For the first time in more than two decades, manufactured homes can legally be placed on residential lots in Nacogdoches, Texas. The Nacogdoches City Council voted unanimously Tuesday night on all three steps required to comply with Senate Bill 785, a state law that prohibits Texas cities from outright banning HUD-code manufactured homes in residential areas. The vote took place on August 4, 2026, just weeks before the law takes effect September 1.
The changes end a ban that has been in place since around 2004 and open the door to more affordable housing options in the East Texas city. Passed in 2025 to address a statewide shortage of affordable homes, SB 785 mandates that cities create at least one residential zone that allows manufactured homes by right, meaning without a special permit. According to the Texas Manufactured Housing Association, roughly 40% of Texas cities — more than 1,200 municipalities — currently have zoning codes that effectively ban mobile home parks or manufactured homes.
Nacogdoches now joins a growing list of Texas cities racing to comply with the new state mandate before the September 1 deadline. The city’s approach—creating a new zoning district and immediately rezoning one existing neighborhood—offers a roadmap for other municipalities facing the same requirement.
The decision
What Nacogdoches approved
Three separate votes brought the city into compliance with state law
“This culminates a monthslong discussion of how the city can be compliant with state legislation,” said Mike Neu, Nacogdoches Executive Director of Development and Infrastructure. City staff spent months researching options, engaging neighborhood groups, and working with a zoning ordinance subcommittee before bringing proposals to the council.
The city’s Planning and Zoning Commission on July 13 voted to recommend creation of new residential zoning to be known as R-3M. The zoning would allow manufactured homes less than two years old on single family lots, along with traditional single family homes and two-family homes. It would exclude RVs and multifamily apartments.
The council’s three votes on August 4 updated the city’s comprehensive plan, created the new R-3M zoning district, and rezoned the Millard’s Apple Park subdivision to the new designation. Millard’s Apple Park, a 30-acre, 69-lot residential area near Woden Road and Apple Boulevard, was selected because it already includes manufactured homes throughout and is currently zoned for single and two-family homes.
The new R-3M district requirements
Under the new rules, only manufactured homes no more than two years old and never previously lived in would be eligible for placement in R-3M districts. The city added supplemental regulations designed to maintain neighborhood standards. The R-3M designation permits traditional single-family homes, two-family homes, and qualifying manufactured homes on individual lots, but excludes recreational vehicles and multifamily apartment buildings.
State mandate
Understanding Texas Senate Bill 785
The law reshapes how cities can regulate manufactured housing across the state
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. The legislation was passed during the 2025 legislative session and takes effect September 1, 2026.
SB 785 applies to new HUD-code manufactured homes, as defined under federal and state law. It does not apply to pre-1976 mobile homes or used manufactured homes. HUD-code manufactured homes are structures built according to federal standards established by the U.S. Department of Housing and Urban Development on or after June 15, 1976.
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. However, 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.
The full text of the law is available on the Texas Legislature’s website. Cities had until September 1, 2026, to bring their zoning codes into compliance.
Why the state passed this law
SB 785 reflects a targeted and measured approach to addressing one of Texas’s most pressing issues: the shortage of affordable housing. It does so by curbing discriminatory or overly restrictive municipal regulations that block the installation of new HUD-code manufactured homes. These homes are federally regulated, built to rigorous safety standards, and offer a cost-effective housing solution for many working-class Texans. The Texas Manufactured Housing Association had advocated for this type of legislation for decades before its passage in 2025.
Local impact
What this means for Nacogdoches homebuyers
The changes create new pathways to homeownership in a city that had banned manufactured homes for over 20 years
Neu told the council the city eliminated manufactured home permissions by right around 2004. “As of today, we do not allow manufactured homes in any of our residential districts — there is no by-right ability for property owners to install manufactured homes on a single lot,” said Mike Neu, director of development and infrastructure.
Under current city code, any manufactured home that exists within city limits is considered nonconforming, meaning property owners face significant restrictions on replacing, upgrading, or expanding those homes. “That puts restrictions on homeowners and property owners to potentially replace a manufactured home or upgrade a manufactured home or expand a manufactured home because they’re already non-conforming,” Neu said.
The new zoning changes this immediately. Property owners in the Millard’s Apple Park neighborhood can now replace aging manufactured homes with new ones that meet the city’s two-year age requirement. And while only Millard’s Apple Park was rezoned on August 4, city staff identified three additional areas across Nacogdoches as compatible with the new R-3M designation in the future land use plan.
The future land use designations only signal where the city would be open to rezoning requests in the future – they do not change any property owner’s current entitlements. If no property owner in those areas ever requests a rezoning, nothing changes. Property owners in those areas would need to formally request rezoning to R-3M before being able to place a manufactured home.
For buyers considering manufactured housing in Texas, the cost advantage remains significant. Using a regression model based on the most recent April 2026 Producer Price Index for manufactured housing data, the forecasted average multi-section sales price is estimated at $158,500 (+/- $9,300) for multi-sections and $86,700 (+/- $6,300) for single-section homes, according to the Texas Manufactured Housing Association. That compares to Texas site-built homes averaging $302,187 in April 2026, according to Zillow data cited in city planning documents.
Buyers interested in manufactured housing in Texas should explore all available Texas homebuying programs, including options for manufactured home financing. Manufactured homes on owned land qualify for FHA, VA, and USDA loans when properly installed on permanent foundations. Those exploring zero-down and low-down-payment programs should note that VA loans require no down payment for eligible veterans purchasing qualifying manufactured homes.
Statewide movement
Other Texas cities facing the deadline
More than 1,200 municipalities must comply by September 1
Nacogdoches is far from alone in scrambling to meet the September 1 deadline. With roughly 40% of Texas cities currently maintaining effective bans on manufactured housing, hundreds of municipalities are in the same position. Each city retains discretion over how to comply—they can choose which residential district to designate, set age and aesthetic requirements, and determine the size of the area where manufactured homes are permitted by right.
The Texas Manufactured Housing Association has been working with cities across the state to facilitate compliance. Passage of SB 785 was a major state-level legislative victory and finally fulfilled the key legislative priority that TMHA has advocated for decades. But the state-level law was just the start, the outcome depends on how cities choose to implement the law.
Cities that fail to comply by September 1 could face legal challenges from property owners or developers seeking to place manufactured homes. The law’s requirement is clear: cities with zoning must allow new HUD-code manufactured homes by right in at least one residential district and must show those areas on their zoning maps.
For buyers in other Texas cities, the practical advice is to check local zoning codes carefully before purchasing land or signing a contract for a manufactured home. Even after September 1, the specific location where you can place a manufactured home will vary by city. Contact your city’s planning department to confirm which districts permit manufactured housing and what requirements apply.
Quick answers
Nacogdoches manufactured housing: common questions
Can I place a manufactured home anywhere in Nacogdoches now?
No. The August 4 vote created a new R-3M zoning district that permits manufactured homes, but only one neighborhood—Millard’s Apple Park—was actually rezoned to R-3M. The city identified three other areas as compatible with R-3M zoning in its future land use plan, but property owners in those areas would need to request rezoning before placing a manufactured home. Manufactured homes are still not permitted by right in the city’s R-1, R-2, R-3, or R-4 residential districts.
What are the requirements for manufactured homes in the R-3M district?
Manufactured homes must be no more than two years old and never previously lived in. They must be HUD-code manufactured homes built on or after June 15, 1976, according to federal standards. The homes must meet all applicable building codes and installation requirements. Traditional single-family homes and two-family homes are also permitted in R-3M districts, but RVs and multifamily apartments are excluded.
When does Texas SB 785 take effect?
The law takes effect September 1, 2026. All Texas cities with zoning regulations must allow new HUD-code manufactured homes by right in at least one residential district by that date. Cities that fail to comply could face legal challenges from property owners seeking to place manufactured homes.
How much do manufactured homes cost in Texas compared to site-built homes?
According to April 2026 data from the Texas Manufactured Housing Association, the average multi-section manufactured home costs approximately $158,500, while single-section homes average $86,700. This compares to an average of $302,187 for Texas site-built homes in April 2026, making manufactured homes roughly 48% to 71% less expensive than traditional construction, depending on size and features.
Can I get a mortgage for a manufactured home in Texas?
Yes. Manufactured homes on owned land that are properly installed on permanent foundations qualify for FHA, VA, and USDA loans. VA loans require zero down payment for eligible veterans. FHA loans typically require 3.5% down. Conventional loans through Fannie Mae and Freddie Mac are also available for manufactured homes that meet specific requirements. Chattel loans (personal property loans) are available for manufactured homes not on permanent foundations, though they typically carry higher interest rates.
What other Texas cities have banned manufactured housing?
According to the Texas Manufactured Housing Association, roughly 40% of Texas cities—more than 1,200 municipalities—have zoning codes that effectively ban mobile home parks or manufactured homes. All of these cities must come into compliance with SB 785 by September 1, 2026, by designating at least one residential district where manufactured homes are permitted by right.