Kevin Ramundo, co-manager of Fidelity Intermediate Municipal Income fund, says several factors are supporting the outlook for muni bonds in the year ahead: expectations that the bond supply will remain tight, demand will be strong and the Federal Reserve will not raise rates. All that is “going to be very supportive of the asset class, absent an external shock,” he said.

Still, investors need to be careful. The increased popularity of municipal bonds has made them more expensive, and structural issues within the market require deft navigation.

Gary Schatsky, a financial adviser in New York, has plenty of clients who have been stung by the SALT limitation, yet he doesn’t presume that municipal bonds will be a guaranteed salve. The change in the law has reduced tax rates, and that matters. “If your new marginal tax rate is much lower, municipal bonds would arguably be less attractive,” he said.

Here are some issues to consider: The income (yield) from municipal bonds is free from federal taxes, while the income paid on corporate bonds and Treasury bonds is not. Even though municipal bonds typically have a lower nominal yield than taxable bonds, once you factor in taxes, municipal bonds can leave more money in your pocket. But that’s largely dependent on your federal tax bracket.

For instance, a 10-year AAA-rated municipal bond recently yielded 1.9 percent, compared with the 2.4 percent yield on a 10-year Treasury note. For taxpayers paying the highest federal rate — now 37 percent — that 1.9 percent municipal bond yield is equivalent to earning 3 percent on a taxable bond, well above the Treasury yield. Advantage: munis.

But it is different for people in the 22 percent federal tax bracket (which includes married couples filing a joint return with taxable income from $78,951 to $168,400). In this case, the 2.4 percent taxable equivalent yield for that muni bond is no better than the yield for a Treasury, and it is below the 3.2 percent yield for the iShares Core U.S. Aggregate Bond E.T.F. Advantage: taxable bonds.

Longer-term munis offer a better value proposition than those with short maturities. Short-term munis have been in such high demand that their yields have dropped to unattractive levels, some analysts say.