Home › Guides › Selling a flood-damaged house in Houston
Selling a flood-damaged house in Houston: the 50% rule and your options.
By Captain Saves A Home · Published October 24, 2026 · Updated October 24, 2026 · 2 min read
After a flood, the first question is what it would cost to fix. In a floodplain, that number also decides which rules apply to your house.
Start with the damage estimate
Floodplain rules turn on how much damage there is. Under the substantial-damage test, a building is substantially damaged when the cost to repair it equals 50% or more of its market value, not counting the land. Houston Public Works guidance from 2018 says the substantial-damage process applies in the 100-year floodplain.
Under federal floodplain rules, a substantially damaged building generally has to be brought up to current floodplain requirements, such as elevation, before it is rebuilt. Ask the City of Houston's floodplain office for a determination on your address before you decide anything.
Houston's rule for building higher
In April 2018 the Houston City Council voted 9 to 7 to raise the standard for new construction. As reported by the Associated Press, new structures in both the 100-year and 500-year floodplains must be built 2 feet above the ground or above the projected water level of a 500-year flood. The earlier rule required 1 foot of height and applied only in the 100-year floodplain. The new rule was set to take effect September 1, 2018.
If your lot is in a floodplain and you are thinking about tearing down or rebuilding, these elevation rules can change the cost, and they can change what a buyer is willing to pay.
Your options
- Repair, then list. This can bring the highest price, but it takes money, permits, contractors and time, and in a floodplain the rules above may apply.
- Sell as-is. A cash buyer takes the house in its current condition, so you skip the repairs.
If you have an insurance claim or federal assistance in progress, ask your adjuster or an attorney how a sale could affect it before you sign anything.
What you must tell a buyer
Texas law requires sellers to disclose known material defects, whether or not they appear on the standard form. Flood damage you know about is the kind of thing a buyer is entitled to hear about. A seller who sells as-is still has to disclose; as-is changes who pays for repairs, not what you have to say.
Selling a flood-damaged house to us
We buy houses as-is, including homes with flood, foundation or roof damage. You do not need to repair, gut or clean out the house first. Start on our sell fast page and we will make you a clear cash offer.