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Program 02
Rental / DSCR in Killeen
DSCR loans that qualify Killeen rentals on the property.
Hold your rentals with financing that qualifies on the property itself. DSCR as low as 0.75, rates from 5.5% interest-only, and 30-year fixed options for single properties or whole portfolios. Killeen rents sit almost exactly on the Fort Hood housing allowance, so start the underwrite there. Business-purpose only, and rates and structure are set in underwriting.
0.75
min DSCR
5.5%
rates from
30-yr
fixed avail.
80%
max LTV
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
No tax returns or personal income docs in most cases. We qualify on the property's cash flow, so you can scale your portfolio without the paperwork drag of conventional lending.
Who it's for
Buy-and-hold investors
Single rentals and portfolios
Short-term rentals considered
Rate/term and cash-out refi
Typical terms
Loan amount$100K to $3M
Max leverageUp to 80% LTV
DSCRFrom 0.75
CreditFrom 640
Term30-yr fixed / 5-7-10 ARM
RateFrom 5.50% IO*
PrepayFlexible structures
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
Rental / DSCR in Killeen, answered.
Why does the Fort Hood housing allowance matter for my DSCR number?
Because it sets both the floor and the ceiling on what a Killeen-area rental collects. The 2026 basic allowance for housing at the Fort Hood military housing area (MHA TX286) runs from about $1,374 without dependents up to $1,695 with dependents for junior-enlisted grades (E-1 to E-5), rising to $2,070 for an E-7 with dependents. Metro rents track that band closely: the Zillow Observed Rent Index put single-family rent at $1,649 for the metro in June 2026, while city-level rent was $1,254 in Killeen proper and $1,612 in Harker Heights. A tenant's housing budget is federally funded, published, and resets every year, which supports collection but also caps what the market bears. Price a 3-bedroom above the E-6 BAH tier ($1,920) and you are underwriting to a much smaller pool of tenants. Run your own numbers with the DSCR calculator before you lock a rent assumption.
Sources: garrisonledger.com, files.zillowstatic.com
How should I model vacancy on a Killeen rental with a military tenant?
As turnover risk built into the lease, not as a surprise. Under the federal Servicemembers Civil Relief Act (50 U.S.C. section 3955), a tenant with PCS orders or deployment orders of 90 days or more can terminate a residential lease with written notice and a copy of orders; on a month-to-month lease the termination is effective 30 days after the next rent due date, and no early-termination fee applies. Every military tenant in this metro carries that break clause, and it is the structural reason Fort Hood's rental market turns over as fast as it does, feeding a steady stream of make-ready and light-rehab work along with it. We do not treat a Killeen DSCR file like a stable-tenant suburban file; budget the turn.
Sources: law.cornell.edu
What does Bell County property tax actually cost a non-homestead investor?
Roughly 2.0% of assessed value a year in Killeen proper, with no homestead relief because you are not living in it. The Tax Appraisal District of Bell County's 2025 table works out to about 2.00 per $100 of value inside Killeen: county 0.3128, road district 0.0199, city 0.7014, Killeen ISD 0.8778, and Central Texas College 0.09. Temple runs heavier at roughly 2.17 (2.37 with Temple College) because Temple ISD (1.1372) and Temple College (0.2017) both run well above their Killeen-side counterparts. Both cities raised rates for fiscal 2026: Killeen adopted 70.14 cents per $100, an 8.2% increase, and Temple adopted 69.99 cents, up 11.72%. Check for a MUD overlay before you underwrite carry: Bell County MUDs run 0.783 to 1.000 per $100 on top of the base stack, which can push a new-build parcel's total near or above 3%. Talk to your CPA about how this lands on your own return.
Sources: bellcad.org, kdhnews.com, templetx.gov
Can I underwrite short-term rental income on a Killeen property?
In Killeen city limits, yes, with a permit. Killeen legalized and now licenses short-term rentals under an ordinance effective October 2023: every STR needs an annual permit through the city's registration portal, priced at $200 for the initial permit and inspection, $100 for annual renewal, and $75 for a re-inspection, with no density cap. Registration opened in May 2024. Before you build a nightly-income model, confirm current insurance and hotel occupancy tax obligations directly with the city; secondary sources describe a $500,000 minimum liability requirement and self-remittance of local hotel occupancy tax, but that detail has not been confirmed against the ordinance text. Temple's short-term rental posture was not sourced this pass, so do not assume Killeen's rules carry over there.
Sources: killeentexas.gov, kdhnews.com
Which Killeen-area submarket pencils best for a buy-and-hold DSCR deal?
On raw gross yield, Killeen and Temple lead, but the tax and tenant story differ enough to matter. As of June 2026, Killeen's $1,254 city-level rent against a $220,742 mid-tier home value works out to about a 6.8% gross yield; Temple's $1,428 rent against $249,750 in value runs about 6.9%; Harker Heights runs closer to 6.4% on a $1,612 rent and $300,200 value. Killeen carries the lower property tax stack of the two (roughly 2.0% versus Temple's 2.17%) because Killeen ISD's rate sits well under Temple ISD's, but Temple's economy leans on Baylor Scott & White Health and its logistics employers rather than Fort Hood directly, which is a different tenant base than the BAH-anchored demand around the post. Neither figure is a cap rate; it is rent over value with no expenses netted out, so run your own operating numbers before you commit.
Sources: files.zillowstatic.com
What is 20% down on a $220,000 Killeen DSCR purchase?
Plan on 20% of the purchase price, plus closing costs and reserves. Leverage runs up to 80% LTV, so on a $220,000 Killeen purchase, close to the city's $220,742 mid-tier value, that is up to $176,000 from us and $44,000 from you (220,000 x 80% = 176,000). The rest of the file is the property: DSCR from 0.75, and rent that in this metro sits almost on top of the Fort Hood housing allowance band. Subject to underwriting.
Sources: files.zillowstatic.com
Killeen doors trade near $220,742. Can a rental that size fall under your $100,000 floor?
Our DSCR loans run from $100,000 to $3,000,000. At Killeen's $220,742 mid-tier value, a purchase at 80% LTV pencils to about $176,000 of loan (220,742 x 80% = 176,594), which clears the $100,000 minimum with room to spare. A lower-priced door in Killeen proper can land under the floor once leverage comes off the price, and that is worth checking before you go under contract rather than after. Bring us the address and the rent and we will size it. Subject to underwriting.
Sources: files.zillowstatic.com
Does the SCRA lease break change how I should set prepay on a Killeen hold?
Prepay is a structure we set with you, not a fixed penalty. DSCR files carry flexible prepayment structures, and the right one depends on how long you actually intend to hold. That is worth thinking through in this metro specifically: every military tenant here can end a lease on PCS orders under the federal Servicemembers Civil Relief Act (50 U.S.C. section 3955), so a Killeen hold can turn over on a timeline the broader market does not set. Tell us up front whether the plan is a long hold or a two-year season and we will structure the prepay to match. Subject to underwriting.
Sources: law.cornell.edu
More Rental / DSCR questions, answered on the program page
Resources
Guides for Rental / DSCR
Rental / DSCR · 5 min read
What Is a DSCR Loan? How Investors Qualify on Rental Income
Read the guide Strategy · 6 min read
Financing the BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat
Read the guide Rental / DSCR · 5 min read
DSCR vs Conventional Loan: Which Is Better for Investment Property?
Read the guide Rates & Costs · 5 min read
Hard Money Loan Rates and Costs, Explained
Read the guide More in Killeen
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About the local figures on this page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-12.
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