Killeen's short-term rental market runs on Army orders more than on vacations. Soldiers arriving at Fort Hood before their household goods, families visiting for homecomings and ceremonies, and contractors on multi-week assignments fill furnished rentals year-round.
In short: LendingStreet finances short-term and furnished rentals in Killeen, Harker Heights, Copperas Cove, Belton and the rest of Bell and Coryell counties with DSCR loans that, on some programs, qualify on projected short-term revenue instead of a long-term lease. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, the minimum credit score is 620 and LLC borrowers are standard. Texas does not ban STRs statewide, but each city sets its own registration and hotel tax rules, and HOAs in newer subdivisions can restrict short stays.
Texas has no statewide short-term rental ban. Instead, cities decide whether to require registration, permits or local hotel occupancy tax filings, and the approaches differ around Fort Hood. Killeen, Harker Heights, Copperas Cove, Nolanville, Belton and Temple are separate cities, and unincorporated parts of Bell County follow county rules.
Rules in Central Texas cities have been changing as STRs grow, so call the city with the exact address before you buy and confirm whether a permit or registration is required. Then read the HOA covenants. Many newer subdivisions in south Killeen and Harker Heights set minimum lease terms that can rule out nightly use even where the city allows it.
Fort Hood is one of the largest Army installations in the country, and its rhythm drives local demand. Soldiers on permanent change of station orders often need 30 to 60 days of furnished housing while they find a long-term rental or wait for their household goods. Families come in for unit homecomings, change of command ceremonies and retirements. Defense contractors and trainers rotate through on multi-week assignments.
Outside the base, Baylor Scott and White's medical center in Temple draws patients and traveling clinicians, Texas A&M University-Central Texas adds academic visitors, and summer weekends bring families to Belton Lake and Stillhouse Hollow Lake.
| Location | Main demand | Typical stay |
|---|---|---|
| Killeen near the main gates | PCS moves, contractors, family visits | Weekend to 60 days |
| Harker Heights and Nolanville | Families, officers, contractors | One week to several months |
| Copperas Cove | PCS moves from the west side of the post | 30 days or more |
| Belton Lake and Stillhouse Hollow Lake | Summer lake weekends | Weekends and holiday weeks |
| Temple and Belton | Hospital stays, events at the Bell County Expo Center | Several days to weeks |
Investors who want classic vacation demand look at homes near Belton Lake and Stillhouse Hollow Lake, both Army Corps of Engineers reservoirs with parks, boat ramps and marinas, and at Salado, a small historic village on I-35 known for its creek, shops and events. Further out, the Hill Country towns to the west and the Highland Lakes chain draw weekend traffic from Austin and Waco.
Each of these places has its own rules, and lakefront homes can carry flood zone and septic questions. Our Texas STR page covers statewide considerations.
In Texas, stays of fewer than 30 consecutive days are generally subject to the state hotel occupancy tax, and many cities add a local hotel occupancy tax. Owners or platforms must collect and remit them. Airbnb and VRBO collect state tax in many cases, but local tax collection varies by city, and direct bookings are always your job.
Stays of 30 days or longer are generally treated differently for hotel tax purposes. Since much of Killeen's demand is 30-day-plus PCS housing, many operators run a mix. Confirm current rules with the Texas Comptroller and the city.
This example is illustrative and not a quote. An investor buys a four-bedroom home in Harker Heights for $295,000 in a subdivision without leasing restrictions. A projection that blends nightly bookings and 30-day PCS stays shows average gross revenue of $3,200 a month. With no homestead exemption, taxes are budgeted at $565 a month, and insurance with hail coverage at $180.
At 75% LTV the loan is $221,250 and estimated principal and interest on a 30-year loan is about $1,472. The total payment is about $2,217 and DSCR on projected revenue is about 1.44x. If revenue comes in 25% lower, at $2,400, the ratio is about 1.08x, still above the 1.0x standard minimum.
| Item | Projected revenue | Revenue cut 25% |
|---|---|---|
| Loan amount (75% LTV) | $221,250 | $221,250 |
| Estimated principal and interest | $1,472 | $1,472 |
| Property taxes | $565 | $565 |
| Insurance | $180 | $180 |
| Total monthly payment | $2,217 | $2,217 |
| Monthly revenue used | $3,200 | $2,400 |
| DSCR | About 1.44x | About 1.08x |
Texas has no state income tax, and local governments lean on property taxes instead. A Killeen-area home can be taxed by Bell County, the city, the school district and other local units, and the combined rate is high compared with many states. Homestead exemptions do not apply to investment property, so the bill after you buy is often higher than the seller's.
Look up the property on the Bell Central Appraisal District or Coryell Central Appraisal District site, and budget on the full combined rate applied to your purchase price.
Killeen demand moves with the Army calendar more than with the seasons. Summer is peak PCS season, when families move between duty stations and schools. Unit deployments and returns create spikes in family visits. Lake weekends add summer demand, and winter is usually the quietest stretch.
Because PCS stays are often 30 to 60 days, occupancy can stay high even when nightly rates are moderate. Ask for a projection that reflects that mix, and keep reserves for months when a large unit is deployed and local demand softens.
On some programs, an STR loan is sized on projected short-term revenue, often a third-party projection, compared with the full payment of principal, interest, taxes, insurance and any HOA dues. Programs differ in how they treat projections and whether they use the lower of projected revenue and an appraiser's estimate. If your projection is low, our guide to low revenue projections explains the options, and existing operators can refinance on booking history.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, city permit status, HOA rules and any projection or booking history. The team will run the ratio and come back with options. Call (877) 298-1001 or use the form below. If you would rather rent long-term to military families, see our Killeen DSCR page.
Texas has no statewide ban, so it depends on the city and any HOA covenants. Confirm permit or registration requirements with the city for the exact address.
Yes. Furnished stays of 30 to 60 days for incoming soldiers and families are a large part of the local market and can be underwritten on projected revenue on some programs.
Stays under 30 consecutive days are generally subject to Texas state hotel tax and often a local hotel tax. Longer stays are generally treated differently.
Investors do not get the homestead exemption, so taxes reset to the full combined rate on the appraised value.
Many newer subdivisions do. Read the covenants for minimum lease terms before you make an offer.
Lake homes can work if local rules allow nightly rentals. Check flood zones, septic and access before you buy.
On some programs, yes, using projected short-term revenue compared with the full payment.
Our investor loans are business-purpose loans on non-owner-occupied property, so the home must be run as a rental.
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