1st Advantage MortgageFor Killeen, TX rentals, the DSCR test compares rent to the full payment. The Census medians that frame it are $1,208 rent, $215,400 value and $3,275 in yearly taxes.
Killeen rents, values and tenants
Start with the two numbers every DSCR file turns on. Rent in Killeen runs a median $1,208 a month (about 14% below the Texas median of $1,403), and the median owner-occupied home is worth $215,400. Annual median rent is about 6.7% of the median home value in Killeen. That is close to the range investors often call workable, but it blends every housing type, so a house on a specific street needs its own rent comparables.
| Indicator | Texas | Killeen | Difference |
|---|---|---|---|
| Persons per household | 2.69 | 2.64 | |
| Share in 2-4 unit buildings | 5.3% | 15.9% | +202% |
| Share of homes detached | 64.4% | 61.2% | -5% |
| Long commuters, 45 min plus | 16.9% | 17.5% | +4% |
| Degree holders, age 25+ | 33.8% | 21.9% | -35% |
| Workers on their own account | 10.5% | 7.0% | -33% |
| Renters paying 30%+ of income | 51.7% | 53.3% | +3% |
| Units sitting vacant | 9.4% | 9.2% | -2% |
| Annual rent divided by value | 5.9% | 6.7% | +13% |
| Households that rent | 37.4% | 50.5% | +35% |
| Annual property tax bill, median | $4,232 | $3,275 | -23% |
| Household income, median | $78,476 | $60,977 | -22% |
| Typical owner-occupied value | $283,800 | $215,400 | -24% |
| Typical monthly rent | $1,403 | $1,208 | -14% |
| Residents (Census estimate) | 30,188,424 | 158,159 |
Renting is the norm for many Killeen households: 50.5% are renters, well above the Texas median of 37%. Against a median household income of $60,977 (about 22% below the Texas median of $78,476), 53% of renters report rent at or above 30 percent of income.
The kind of housing in Killeen
A buyer in Killeen can choose among houses (61% of units), small multifamily (16%) and mid-sized apartment buildings (10%), which makes the property type the first underwriting decision. A median construction date of 1996 points to growth-era housing, where HOA leasing limits and new-build rent comparables are the bigger questions.
Vacancy is a quiet driver of rent. 9% of homes are vacant citywide and 6.9% of the rental inventory was listed for rent when the Census surveyed.
Underwriting angles in Killeen
With a gross ratio near 6.7%, Killeen rewards buyers who negotiate price and shop insurance, because the margin above the lender's threshold is not wide. Newer construction (median built 1996) lowers near-term repair risk, but association rules and builder-grade finishes can limit rent growth. Because 51% of households rent, vacancies tend to refill, and the pricing question is how much to charge relative to nearby units.
Carrying costs in Killeen
Tax drag is easy to underestimate. Killeen owners report a median $3,275 in annual real estate taxes, about 23% below the Texas median of $4,232, an effective 1.52% of median home value. In rent terms, the tax bill equals roughly 23% of twelve months of median rent.
Bell County carries a relatively moderate overall rating in FEMA's National Risk Index, where lightning (very high), hail (relatively high) and tornadoes (relatively high) rank highest.
| Hazard in Bell County, FEMA index | Level |
|---|---|
| Winter weather exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Hail exposure | Relatively High |
| Lightning exposure | Very High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Price the insurance before you price the offer: a landlord quote for the Killeen property, plus flood cover where the map requires it, goes into the payment your rent is divided against.
The ratio in Killeen dollars
The quick test for Killeen: rent of $1,208 divided by a 1.25 ratio allows a total payment of $966, and subtracting $273 in monthly taxes leaves $693 for the loan, insurance and dues. At 1.00 the allowance is the full $935.
Legal checks before a Killeen purchase
Local rental rules in Killeen are not summarized here because we could not verify them from a city source. Ask the city and Bell County about registration, inspection and short-term rental requirements, and confirm what an HOA allows. Guests who book by the night in Killeen are taxed under state law as follows. Texas imposes a state hotel occupancy tax on rentals of 29 days or less, collected by the owner unless a booking platform collects for the owner, and cities, counties and special districts can add a separate local hotel tax that the owner must register for and remit.
For a Killeen lease, the Texas deposit rule is No statutory cap, as set out in Tex. Prop. Code §§ 92.103, 92.104, 92.107. Plan for a 30 day return window on any Killeen deposit once the tenant moves out. On entering a unit, Texas says: No statute; entry rules come from the lease.
How Killeen stacks up against its neighbors
Waco's median home value of $221,700 is the group's floor and Austin's $555,300 its ceiling, while Killeen is $215,400.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Austin | 57% | $8,024 | $555,300 | 979,539 | $1,729 |
| Waco | 51% | $3,537 | $221,700 | 143,570 | $1,165 |
| Round Rock | 44% | $6,424 | $418,600 | 127,786 | $1,763 |
| Killeen | 51% | $3,275 | $215,400 | 158,159 | $1,208 |
Employers and institutions near Killeen rentals
Self-employed workers, incorporated or not, make up 7.0% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. The same survey shows government workers are about 22% of employment, 22% of adults hold a bachelor's degree or higher and 17% of commuters travel 45 minutes or more.
Employers named in Wikipedia's Killeen entry for 2024 include III Corps & Fort Hood, Military Defense Contractors & Others, Killeen Independent School District, Civilian Personnel Office and Central Texas College, which is where many tenants earn the income that pays rent. Campuses such as Central Texas College, Texas A&M University-Central Texas and Temple College pull tenants into Killeen, and landlords near them can plan around move-in seasons. Killeen offers interstate access via I-35 and air service through Killeen Regional Airport, details that affect commute times and how easily a distant investor can inspect a property.
Next steps for a Killeen purchase
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Killeen address, check them in the calculator, and begin your application or get a quote first.
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Sources
- FEMA county hazard table
- Wikipedia: Killeen, Texas
- Killeen landlords: see Tex. Prop. Code §§ 92.103, 92.104, 92.107
- Texas Comptroller, hotel occupancy tax
- Hotel tax FAQ for short-term rentals (Texas)
- ACS 2020 to 2024 estimates for Killeen
Census figures are 2020 to 2024 ACS five-year estimates for Killeen and carry margins of error. Landlord rules for Killeen rest on Texas statutes and the CC BY 4.0 RedFlagLease dataset. Last reviewed October 2026; the city and county have the final word on Killeen rules.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Lease or market rent: what counts in Killeen?
On most files the lender uses the lower of the signed lease rent and the appraiser's market rent for the address in Killeen. For orientation, the Census median gross rent here is $1,208 a month.
How do taxes and insurance affect a DSCR loan in Killeen?
Yes, the payment includes principal, interest, taxes, insurance and association dues. At the Killeen median rent of $1,208, a 1.25 ratio allows about $966 in total payment, of which roughly $273 a month goes to median taxes.
What does Bell County charge in property tax, in practice?
Median taxes paid are $3,275 a year, or 1.52% of median value, compared with 1.49% statewide. Ask Bell County's tax office what the bill becomes after your sale.
Will a lender count nightly rental income at a Killeen property?
It depends on the program and on local law. A Killeen owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
Are there deposit limits for Killeen rentals?
Start with Tex. Prop. Code §§ 92.103, 92.104, 92.107. The limit: No statutory cap. Return window: 30 days. Talk to a Texas attorney for a lease form that matches.
How exposed is Killeen to natural hazards?
The county scores relatively moderate overall in FEMA's index, with lightning leading. Parcel-level flood maps and a real insurance quote give the answer that counts.
Is an entity required for a TX DSCR loan?
You do not need one, and many investors close in an entity. If you use an LLC, the lender asks for formation documents and usually a personal guaranty. Talk to your attorney and accountant about structure for a Texas property.