Zoning law explained

Texas 2025 Housing Laws Explained: SB 840, SB 15, and What They Let You Build

What Texas SB 840 (apartments in commercial zones) and SB 15 (3,000 square foot minimum lots) allow, which cities they cover, the exclusions, and the status of both laws as of October 2026.

By Nathan Robinson, Founder, Plotzy Published 6 min read

In 2025 the Texas Legislature passed housing laws that took effect September 1, 2025. Senate Bill 840 lets apartments and mixed-use residential projects be built in office, commercial, retail, and warehouse zones without a rezoning. Senate Bill 15 bars cities from requiring lots larger than 3,000 square feet in new single-family subdivisions on larger tracts. Both apply only in cities with more than 150,000 people that are in counties with more than 300,000 people.

SB 840: residential in commercial zones

SB 840 added Chapter 218 to the Local Government Code. Under the enrolled text, a covered city must allow multifamily residential (three or more dwelling units) and mixed-use residential (at least 65 percent residential by square footage) in any zoning classification that allows office, commercial, retail, warehouse, or mixed use.

A covered city may not do any of the following for these projects:

  • Limit density below 36 units per acre or the highest residential density allowed in the city, whichever is greater.
  • Limit height below 45 feet or the height that would apply to an office, commercial, retail, or warehouse building on the site, whichever is greater.
  • Require a setback or buffer greater than 25 feet or the one that would apply to a commercial building on the site, whichever is less.
  • Require more than one parking space per unit, or a multilevel parking structure.
  • Restrict the ratio of building floor area to lot area.

If the project meets the city's land development regulations, the city must approve the permit administratively and may not require further action by the governing body.

Conversions. For an office, retail, or warehouse building at least five years old, where at least 65 percent of the building becomes residential, a city may not require a traffic impact analysis or additional parking. A companion law, SB 2477, addresses office conversions specifically.

SB 15: smaller lots

SB 15 added Subchapter D to Chapter 211 of the Local Government Code. Under the enrolled text, on a tract that is five acres or more, has no recorded plat, and is zoned for single-family homes, a covered city may not require a residential lot to be larger than 3,000 square feet, wider than 30 feet, or deeper than 75 feet.

For a "small lot" (4,000 square feet or less), a city may not require:

  • A front setback over 15 feet, a rear setback over 10 feet, or a side setback over 5 feet.
  • More than one parking space per unit, covered parking, or off-site parking.
  • More than 30 percent open space or permeable surface.
  • Fewer than three full stories.

Who and where they apply

Both laws apply to a municipality with a population of more than 150,000 that is wholly or partly in a county with a population of more than 300,000. Texas statutes measure population by the most recent federal census. By 2020 Census counts, 19 cities meet both tests: Arlington, Austin, Brownsville, Corpus Christi, Dallas, El Paso, Fort Worth, Frisco, Garland, Grand Prairie, Houston, Irving, Killeen, Lubbock, McKinney, Mesquite, Pasadena, Plano, and San Antonio. Laredo and Amarillo are over 150,000 but sit in counties under 300,000.

SB 840 does not apply in a zoning classification that allows heavy industrial use, within 1,000 feet of an existing heavy industrial use or development site, within 3,000 feet of an airport or military base, or in a designated clear zone or accident potential zone.

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SB 15 does not apply within 3,000 feet of an airport or military base, within 15,000 feet of a military base boundary in a designated military airport overlay zone, or within one mile of a law enforcement training center in a county of 2.6 million or more.

Key dates

  • June 20, 2025: the Governor signed SB 840, SB 15, SB 2477, and HB 24, which raised the threshold for neighbors to protest a rezoning that adds housing.
  • September 1, 2025: all four took effect.
  • January 2027: the next regular legislative session convenes, when amendments could be considered.

Current status

As of October 2026, both laws are in effect as passed. According to press reports, some covered cities have adopted local standards for SB 840 projects, such as minimum building heights and amenity requirements, so read the city's current ordinance as well as the state law.

What this lets you build

Under SB 840. A parcel zoned for office, commercial, retail, warehouse, or mixed use in a covered city, and outside the exclusions, can take an apartment or mixed-use residential project at 36 units per acre or more and 45 feet or more, with no rezoning, variance, or council vote.

Under SB 15. An unplatted tract of five acres or more in a single-family zone can be platted into lots as small as 3,000 square feet, with homes up to three stories.

What limits remain.

  • SB 840 leaves in place city rules on short-term rentals, water quality, stormwater, building codes, and historic preservation.
  • SB 15 lets cities charge impact fees and ordinary permitting fees, require shared driveways, and apply uniform stormwater rules.
  • Deed restrictions. SB 15 states that it does not prevent owners from enforcing deed restrictions or homeowners association rules. Chapter 218 contains no provision on private covenants. Review title.

How to check a specific parcel

  1. Confirm the city is one of the 19 covered.
  2. Confirm the zoning classification. For SB 840, check whether the district allows any heavy industrial use.
  3. Measure distance to airports, military bases, and (for SB 840) existing heavy industrial sites.
  4. For SB 15, confirm acreage and that no plat is recorded.

For background, see our Texas zoning report and Austin zoning guide. In Plotzy, filter parcels by zoning designation and lot size, then ask Zoning AI "Does this district allow any heavy industrial use?" for an answer with the code section cited.

Frequently asked questions

What does Texas SB 840 do?

It requires large Texas cities to allow multifamily and mixed-use residential projects in zones that allow office, commercial, retail, warehouse, or mixed use, with administrative approval.

What is the minimum lot size under Texas SB 15?

On qualifying tracts in covered cities, a city cannot require a lot larger than 3,000 square feet, wider than 30 feet, or deeper than 75 feet.

Which Texas cities do SB 840 and SB 15 apply to?

Cities with more than 150,000 people in counties with more than 300,000 people. By 2020 Census counts, that is 19 cities.

Do deed restrictions still apply?

Yes. SB 15 expressly preserves deed restrictions and homeowners association rules, and SB 840's chapter says nothing about private covenants.

Sources

The bills, statutes, court decisions, and agency documents cited on this page were checked on October 4, 2026. These laws have been amended and litigated since they passed, so confirm the current text and status before relying on any detail. This page is general information, not legal advice.

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