OZScore methodology
The OZScore is a transparent 0–100 composite signal designed to help investors compare Opportunity Zone 2.0 eligible tracts on the dimensions that matter most for OZ returns. It is not a recommendation and is not tax advice — it's a starting point for research.
The four components
| Component | Weight | Source |
|---|---|---|
| Demographic momentum (5-yr median income growth) | 30% | Census ACS 5-yr |
| Property fundamentals (5-yr median home value growth) | 30% | Census ACS / Zillow |
| Fund activity (active QOFs targeting the tract) | 20% | Novogradac / SEC Form D |
| MSA growth (percentile within metropolitan area) | 20% | Census / BLS |
How the score maps to colors
- 80–100 (green) — high-conviction tract. Strong on demographics, property, or both, with fund interest.
- 60–79 (amber) — solid fundamentals but less momentum or fund activity. Worth deeper diligence.
- Below 60 (coral) — higher-risk tract. May still be attractive for specific strategies (e.g. rural QOFs, ground-up development).
What it explicitly does not model
- Political or zoning risk specific to a single parcel
- Macro rate cycle impact on QOF returns
- Specific fund terms (management fees, carry, hold period)
- Individual tax situation (AMT, state conformity, existing losses)
- Entitlement or environmental risk
Transparency
The scoring function is deterministic. Given the same four input values, it always returns the same OZScore.
You can see the exact formula in our repository (src/lib/oz-score.ts). We publish it openly because investors
deserve to know how a data-driven signal on their behalf is actually computed.
This is a Phase 1 placeholder model. As we ingest more signal — developer activity, zoning data, proprietary fund positioning — the weights will evolve. We'll publish every change to this page with an effective date.
Not investment advice. The OZScore is a research signal. Opportunity Zone investments involve long hold periods, illiquidity, and significant risk. Consult a qualified CPA and investment advisor before acting.