline. Investors can reach Orlando’s Economic Development Department at 407-246-2821, and the city publishes an Opportunity Zone prospectus.
This article is for general information and is not tax or legal advice. Consult a CPA or tax attorney before investing in a Qualified Opportunity Fund.
Brian’s Take
From my years as an investment manager, the Opportunity Zone program was always an after-tax return play first and a real estate play second. The incentive is only worth something if the underlying project would be a decent deal on its own. Orlando gives investors more to work with than most Florida cities: zones near both airports, an industrial-flex story in the Packing District, and CRA overlays in Parramore that can stack with federal benefits.
The timing is what stands out right now. We’re in the gap between two maps. OZ 1.0 tracts still work through 2028, but the higher-value OZ 2.0 rules, especially the rolling deferral, start January 1, 2027, and Florida’s list isn’t certified yet. My view: line up projects now, but don’t close on a parcel whose OZ 2.0 status matters to your returns until the certified map is out. That list is the single most important Orlando real estate document of the next few months.
Frequently Asked Questions
How many Opportunity Zones are in Orlando?
Twelve census tracts in the City of Orlando are designated Opportunity Zones under the original 2018 program.
Is Parramore an Opportunity Zone?
Yes. South Parramore is one of Orlando’s 12 designated zones and overlaps the Downtown and Orange Blossom Trail Community Redevelopment Areas.
Is the Packing District an Opportunity Zone?
Yes. The city lists the Packing District as a designated zone suited to mixed-use, adaptive reuse and warehouse development.
What are the tax benefits of investing in an Orlando Opportunity Zone?
Investors can defer capital gains reinvested in a Qualified Opportunity Fund, reduce them through a basis step-up, and pay no tax on the fund’s appreciation if they hold for at least 10 years.
When do the new Opportunity Zones take effect?
OZ 2.0 designations take effect January 1, 2027 and run for 10 years. Florida’s nominations were still being finalized as of early October 2026.
Will Orlando’s current zones stay in OZ 2.0?
Not necessarily. Stricter income rules mean the governor must re-nominate qualifying tracts. Check the final Treasury-certified list before investing.
Who do I contact about Orlando Opportunity Zone projects?
The City of Orlando Economic Development Department at 407-246-2821 or economicdevelopment@orlando.gov.
Sources and Further Reading
- City of Orlando – Opportunity Zones: https://www.orlando.gov/Initiatives/Opportunity-Zones
- City of Orlando – South Parramore Opportunity Zone: https://www.orlando.gov/Initiatives/Opportunity-Zones/South-Parramore
- FloridaCommerce – Opportunity Zones Program: https://floridajobs.org/business-growth/opportunity-zones-program
- OpportunityZones.com – Opportunity Zones in Florida: https://opportunityzones.com/location/florida/
- OpportunityZones.com – OZ 2.0 Nominations After the 90-Day Deadline: https://opportunityzones.com/2026/09/oz-2-0-nominations-where-things-stand-after-the-90-day-deadline/
- OpportunityZones.com – OZ 2.0 State Tracker: https://opportunityzones.com/oz2-tracker/
- U.S. Department of Housing and Urban Development – Opportunity Zones Updates: https://www.hud.gov/opportunity-zones/updates
- National Association of Development Organizations – OZ 2.0 Resource Guide: https://www.nado.org/opportunity-zones-2-0-resource-guide/
- FBT Gibbons – Strategic Selection of Opportunity Zones 2.0: https://fbtgibbons.com/strategic-selection-of-opportunity-zones-2-0-a-governors-guide-to-best-practices/
- Opportunity Zone Invest – OZ 2.0 News: https://opportunityzoneinvest.com/news/
- NCSHA – Parramore Oaks Case Study: https://www.ncsha.org/wp-content/uploads/Case-Study-Parramore.pdf
- PR Newswire – Alliant Strategic Investments, Parramore Oaks: https://www.prnewswire.com/news-releases/alliant-strategic-investments-announces-construction-on-affordable-housing-property-in-opportunity-zone-300815462.html
- Wikipedia – Opportunity zone: https://en.wikipedia.org/wiki/Opportunity_zone
