Fort Hood is one of the largest Army installations in the country, and Killeen's housing market is built around it. Investors here have built thousands of rental homes and duplexes for military families.
In short: LendingStreet finances ground-up construction of 1-8 unit investment property in Killeen, Harker Heights, Copperas Cove, Nolanville, Belton and Temple. Loans are sized on loan-to-cost, funded through inspected draws and priced per project. Build-to-rent homes and duplexes for military households are the main projects, and property taxes are the biggest line to plan for.
Killeen itself has large areas of newer subdivisions on its south and west sides, close to the post. Harker Heights, to the east, has higher values and newer schools. Copperas Cove, in Coryell County to the west, sits near the post's west gate.
Nolanville, between Harker Heights and Belton, has grown quickly. Belton and Temple, farther east along I-35, have broader civilian economies with health care and distribution employers, and Salado offers higher-end lots.
Lot prices are lower than in Austin, about an hour south, which is part of why so many builders and investors are active here.
| Area | Common build | What to check |
|---|---|---|
| South and west Killeen | Build-to-rent homes, duplexes | Competing new supply |
| Harker Heights | Higher-end rentals and spec homes | Lot prices |
| Copperas Cove | Rentals near the west gate | Coryell County taxes |
| Nolanville, Belton, Temple | Spec and rental homes | Civilian demand, school districts |
We look at total project cost, meaning land, hard construction costs and soft costs such as plans, engineering, permits and fees, and size the loan as a share of that figure. That share is set per project.
Funds go out in stages after inspections confirm the work, not as a lump sum. Use the draw schedule calculator to map foundation, framing, rough-ins, drywall and finish against your budget so the cash you bring and the draws line up.
Soldiers and families move on and off the post on regular cycles, and many rent for the length of an assignment. Three- and four-bedroom homes with garages and fenced yards, and duplexes for smaller households, are the standard product.
Builders have produced a large amount of rental housing in recent years, and rents in newer subdivisions compete with each other. Location, finish quality and price matter more when many similar homes are available.
Service members can end leases early on orders under federal law, so turnover is part of the business. Budget realistic vacancy.
Killeen, Harker Heights, Copperas Cove, Nolanville, Belton and Temple each issue their own permits, and Bell and Coryell counties handle unincorporated areas. Texas has no statewide residential contractor license, so check your builder's record and references carefully.
Some newer subdivisions sit in municipal utility districts or public improvement districts, which add assessments to the tax bill. Check for them before buying a lot.
Much of the area sits on limestone and clay, and foundation design matters. Builders commonly use post-tension slabs engineered for local soils. Ask for the soils report and foundation engineering as part of the plan set.
We fund investors and builders putting up 1 to 8 units in and around Killeen, usually through an LLC, and you sign for the loan personally. Our investor loans are business-purpose loans on non-owner-occupied property.
Expect questions about your last few completed projects, your general contractor's license and insurance, and how the budget was built. Files missing plans or permits, or run by a first-time builder without an experienced GC, generally do not move forward.
Texas has no state income tax, and local governments rely on property taxes. Investors do not get homestead exemptions, so a new rental is taxed on its full appraised value by the Bell or Coryell appraisal district.
Central Texas has hail and severe storm risk, which affects insurance premiums and deductibles. Get a quote before the build is done so the refinance math is accurate.
Water and wastewater impact fees and tap fees vary by city in Bell County. Ask the city for its current fee schedule, because these costs can differ meaningfully between Killeen, Harker Heights and Nolanville.
This example is illustrative and not a quote. An investor builds two three-bedroom units with garages on a lot zoned for two-family use near the post. Land costs $40,000, hard construction costs $290,000 and soft costs $20,000, for a total project cost of $350,000. For illustration the loan covers 80% of cost, or $280,000, and the investor brings $70,000 plus closing costs; actual LTC is set per project.
At completion the appraisal comes in at $395,000, with total rent of $3,200 a month. Refinancing into a DSCR loan at 75% of value gives $296,000, which pays off the $280,000 construction balance. With estimated principal and interest of about $2,019, taxes near $700 and insurance near $160, the monthly payment is about $2,879 and the ratio is about 1.11x.
Taxes are more than a fifth of the rent here. A lot in a MUD or PID would raise that figure further.
| Item | Amount |
|---|---|
| Land | $40,000 |
| Hard costs | $290,000 |
| Soft costs | $20,000 |
| Total project cost | $350,000 |
| Construction loan (80% of cost, illustrative) | $280,000 |
| Investor cash before closing costs | $70,000 |
| Completed value | $395,000 |
| DSCR refinance (75% of value) | $296,000 |
| Monthly rent | $3,200 |
| Estimated principal and interest | $2,019 |
| Taxes and insurance | $860 |
| Estimated DSCR | About 1.11x |
Most investor builds here are held and refinanced into a DSCR loan once leased. Duplexes spread vacancy risk across two tenants.
Spec homes sell to service members, many using VA loans, which gives builders a sale exit in Harker Heights and Nolanville. When sales slow, leasing is the backup.
Military moves peak in summer, so finishing a rental in spring gives it the best chance of leasing quickly.
Send the address, plans, budget and timeline through the form below or call (877) 298-1001. LendingStreet reviews Killeen builds directly and comes back with a term sheet that shows the loan amount, LTC and draw structure.
Yes. Single-family and duplex rentals for military households are the most common projects here.
New supply has been heavy, so rents in newer subdivisions compete. Check current rent comps carefully.
Possibly, when an experienced general contractor is on the project and plans and permits are in place.
Yes. We review projects across the Killeen-Temple metro.
They are often the largest expense after the mortgage, with no homestead exemption for investors.
On loan-to-cost. We add up land, construction and soft costs and lend a share of that total, set for the specific project.
No. Funds are released through a draw schedule after inspections confirm each stage of work.
Our Texas construction loans page covers the state.
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