H-1B Visa Holders Can Buy U.S. Property—Key Tricky Points

(UNITED STATES) H-1B visa holders can buy homes and other real estate in the United States without special limits, but the line between passive investment and work that violates visa rules remains the key risk in 2025. Immigration lawyers say the law is clear on ownership: there is no federal rule that blocks foreign nationals from buying property. The hard part is what happens after the purchase, especially if the owner tries to manage a rental personally, which can raise unauthorized employment risk under H-1B rules.

The Department of Homeland Security’s H-1B modernization rule that took effect on January 17, 2025, widens options for founders and owner-beneficiaries in the tech and startup world. Still, it does not change the core rule that H-1B visa holders are only allowed to work for the employer listed in their petition. That means property ownership is fine, but day-to-day management of tenants or repairs can look like work for a business other than the H-1B sponsor.

According to analysis by VisaVerge.com, the new rule helps H-1B founders show a valid employer-employee relationship even when they own the company, thanks to structures like boards and formal job agreements. But real estate activities that look like hands-on management remain risky unless they are part of an approved H-1B job that meets specialty-occupation standards. For most buyers, the safer path is to stay passive: own the asset, do not handle the tenants, and keep clear records showing that any rental activity runs through a third-party manager.

What the law allows — and what it doesn’t

Officials and attorneys are aligned on a few core points:

• No ownership ban: Foreign nationals, including H-1B visa holders, can buy and hold U.S. residential or commercial property. This is long-standing practice and applies regardless of visa type.
• No immigration benefit: Owning real estate does not provide status, a green card path, or any visa edge. It has no bearing on visa approval or renewal.
• Work rules still apply: H-1B workers can only perform services for their sponsoring employer in their approved specialty occupation. Running a rental, meeting tenants, scheduling repairs, or advertising units can be treated as work for a different business.

Law firms report that the gray area often appears when an owner answers tenant calls, drafts leases, or supervises vendors on a regular basis. Even if no salary is drawn, repeated and direct involvement can be read as work. That is why lawyers advise separating property ownership from property operations.

The safe approach to avoid visa trouble

Attorneys recommend a practical set of steps to reduce unauthorized employment risk:

• Hire a licensed property manager. A professional manager should handle tenant screening, rent collection, repairs, and lease issues.
• Stay out of day-to-day tasks. Avoid direct tenant contact, setting repair schedules, or negotiating terms.
• Don’t pay yourself for management. No salary, fees, or “sweat equity” for running the property.
• Avoid running a real estate business. Ownership is fine; operating the business yourself is not, unless your H-1B job covers those duties lawfully.

This separation helps show that any income is passive investment return, not wages or compensation for services.

Founders, owner-beneficiaries, and the 2025 rule

The 2025 H-1B rule has sparked interest among founders who also invest in real estate. The rule recognizes self-employment for H-1B beneficiaries who can show a real employer-employee relationship, usually through governance controls and independent oversight.

• For a small number of cases, that may make it possible to own a real estate company and perform true specialty-occupation tasks (for example, a data scientist modeling rental pricing tools) for that company under an approved petition.
• Lawyers warn that leasing units or coordinating repairs would not fit a specialty occupation and could still count as unapproved work.

If a founder qualifies as an owner-beneficiary, they must keep H-1B job duties within their approved field and let non-H-1B staff or contractors handle leasing or building upkeep. Immigration officers can check this during site visits, which the rule now supports more strongly.

Financing considerations

Financing remains a second hurdle:

• Many banks lend to noncitizens, but lenders often require higher down payments—sometimes 30% to 50%.
• Lenders may impose tighter documentation checks, higher rates, and extra reserves.
• Some H-1B visa holders pay cash to avoid delays, especially in fast-moving markets.
• Others work with lenders that offer foreign national programs and accept work visas, Social Security numbers or Individual Taxpayer Identification Numbers (ITINs), and foreign credit histories.

Tax implications

Tax rules also matter and can be complex:

• Owners pay local property tax and, if the home is rented, federal (and often state) income tax on net rental income.
• When selling, capital gains tax may apply.
• For nonresident owners, withholding rules can kick in, and treaty benefits may affect rates.
• Tax professionals trained in cross-border matters can advise on structure, depreciation, and filing deadlines to keep filings complete and on time.

Market trends and motives

Market data shows that foreign buyers remain active. The National Association of Realtors reports overseas buyers purchased about $42 billion of U.S. existing homes in 2024, covering roughly 54,300 properties, with steady interest in gateway cities and college towns.

Real estate brokers say property ownership by skilled workers on visas has become a steady part of that demand, often driven by:

• School needs
• Job stability during long green card waits
• Dollar diversification

Real-life scenarios and practical guidance

Scenario 1 — A software engineer buys a home near the office for stability during green card waits. Later, a transfer or layoff could force a move and a plan to rent out the property. Key guidance:

• Use a third-party manager to run the unit.
• Do not return tenant calls, negotiate renewals, or coordinate repairs personally.
• Authorize the manager to handle everything and keep a clear paper trail.

Scenario 2 — A founder qualifies as an owner-beneficiary under the 2025 rule. Key guidance:

• Keep H-1B duties within the approved specialty (e.g., machine learning, product management).
• Let non-H-1B staff or contractors manage leasing or building upkeep.
• Maintain governance (board, investor oversight) and clear job descriptions.

Practical steps to stay organized:

1. During the purchase:
   • Keep copies of your passport and work authorization.
   • Show proof of funds.
   • If financing, seek pre-approval with a lender familiar with visa borrowers.
   • An ITIN or Social Security number helps with taxes and mortgage processing.
2. For rentals:
   • Sign a property management agreement.
   • Set clear authority for the manager.
   • Route all tenant emails and calls to the manager.
   • Do not list yourself as the contact on ads.
3. For taxes:
   • Track income and expenses.
   • Save invoices.
   • File on time and ask about depreciation and state-level duties.
4. If building a business:
   • Work with counsel to set up governance (board, investor oversight).
   • Adopt clean job descriptions.
   • Keep personnel files that match your H-1B petition.

USCIS forms and documentation

USCIS has updated forms to align with the modernization rule. Employers filing H-1B petitions, including startups with owner-beneficiaries, use Form I-129, Petition for a Nonimmigrant Worker. The current version is posted on the USCIS website: Form I-129, Petition for a Nonimmigrant Worker.

Petitioners should follow the latest edition instructions and keep copies of:

• Organizational charts
• Bylaws
• Board resolutions showing real oversight of the H-1B worker’s role

Lawyers stress documentation because agency oversight has grown. The modernization rule allows more site checks to confirm that job duties match petitions and that the employer-employee relationship is real.

Enforcement outlook and best practices

The policy environment may continue to evolve. Expectations include:

• More guidance on owner-beneficiaries and the best evidence that proves independent control.
• Steady enforcement of work rules around rentals from immigration and state landlord laws.

For now, the safest reading stays simple:

• Ownership is allowed; hands-on management can look like work.
• Use licensed professionals to run the rental.
• Keep clear records, separate roles, and professional management to show rental income is passive.

Stakeholders’ perspectives:

• Immigration lawyers welcome extra clarity for founders but caution that the comfort zone for property investment remains narrow.
• Real estate brokers report ongoing demand from skilled workers.
• Lenders are expanding foreign national products, but underwriting remains strict.
• Tax advisors say common mistakes—missing forms, mixing personal and rental funds, and late filings—are avoidable with early planning.

Bottom line for H-1B visa holders

For H-1B visa holders, keep roles clean:

• If you want to be a landlord, do so through a manager.
• If you want to be a founder, set up real oversight and keep your H-1B job tied to your specialty.
• If you want both, keep the paths separate on paper and in practice.

This discipline reduces unauthorized employment risk, keeps petitions strong, and protects long-term plans—whether adjustment of status through an employer, a later move to another nonimmigrant status, or simply finishing a contract term and returning home with a sound investment.

Families planning moves should build timelines that include mortgage approvals, school calendars, and visa dates. Workers facing layoffs should remember grace periods and confirm how a job gap affects rental plans. Owners eyeing a sale should speak with tax professionals ahead of time to plan for capital gains and to check whether a 1031 exchange is possible for investment properties.

In the current market, property ownership by foreign workers remains common, but immigration rules still govern what owners can do with their time. A clear plan, professional support, and careful records are the tools that keep an investment from turning into a visa problem.