Houston investor due diligence: taxes, flood risk & restrictions

Use address-specific records and professional quotes before committing to a purchase.

Check flood exposure beyond a map label

Review the FEMA Flood Map Service Center, seller disclosures and available flood or drainage history. Ask an insurance professional about flood coverage for the specific property. Most homeowners policies exclude flood damage, and a lower-risk designation does not mean no flood risk.

Verify property taxes and exemptions

Texas property taxes are locally assessed and administered. Review the parcel’s appraisal record and all taxing units, including applicable special districts. Residence homestead eligibility requires use as a principal residence; do not assume a seller’s exemptions transfer to a rental investment.

Read restrictions and verify intended use

Review deed restrictions, HOA rules and local requirements for leasing, short-term rental use, renovations and construction. For land, verify access, easements, utility availability, drainage, survey and development requirements. An “unrestricted” description is not a substitute for records review.

Independent resources

• FEMA Flood Map Service Center
• NFIP: flood insurance eligibility and coverage considerations
• Texas Comptroller: property tax exemptions
• Harris Central Appraisal District
• Montgomery Central Appraisal District

Confirm current requirements with the relevant district, jurisdiction and qualified professionals. Reviewed November 3, 2026.