Real Estate Investing in Killeen, TX: 2026 Market Guide

Real estate investing in Killeen, TX is a bet on one of the largest Army posts in the country. The typical Killeen home is worth about $216,000, and houses rent for around $1,595 a month.^1,2 That's a gross rent-to-price ratio of about 8.9%, well above most large U.S. cities.

Killeen grew from about 153,100 residents in 2020 to about 161,900 in 2025, a gain of about 5.7%.³ The city sits next to Fort Hood. The Army renamed the post Fort Hood again in 2025, after two years as Fort Cavazos, this time honoring Col. Robert B. Hood, a World War I officer.⁴ Fort Hood had about 34,500 active-duty soldiers in 2025, and many of the soldiers and families who live off post rent single-family rental homes.⁵

Why investors are watching Killeen in 2026

• Steady military demand. Fort Hood had about 34,500 active-duty soldiers and 44,400 dependents in 2025.⁵
• Housing allowances near local rents. The 2026 housing allowance for an E-5 with dependents at Fort Hood is $1,695 a month, up 7.2%, close to the average Killeen house rent.^6,2
• More soldiers on the way. The Army is moving the 116th Military Intelligence Brigade to Fort Hood starting in fiscal 2027, adding about 1,228 personnel.⁷
• Strong rent relative to price. At about 8.9% a year, the gross rent-to-price ratio leaves more room than in most big metros.^1,2

Killeen housing and rental market in 2026

Killeen prices have eased slightly. Zillow's typical home value of about $216,000 is down 1.2% from a year ago, and homes go under contract in around 46 days.¹

House rents are inching up. The average house rents for about $1,595 a month, up about $50 from a year ago, with about 718 houses listed for rent and an average of about 71 days on the market.² Across all rentals, including apartments, the average is about $1,250, up about $10, with about 1,511 rentals listed.²

• Typical home value: ~$216,000, down 1.2% year over year.¹
• House rent: ~$1,595 a month, up ~$50 year over year.²
• All rentals: ~$1,250 a month, up ~$10 year over year.²
• Days to pending: ~46 days.¹
• Gross rent-to-price: ~8.9% a year. Annual house rent ($1,595 × 12) ÷ typical home value ($216,149), before taxes, insurance, repairs and vacancy.

Gross rent-to-price is only a first screen. Before you invest in rental property, run the net numbers too, such as cap rate and cash-on-cash return, which account for taxes, insurance, repairs and vacancy. Texas has no state income tax and relies heavily on property taxes. Killeen homes pay city, Bell County and school district taxes, and some pay other local district taxes too, so check each property's full tax bill before you buy.

Jobs, growth and population: what's driving demand

Killeen's economy runs on Fort Hood. The Texas Comptroller estimates the post supported about 159,700 jobs and added about $37.9 billion to the Texas economy in 2025, with about 53,800 people working there directly.⁵ The Army is moving the 116th Military Intelligence Brigade from Fort Gordon, Georgia, with its headquarters and two battalions starting to arrive in fiscal 2027.⁷ On post, a $74 million project to replace 1950s barracks with a new 224-soldier building began in July 2026 and is due in spring 2029.⁸ Housing allowances matter here too. Soldiers who live off post get a monthly allowance, and the 2026 rates rose about 5% to 7% for most pay grades at Fort Hood.⁶

The city itself is under strain. In July 2026, Killeen's interim city manager warned that balancing the 2027 budget would take drastic cuts in services and staff, mostly because of the growing state disabled-veteran property tax exemption, which he said has cost the city more than $116 million since 2007.⁹ The council adopted the budget in September 2026 with a tax rate of 73.01 cents per $100 of value.¹⁰

Killeen neighborhoods and areas to know

North Killeen near Fort Hood

Older, lower-priced homes close to the post. Station42, a 368-unit mixed-income apartment complex aimed partly at military households, added new competition for renters.¹¹ Inspect older homes carefully.

Downtown Killeen

A small historic district that is slowly reviving. The city's restoration of an old western-wear store into a brewery sparked more than $15 million in private investment downtown and won a state award in 2025.¹²

South Killeen and Highway 195

Near Texas A&M University-Central Texas, where the city's economic development group is marketing the 94-acre Wolf Tech & Life Science Park.¹³ The park has infrastructure in place but is still recruiting tenants.

Southwest Killeen

Newer subdivisions along Stan Schlueter Loop. The city reopened a rebuilt Bunny Trail Road in December 2025 and says it will support growth in this part of town.¹⁴ Check HOA costs and new-home competition.

Comparing Texas markets? See our 2026 market guides to Abilene, Amarillo, Corpus Christi, Dallas, Fort Worth, Frisco, Garland, Houston, Laredo, Mesquite, Midland, Pearland, Round Rock, San Antonio, Sugar Land, The Woodlands, Tyler and Waco, or browse all of our real estate market guides by city.

Risks to weigh before investing in Killeen

• Army decisions and new supply. A rental market tied to one Army post can shift when units move or deploy. The same Army decision that brings the 116th Military Intelligence Brigade to Fort Hood cuts staff at four other posts.⁷ New apartments such as Station42 also add competition.¹¹ Understand real estate market cycles before you buy.
• Property taxes. Killeen raised its city tax rate to 73.01 cents per $100 of value for 2026-27, up from 70.14 cents, as disabled-veteran exemptions shrink its tax base.^10,9 Texas's 20% cap on yearly appraisal increases for non-homestead property is also scheduled to expire after 2026.¹⁵
• Insurance and hail. The average Texas homeowners premium was about $3,489 in 2025, and hail was the largest source of paid homeowners insurance losses in Texas in 2024.¹⁶ Get quotes and check the roof before you buy.
• Reliance on one employer. Fort Hood supports about 159,700 jobs, so troop cuts or long deployments would hit local rents and home prices.⁵ The city is also cutting services to balance its budget.⁹ Our guide to real estate market analysis walks through what else to check.

3 ways to invest in Killeen rental property, including fractional real estate investing

There are three common ways to invest in rental properties in a market like Killeen. They differ mainly in how much money you need up front and how much work you take on.

Buy a rental home yourself

Investment property loans typically require 20% to 25% down. On a $216,000 home, that's roughly $43,000 to $54,000 before closing costs and repairs. You also find tenants and handle maintenance, or pay a property manager. Our guide to choosing the right rental property covers what to check before you buy.

Buy a REIT or real estate fund

A REIT lets you invest with less money, but you own a slice of a large national portfolio rather than specific Killeen homes. See more ways to invest in real estate without buying property.

Invest in fractional real estate online

Fractional real estate lets you buy shares of individual rental homes instead of the whole property. With a real estate investment platform like Tirios, you can invest in real estate online starting at $100 per share, through the website or the Tirios app. Our guide to investing in rental property online explains how it works. The team handles tenants and maintenance, and rent is paid out as quarterly dividends, which makes it a hands-off way to earn passive income from real estate.