diff --git a/app/views/properties/_overview_fields.html.erb b/app/views/properties/_overview_fields.html.erb
index 7f7201d7d..c3fd55f34 100644
--- a/app/views/properties/_overview_fields.html.erb
+++ b/app/views/properties/_overview_fields.html.erb
@@ -6,13 +6,14 @@
                   placeholder: "Vacation home",
                   required: true %>
 
-  <%= form.select :subtype,
-                Property::SUBTYPES.map { |k, v| [v[:long], k] },
-                { prompt: "Select type", label: "Property type" }, required: true %>
-
+  
   <%= form.hidden_field :accountable_type, value: "Property" %>
 
   <%= form.fields_for :accountable do |property_form| %>
+    <%= property_form.select :subtype,
+                Property::SUBTYPES.map { |k, v| [v[:long], k] },
+                { prompt: "Select type", label: "Property type" }, required: true %>
+
     <div class="flex items-center gap-2">
       <%= property_form.number_field :year_built,
                     label: "Year Built (optional)",
diff --git a/test/fixtures/properties.yml b/test/fixtures/properties.yml
index c330c7f3b..94f4ad6c3 100644
--- a/test/fixtures/properties.yml
+++ b/test/fixtures/properties.yml
@@ -1,4 +1,10 @@
 one:
   year_built: 2002
   area_value: 1000
-  area_unit: "sqft"
\ No newline at end of file
+  area_unit: "sqft"
+
+primary_residence:
+  id: c506b873-dd1b-4136-8564-02367303946a
+  subtype: Single Family Home
+  created_at: <%= Time.current %>
+  updated_at: <%= Time.current %>
diff --git a/test/system/property_test.rb b/test/system/property_test.rb
new file mode 100644
index 000000000..769c338f4
--- /dev/null
+++ b/test/system/property_test.rb
@@ -0,0 +1,69 @@
+require "application_system_test_case"
+
+class PropertiesEditTest < ApplicationSystemTestCase
+  setup do
+    sign_in @user = users(:family_admin)
+
+    Family.any_instance.stubs(:get_link_token).returns("test-link-token")
+
+    visit root_url
+    open_new_account_modal
+    create_new_property_account
+  end
+
+  test "can persist property subtype" do
+    click_link "[system test] Property Account"
+    find("[data-testid='account-menu']").click
+    click_on "Edit"
+    assert_selector "#account_accountable_attributes_subtype"
+    assert_selector(
+        "#account_accountable_attributes_subtype option[selected]",
+        text: "Single Family Home"
+    )
+  end
+
+  private
+
+    def open_new_account_modal
+      within "[data-controller='DS--tabs']" do
+        click_button "All"
+        click_link "New account"
+      end
+    end
+
+    def create_new_property_account
+      click_link "Property"
+
+      account_name = "[system test] Property Account"
+      fill_in "Name*", with: account_name
+      select "Single Family Home", from: "Property type*"
+      fill_in "Year Built (optional)", with: 2005
+      fill_in "Area (optional)", with: 2250
+
+      click_button "Next"
+
+      # Step 2: Enter balance information
+      assert_text "Value"
+      fill_in "account[balance]", with: 500000
+      click_button "Next"
+
+      # Step 3: Enter address information
+      assert_text "Address"
+      fill_in "Address Line 1", with: "123 Main St"
+      fill_in "City", with: "San Francisco"
+      fill_in "State/Region", with: "CA"
+      fill_in "Postal Code", with: "94101"
+      fill_in "Country", with: "US"
+
+      click_button "Save"
+
+      # Verify account was created and is now active
+      assert_text account_name
+
+      created_account = Account.order(:created_at).last
+      assert_equal "active", created_account.status
+      assert_equal 500000, created_account.balance
+      assert_equal "123 Main St", created_account.property.address.line1
+      assert_equal "San Francisco", created_account.property.address.locality
+    end
+end