Houston vs Dallas: ADU Rules Compared

Side-by-side comparison of ADU zoning rules, costs, and rental potential. Updated 2026.

6/10Houston Score
vs 
6/10Dallas Score

Zoning & Size Limits

RequirementHouston, TXDallas, TX
Allowed ZonesHouston has no zoning code — ADUs are governed by deed restrSingle-family residential — but ADUs are generally NOT by-ri
Max Size (Detached)900 sq ft (typical city standard; verify against deed restrictions and any 1,000 sq ft / 50%-of-primary limits)800 sq ft (Dallas caps ADUs at 800 sq ft)
Max Size (Attached)900 sq ftGreater of 700 sq ft or 25% of the main dwelling's floor area (Dallas City Code §51A-4.510)
Max HeightConfirm with City of Houston Planning — governed b35 feet
Parking Required1 off-street parking space required for ADU (separate from pConfirm with Dallas Planning & Development — an additional o
Owner OccupancyNot required by the city (no citywide owner-occupancy mandatRequired — either the primary dwelling or the ADU must be ow

Setback Requirements

SetbackHouston, TXDallas, TX
Rear Setback5 feet15 feet
Side Setback5 feet5 feet
Front SetbackConfirm with City of Houston (front setback varies20 feet

Permits & Timeline

DetailHouston, TXDallas, TX
Permit Timeline60-90 days50-75 days
Permit Fees$3,000-$5,500$2,200-$3,800
Impact Fees$800-$1,500$900-$1,600
Pre-Approved PlansLimited pre-approval programAvailable for detached ADUs

Construction Costs

CostHouston, TXDallas, TX
Avg Build Cost$120,000-$240,000$115,000-$230,000
Cost Per Sq Ft$100-$200$130-$250
Garage Conversion$50,000-$130,000$55,000-$135,000
Prefab ADU$80,000-$190,000$80,000-$185,000

Rental Income Potential

RentalHouston, TXDallas, TX
1BR Avg Rent$1,100-$1,600/mo$1,150-$1,700/mo
2BR Avg Rent$1,400-$2,100/mo$1,450-$2,200/mo
Short-Term RentalsVaries by neighborhoodNot permitted in most areas
Est. ROI6-9% annual return6-8% annual return

Which City Is Better for ADUs?

Houston scores 6/10 while Dallas scores 6/10 on our ADU-friendliness index. Both cities offer viable ADU development opportunities — the best choice depends on your specific property, budget, and goals.

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