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What is a MUD District? Houston, TX
What is a MUD District?
One of the most common questions I get from first-time buyers or from buyers from other areas is, "What is a MUD District?"

A MUD District is a Municipal Utility District.  I’ve always thought that it seems like an odd group of initials to refer to the source of drinking water for hundreds of suburban neighborhoods.  It doesn’t sound very enticing.  MUD’s provide water and sewer services to homes, usually in the suburbs, and outside the city limits.  If you live in a MUD District, you are not paying the city for your water and sewer services, so you instead pay MUD taxes based on the value of your home and a monthly fee based on the amount of your water usage.  
Chances are that your taxes will be similar whether you 1) live in the city, have city water and pay city taxes, but no MUD tax or 2) live in the suburbs and do not pay city taxes, but do pay MUD taxes.  On the other hand, you can live on property that has well and septic and not have to pay for city water nor MUD fees.
When your purchase a home in a ... more

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