The judge found last week that Goodman didn't pay more than market value for the rent, which is allowed by Texas law.
The commission had fined Goodman $10,000, alleging that while living in Austin during legislative sessions he used campaign money toward purchases of Austin real estate by paying his wife rent on property.
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State law prohibits the use of campaign funds for personal use, including the purchase of property.
Goodman, an Arlington Republican, lost to Democrat Paula Hightower Pierson in 2006 and said he believes the complaint filed against him hurt his re-election bid.
He appealed the commission's ruling, saying he wanted vindication.