Killeen's rental market moves with Fort Hood. Soldiers arriving and leaving on permanent change of station orders keep demand steady, while turnover is a fact of life.
In short: LendingStreet offers DSCR loans for 5 to 8 unit rental buildings in Killeen, Harker Heights, Copperas Cove and the rest of Bell and Coryell counties, qualified on rent rather than income. Loans start at $150,000, the standard minimum DSCR is 1.0x and LLC borrowers are standard. In Killeen, the tax line and hail insurance matter as much as the rent.
Killeen is known for fourplexes: entire streets were built with them in the 1980s and 2000s. Buildings of five to eight units are less common, mostly small two-story buildings and garden complexes along Rancier Avenue, near the old downtown and around the main gate.
Harker Heights and Nolanville have newer, higher-rent stock, while Copperas Cove to the west offers lower prices near the west gate. Temple and Belton, farther east, have small buildings that rent to hospital and university staff.
| Area | Typical stock | Tenant base |
|---|---|---|
| Central Killeen | Older small buildings, fourplex clusters | Junior enlisted, civilians |
| Harker Heights, Nolanville | Newer small buildings | Senior enlisted, officers |
| Copperas Cove | Mixed stock | West gate commuters |
| Temple and Belton | Small buildings | Hospital and university staff |
Fort Hood, which carried the name Fort Cavazos from 2023 to 2025, is one of the largest Army installations in the country. Soldiers receive a housing allowance that sets an effective rent ceiling for many units, and rents in the area track it closely.
PCS moves mean frequent turnover, often in summer. Military clauses in leases let soldiers break leases on orders. Budget for vacancy and turnover costs even though DSCR uses gross rent.
Unit-level rents in the appraiser's rent schedule are compared with what similar units actually lease for. In Killeen there are plenty of fourplex comparables, which helps the appraiser support rents, though five to eight unit sales comparables are thinner and can make value harder to pin down.
This example is illustrative and not a quote. An investor buys a six-unit two-story building near the main gate in Killeen for $650,000. Rents average $1,000 per unit across all 6 units, for $6,000 of gross monthly rent. The budget carries $1,250 a month for taxes and $330 for insurance.
With a 75% LTV loan of $487,500, estimated principal and interest runs about $3,409 and the total payment about $4,989, which puts DSCR near 1.20x. Cutting leverage to 70% LTV, a $455,000 loan, lowers the payment to about $4,761 and lifts DSCR to about 1.26x, at the cost of $32,500 more down.
Taxes are the biggest expense after principal and interest, which is common in Texas. Turnover tied to PCS cycles is the operating risk to plan for.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $650,000 | $650,000 |
| Loan amount | $487,500 | $455,000 |
| Down payment | $162,500 | $195,000 |
| Estimated principal and interest | $3,409 | $3,181 |
| Property taxes (monthly) | $1,250 | $1,250 |
| Insurance (monthly) | $330 | $330 |
| Total monthly payment | $4,989 | $4,761 |
| Gross monthly rent | $6,000 | $6,000 |
| DSCR | About 1.20x | About 1.26x |
Bell County properties are taxed by the county, the city, the school district and in some cases special districts. Investors do not receive homestead exemptions, and the Bell County Appraisal District reappraises regularly. Combined rates are high, often around 2% or more of value. Budget taxes on your purchase price.
Texas has no transfer tax and no state income tax, which helps closing costs and investor returns.
Central Texas sees frequent hail and severe spring storms. Insurance premiums and wind and hail deductibles have risen, and older roofs may be excluded or priced higher. Ask for roof age and any recent replacement records.
Some low areas near Nolan Creek and other drainage channels are in mapped flood zones. Check the FEMA map and add any required flood premium to the payment before you set the loan amount.
Killeen has had periods of oversupply as builders added fourplexes and apartments. Check occupancy in nearby buildings and how long similar units sit vacant. A building with long-term occupancy history is more appealing to underwriters than one with a strong rent roll but frequent vacancies.
Unit mix matters too. Two- and three-bedroom units suit military families and usually lease faster than studios. Off-street parking and fenced yards are selling features in a market where many tenants have trucks and pets.
A building with five to eight units is still residential financing, so it qualifies on rent the way a single-family rental does. In Killeen, the appraiser's rent schedule and any signed leases set the income, and the ratio compares that income with principal, interest, taxes, insurance and any association dues. No W-2s or tax returns are needed.
Loans start at $150,000 with no stated maximum. Purchases can reach 80% LTV and cash-out refinances 75% LTV, but on 5-8 units the top leverage is often lower and varies by program. The standard minimum DSCR is 1.0x, the minimum credit score is 620, LLC borrowers are standard and 30-year terms are available. If the ratio lands just under 1.0x, a sub-1.0 DSCR program may fit.
Get a quote with the form below or by calling (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property, and every 5-8 unit file is reviewed on the building's own cash flow. Compare with our Texas 5-8 unit DSCR page for state-level rules, and note that nine units and up is a commercial loan.
Largely. Many tenants receive a housing allowance, and rents tend to track it.
Usually property taxes, which are high in Texas with no homestead exemption for investors.
Fourplexes are very common; buildings with five to eight units are less so.
Not directly, but frequent turnover affects cash flow. Plan for vacancy.
Yes. The program covers Bell and Coryell counties. Harker Heights usually has higher rents and prices, while Copperas Cove has lower prices near the west gate, and both rely on the same military demand.
The appraiser's market rent can support vacant units on some programs, but a building with weak occupancy usually gets more scrutiny. A bridge loan can carry a lease-up before a DSCR refinance.
No. The loan qualifies on the building's rent, not your personal income, so W-2s and tax returns are not required. A 620 minimum credit score applies.
Yes, up to 75% LTV on a cash-out refinance, often lower on 5-8 units. Seasoning requirements vary by program, and the rent must still cover the new payment.
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