Texas Doubles Down on Investors: New Laws That Tilt the Playing Field
Texas has always been friendly ground for property investors, but the most recent legislative session made that advantage even clearer. Lawmakers passed a series of reforms that simplify ownership, protect landlords, and add transparency where investors need it most.
These changes start rolling out this fall and into 2026, and while some are technical, together they make Dallas and its suburbs an even stronger bet for rental property owners. From homeowner associations to hidden subdivision taxes, from faster evictions to limits on foreign buyers, the message is simple: Texas wants to keep real estate attractive to local investors.
Here are the five highlights you should know about and what they mean for your portfolio.
Homeowner and Condo Association Transparency
What changed: Associations are now required to post more of their rules and documents online, resale fees for condos are capped, and members have easier access to information. Related measures also protect owners from unnecessary fines during drought restrictions, ensure the right to install solar panels, and stop associations from banning political gatherings in common areas.
What it means: If you own or are considering buying in an HOA or condo association (most modern homes are), you will face fewer surprises. Whether it is knowing what the resale fees are before you close or having confidence that solar roof tiles cannot be blocked, there is more predictability built into the process.
Why it matters for investors: Dallas is filled with subdivisions and townhome communities where HOAs are a fact of life. The new transparency rules help you evaluate deals more accurately before buying and reduce headaches after you close. For long-term landlords, it means clearer operating conditions and fewer unexpected restrictions.
PID Transparency
What changed: Public Improvement District assessments, which fund infrastructure and amenities in many new subdivisions, must now be clearly shown on appraisal district websites. Sellers are also shielded from liability if counties have not properly recorded PID information.
What it means: You will be able to see at a glance whether a property carries additional annual assessments, rather than discovering them late in the process. For new builds and suburban developments, this closes an information gap that has tripped up both buyers and lenders.
Why it matters for investors: PIDs can add hundreds or even thousands of dollars a year to a property’s carrying costs, eating into cash flow. Having this information visible upfront allows you to underwrite deals more accurately and avoid being caught off guard after purchase.
Housing Availability and Affordability
What changed: Several measures were passed to encourage more housing supply. Cities over a certain size must now allow smaller minimum lot sizes, starting at 3,000 square feet. Office buildings at least five years old can be more easily converted into multifamily or mixed-use residential projects. Zoning amendments have been streamlined to speed development.
What it means: Texas is opening more pathways to get housing built, whether through higher-density subdivisions, adaptive reuse of older commercial buildings, or faster rezoning. This reinforces the state’s pro-growth stance.
Why it matters for investors: A steady pipeline of new housing is critical in a fast-growing metro like Dallas. More development means more opportunity to buy, rent, and manage properties that meet Section 8 and workforce housing demand. For long-term investors, it signals that the state is not interested in restricting supply in ways that choke off rental opportunity.
Foreign Ownership Restrictions
What changed: Texas will soon prohibit real estate purchases and long-term leases by individuals or entities from countries identified as security risks, such as China, Russia, Iran, and North Korea. Lawsuits are already challenging the measure, but it is slated to take effect this fall.
What it means: Foreign nationals from certain countries will no longer be able to buy property in Texas, except for limited exemptions such as owner-occupied homesteads for legal residents.
Why it matters for investors: International buyers have historically made up only about 2 to 3 percent of transactions in Texas, with Chinese nationals representing roughly half a percent to one percent of that share. For most local investors, this means less competition at the margins rather than a market shake-up. The headline value is more about Texas signaling that it wants its housing market kept open primarily for domestic buyers.
Eviction and Squatter Removal Reforms
What changed: The eviction process has been streamlined to create more uniformity across the state, and landlords now have a faster path to recover possession. Law enforcement is also empowered to remove squatters when certain conditions are met, closing a loophole that forced many owners into lengthy civil proceedings.
What it means: Property owners regain control of their assets more quickly and with less procedural friction. Squatter cases in particular will no longer drag on for months.
Why it matters for investors: Vacancy is the biggest expense in rental real estate. The faster you can move from a non-paying or unauthorized occupant to a paying tenant, the stronger your returns. These changes reinforce Texas’ reputation as a landlord-friendly state, which is one of the reasons investors consistently prefer Dallas over markets with slower or more tenant-heavy legal systems.
The Bigger Picture
Put together, these reforms do not just tinker at the edges. They improve transparency, reduce hidden costs, protect owners, and maintain Texas’ pro-investor posture. For anyone holding or planning to acquire property in Dallas, it means a more predictable and favorable environment for long-term rental success.
At SolMidas, we believe the right framework matters as much as the right property. With these new laws on the books, the framework just tilted further in favor of investors. If you are considering your next move, let’s talk about how these changes shape the opportunities ahead.