Investors have their eyes on Houston, thanks to a federal tax incentive known as the Opportunity Zone program.

Part of the 2017 federal tax overhaul aimed to spur economic activity in low-income neighborhoods by allowing states to designate areas in need of revitalization as Opportunity Zones, investments in these areas would be rewarded by federal tax breaks.

OPPORTUNITY ZONES: Are federal ‘opportunity’ tax breaks going to right places? Not all Opportunity Zones are equally likely to attract investment. The surge in Gulton’s property sales after that neighborhood became eligible for the tax break was larger than similar surges in 98 percent of Opportunity Zones.

The changes in Opportunity Zones stand in stark contrast to the changes in neighborhoods that had been eligible to become Opportunity Zones but were ultimately not selected. Because the final guidelines for Opportunity Zone investment have not yet been announced, many investors may still be sitting on the sidelines.