---
title: "Opportunity zone — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/opportunity-zone/
---

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# Opportunity zone

A designated area where qualifying long-term investments can receive preferential capital gains treatment.

Opportunity zones are census tracts designated to attract investment, with tax benefits tied to investing eligible gains through a qualified fund and holding for defined periods.

The benefit depends on the structure and the holding period, not merely on buying inside the boundary.

## Related terms

- [1031 exchangeA tax provision allowing capital gains deferral when investment property is exchanged for other like-kind investment property.](/glossary/1031-exchange/)
- [AppreciationAn increase in a property’s value over time, from market movement or from improvements made to it.](/glossary/appreciation/)

## Go deeper

- [Opportunity zones](/investments/opportunity-zones/)

## More in Investing

- [1% rule](/glossary/one-percent-rule/)
- [1031 exchange](/glossary/1031-exchange/)
- [50% rule](/glossary/fifty-percent-rule/)
- [Appreciation](/glossary/appreciation/)
- [CAGR (Compound Annual Growth Rate)](/glossary/cagr/)
- [Cap rate (Capitalization rate)](/glossary/cap-rate/)

## Have a question about your own situation?

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