Greater Houston

Houston, TX

Houston has no use zoning: lot size, setbacks and density come from Chapter 42, private deed restrictions and post-Harvey floodplain rules instead. Small lots down to 1,400 sq ft fuel the townhome boom, while flood exposure is the single biggest value driver.

💡 Upside tip

Check whether the lot is in the 100- or 500-year floodplain before planning any remodel: since 2018, expanding the footprint 33% or more counts as a substantial improvement and forces the house up to 2 ft above the 500-year flood elevation, which can turn a remodel into an elevation or rebuild.

Offers & competition

Offers use the TREC resale contract with a paid option period (commonly 5 to 10 days) that gives an unrestricted right to terminate. Schedule inspections, including foundation and flood checks, inside that window, because the exit disappears when it ends.

Closing & who pays

A title company closes the deal as escrow agent and no attorney is required; title premiums are set by the state, so they don't vary by company. Texas SB 17 (effective Sept 1, 2025) bars people domiciled in China, Iran, North Korea and Russia from acquiring Texas real property, with exceptions.

Transfer taxes

There is no state or local transfer tax in Texas. Budget instead for title insurance, lender costs and, often, flood insurance.

Seller disclosures

The Seller's Disclosure Notice (TREC OP-H) must state whether the home is in a 100-year floodplain or reservoir, has flooded, had a flood insurance claim or received FEMA/SBA aid. Suburban homes in Katy, Cypress or Fort Bend usually carry MUD or PID notices that reveal extra tax districts.

What you can build

Chapter 42 allows single-family lots as small as 1,400 sq ft with shared-driveway or open-space rules, and Livable Places amendments eased secondary dwelling units (ADUs). Blocks with a Minimum Lot Size or Special Building Line designation lock in the existing pattern for 40 years, and recorded deed restrictions, enforced by the City Attorney, can forbid subdivision; SB 840 now allows multifamily by right on commercial land.

Permits & records

Permit history lives in the Houston Permitting Center (iPermits); compare it with HCAD records to catch unpermitted additions or enclosed patios. Check the city portal for current review timelines, and use the Planning Department's MLS/SBL map with the title commitment as your zoning map substitute.

Property tax

Effective rates run roughly 1.6% to 2.5% including MUDs, which are common in Katy, Cypress and Fort Bend. The homestead cap (10% a year) resets on sale and the $140,000 school exemption applies only after you file, so recompute taxes at your purchase price and plan to protest your value.

Rent rules

Our research found no rent-cap program in Houston. Texas SB 1567 (2025) bars cities from capping occupancy by family relationship; landlords should still note that Texas requires flood-risk disclosure to tenants.

Key risks

Flood is the defining risk: many homes flooded in Harvey (2017) sat outside the mapped 100-year floodplain, so buy flood insurance even outside FEMA high-risk zones and watch for Harris County's MAAPnext map update. Beaumont clay soils also cause slab foundation movement.

⚠ Still verifying

Not re-verified: the current Chapter 42 lot-size text and Livable Places adoption dates, the MAAPnext map release timing, whether SB 15 changes anything in Houston, the exact scope of SB 1567, and SB 15 / SB 840 population thresholds.

Official sources

Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.