IRS Notice 2025-50 provides the rural designation criteria for Qualified Rural Opportunity Funds (QROFs) under OZ 2.0. Tracts qualifying as rural are eligible for the 30% basis step-up at year 5 — three times the 10% step-up available to standard QOFs. The criteria are based on USDA rural definitions and exclude tracts within Metropolitan Statistical Areas above a population threshold.
Original reporting by Marcus Delgado for Opportunity Zone Invest, an independent OZ 2.0 research site. Facts are drawn from the primary sources cited above per our editorial standards. Nothing here is tax, legal, or investment advice.
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