TX HB203

Creates a 10% annual cap on appraised value increases for single-family rental properties where the rent charged does not exceed the HUD-established fair market rent for that zip code

Requires property owners to file an annual application with the chief appraiser by May 1 to receive the limitation, with late applications accepted up to one year after the tax delinquency date

Excludes replacement structures from being treated as "new improvements" (which would bypass the cap) when rebuilt after casualty or storm damage, unless the replacement exceeds the original square footage or uses higher quality construction

Takes effect January 1, 2026, contingent on voter approval of a related constitutional amendment authorizing the legislature to impose such limitations on leased residential property

Includes a transitional provision expiring January 1, 2030, treating properties acquired before 2025 as if acquired on January 1, 2025, with their 2025 appraised value serving as the baseline for the limitation