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Yes, but if you're a competitive applicant and would like to move out of TX, it shouldn't stop you from applying both in and out-of-state.
 
Relative to non-Texas residents, yes.

This generally is only applicable to MD schools, or at least it was when I applied (when there was still only one DO school).

The argument generally is:
If we accept you, why would you come here when there are great schools in Texas that are three or four times cheaper?
If you don't have an acceptance in Texas, then what's wrong with you?

If you have a compelling reason against both of those questions that can be explained on a secondary, it's not a big deal. Otherwise, this is the base reason for why Texas have a difficult time obtaining OOS admission relative to many other applicants.
 
Texas is getting harder every year.
I got more MD interviews and acceptances OOS than in TX.
Go for it if you have the $
 
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