SB 785 Resource Center
Senate Bill 785 is a major update to how new HUD-code manufactured homes are treated under city zoning in Texas. This page is a quick reference for TMHA members and Texas license holders as cities prepare for implementation.
Effective date: September 1, 2026.
Quick Summary
What SB 785 Requires:
- No discriminatory permitting. Cities cannot require a specific use permit (SUP) or similar special permit for a new HUD-code manufactured home if they do not require one for other residential housing in that zoning category. This prevents cities from singling out manufactured homes for extra hurdles.
- By-right zoning required. Cities with zoning must allow new HUD-code manufactured homes by-right in at least one residential zoning classification (or equivalent district) and must show those areas on the zoning map.
- Local authority preserved. The law preserves local authority to determine exactly where and the size of the by-right permissible area for new manufactured homes—but cities can no longer exclude manufactured housing entirely.
- Limited exceptions. The law includes narrow carve-outs for:
- Private deed restrictions established before January 2, 2025
- Historic landmarks and local historic districts
- Very small cities without any commercial or industrial zoning (TMHA has identified only 14 exempt cities statewide)
Official Resources
- SB 785 Enrolled Bill Text — Full text of the law as passed
- SB 785 Bill Analysis — Legislative analysis and intent
- Texas Occupations Code Chapter 1201 — The statute SB 785 amends
- Texas Public Notices — Search the statewide database or sign up for keyword alerts via Smart Search
Frequently Asked Questions
SB 785 is a Texas law that modernizes how new HUD-code manufactured homes are zoned and where they are allowed in Texas cities. It requires cities with zoning regulations to permit manufactured homes by-right in at least one residential zoning district.
SB 785 takes effect September 1, 2026.
SB 785 applies to new HUD-code manufactured homes, as defined under federal and state law (42 U.S.C. § 5402(6); Tex. Occ. Code § 1201.003). It does not apply to pre-1976 mobile homes or used manufactured homes.
The law affects manufactured housing retailers, community owners and developers, installers, lenders, homebuyers, and cities regulating the placement of HUD-code homes through zoning.
No. Cities retain zoning and land-use authority. SB 785 limits the ability to single out or unfairly ban HUD-code manufactured homes compared to other housing types, but cities still decide where manufactured homes are appropriate within their jurisdiction.
No. SB 785 does not mandate placement in every zoning district. It requires that a city allow new manufactured homes by-right in at least one zoning district—which must apply to actual land within the city, not just exist as a theoretical category.
No. HUD construction, safety, and installation standards remain unchanged. SB 785 focuses on local regulation and placement, not how homes are built.
Possibly—but those standards must be reasonable, nondiscriminatory, and consistent with state and federal law, including other state preemption provisions (TEX. GOV'T CODE § 3000.002; Tex. Att'y Gen. Op. No. KP-0370 (2021)). Cities without zoning, like Houston and Horseshoe Bay, can enforce private deed restrictions.
SB 785 applies broadly. However, some existing MH communities could see their current nonconforming-use zoning designation change to permitted by-right zoning as cities achieve compliance—potentially without expanding the manufactured housing footprint beyond what existed before SB 785.
Cities are encouraged to review existing ordinances prior to the effective date to identify potential conflicts and reduce implementation issues. TMHA members should engage with local officials now to help shape how cities comply.
Retailers may see access to more cities or more areas within cities; engagement from local zoning officials and politicians to craft new placement policy for manufactured homes; improved consumer confidence; and enhanced public perception for modern, new manufactured homes.
Retailers should: review local zoning ordinances; engage local land use officials, staff, and elected officials; introduce new modern homes that would fit in specific proposed areas in a city; and sign up for local alerts for changing ordinances at Texas Public Notices.
Cities should: review zoning and development ordinances; consult legal counsel; and engage stakeholders early to ensure smooth implementation.
Send city examples, draft ordinances, or questions to TMHA and we'll keep this resource center updated.
Related Reading
- A Door is Opening for Manufactured Housing Across Texas — TMHA's member call to action
- From the 89th RECAP - TMHA's Priority Bills
- Manufactured Home vs Site-Built Cost Comparison
- Texas Average Annual Sales Price for Single & Multi-Section Manufactured Homes
SB 785 in the News
- Forget Everything You Think You Know About Manufactured Homes (Texas Real Estate Research Center)
- 89th Legislative Session Real Estate Wins: Housing Affordability (Texas Realtors)
- New Texas Laws Put State on Path to Improved Housing Affordability (Pew)
- Pew Applauds Texas Lawmakers for Passage of Much-Needed Housing Legislation (Pew)
- Texas lawmakers laid the foundation for a housing boom. Here's how. (Texas Tribune)
- How Texas improved housing affordability in 2025 (Texas 2036)
- Legislative Brief: Texas Manufactured Housing (National Zoning Atlas)
- How New Texas Laws Aim to Tackle Housing Shortage, Affordability Crisis Through Public-Private Partnerships (REBusinessOnline)
- State Legislatures Make Bipartisan Breakthroughs on Policies That Promote Housing (Pew)
Manufactured Housing Research
- Harnessing the Potential of Manufactured Housing to Expand Entry-Level Homeownership (Harvard Joint Center for Housing Studies)
- Equitable Zoning for Manufactured Housing (American Planning Association)
- Manufactured housing: the Ugly Duckling of affordable housing (Niskanen Center)
- Additional Manufactured Housing Could Benefit Millions of U.S. Homebuyers (Pew)
- Housing Reform in the States: A Menu of Options for 2025 (Mercatus Center)
- Manufactured Homes Increase in Value at the Same Pace as Site-Built Homes (Urban Institute)