@Phillip Lanier I am sure that it varies by locality and how ornery the inspector is. You could open yourself up to major expenses. If the value of adding the bonafied 400 sq ft bedroom warrants it, it may be worth it. 400 x $70 = $28000 more in value. I'm not sure if it really works that way.
I'm sure most places will consider it, after all they want a reason to tax the property more.
A lot of properties close the garage in like this and It seems to me that those homes stay on the market much longer at a lower price. My theory is that Most people know how uncomfortable garages get in this Texas weather and it turns people off. Just putting in a wall where the garage doors once stood doesn't change that much. If done right you could at two 200 sq ft rooms in some of these garages.
I personally hate the idea, if you want a man cave or tv room use it for that and still leave the garage doors on, then you still have the option of parking the car inside during a hail storm.