By DJ Pendleton May 01, 2026

See for yourself

Viewing the manufactured-home construction process firsthand often changes perceptions. You can visit a sales center to walk through some homes, or contact DJ Pendleton (dj@texasmha.com) to arrange a factory tour. The quality, efficiency, and design of today’s manufactured homes demonstrate the opportunity they provide to expand housing options and support homeownership across Texas cities.

Modular homes (technically called industrialized housing) are different from HUD Code homes and are not covered by SB 785. Modular homes are a small segment of the factory- built housing market constructed to the statewide preemptive code—currently the 2021 IRC and 2015 IECC—and administered in Texas by the Texas Department of Licensing and Regulation.

Can you tell which of the houses on this page is a manufactured home?

It’s a trick question; they both are. The quality and aesthetics of manufactured homes surprise many people who have misconceptions about modern manufactured homes. Thanks to a law passed in the 89th Texas Legislature, manufactured homes are poised to provide one solution to the housing shortage in Texas, offering opportunities for homebuyers and REALTORS® alike.

What the new law does

Set to take effect September 1, SB 785 requires that cities cannot completely ban manufactured homes. Cities must allow new HUD Code manufactured homes somewhere within the city—either within an existing zoning category or in a newly created standalone zoning district—and that designated area must appear on the city’s zoning map. This is a meaningful step forward that will allow new HUD Code manufactured homes in some city markets where they are currently prohibited.

There are several important exceptions. The law preserves private deed restrictions and historic districts. It also exempts certain small cities that do not have industrial or commercial zoning. Even so, many Texas cities will likely need to make some level of zoning adjustment before the law takes effect.

SB 785 leaves specific zoning decisions largely in the hands of cities. Local governments retain broad discretion to determine where within their boundaries new HUD Code homes will be allowed. In short, cities get to choose the location—but they can no longer impose a blanket prohibition.

Manufactured homes must meet federal code requirements

For those unfamiliar with the terminology, “HUD Code manufactured homes” simply means homes built to the federal building code administered by the Department of Housing and Urban Development. Much like the International Residential Code (IRC) governs site-built homes, the HUD Code establishes the residential building standards for manufactured housing.

Manufactured homes operate under a federal preemptive code that overrides any state or local codes. That preemption is a major reason factory-built housing can achieve its efficiencies and lower construction costs—often around half the price per square foot of traditional site-built homes. Because the HUD Code is uniform nationwide, manufacturers can build homes to a single standard and ship them across state lines. A home built in a factory in Waco, for example, can be delivered anywhere in Texas or to neighboring states without redesigning the structure to meet dozens of local codes.

The HUD Code originated in 1976 and is regularly updated and modernized. In fact, the most recent update took effect in September 2025 and included more than 90 revisions and new requirements. The point is simple: HUD continually oversees, updates, and enforces the standards to ensure manufactured homes meet federal requirements for quality, durability, and safety. Today’s HUD Code homes offer a wide range of designs, sizes, amenities, and architectural styles. Put plainly, these are not your grandparents’ mobile homes.

How REALTORS® benefit from this new law

In some cities, the required zoning allowance will open opportunities for new infill development, greenfield projects, or small subdivisions. When manufactured homes are properly titled with the land as real property through the state’s title conversion process, they become permanent improvements just like any other home. That means they can be bought, sold, and financed through traditional real estate channels—creating new opportunities for REALTORS® to work alongside the manufactured housing industry to deliver attainable homeownership.

Many REALTORS® are directly involved in local policy—serving on planning and zoning commissions, advisory boards, and even city councils. For those involved in local decision-making, you can help dispel misunderstandings or outdated narratives about manufactured housing and encourage thoughtful, balanced policymaking as cities work toward compliance before the September 1 deadline.

When given a fair opportunity to integrate into a city’s housing landscape—alongside reasonable and good-faith development standards that reflect local market realities—manufactured housing can be part of a practical solution to housing supply challenges. The key is to apply thoughtful local standards that protect community character without layering on costly requirements that make the homes economically unattainable for the market they are meant to serve.

DJ Pendleton is the Executive Director of the Texas Manufactured Housing Association. Pendleton has been running TMHA for nearly 20 years, with a primary focus on state-level legislative advocacy.