Limits for interest deductions on home loans have dropped from $1 million to $500,000. So if their combined notes are over $500K, they no longer get that break. This will really hurt people who buy up homes cheap, mortgage them, then rent them out. I have two friends who each own over 5 homes all section 8. They are barely making ends meet with their unreliable clientele. Its harder than you think to turn a profit on a rental. They hold onto them with the hopes that appreciation, and the note pay down will pay off as passive income in retirement. Me, I do it the old fashioned way, stuffing it away.