Invest In Apartment Buildings In Killeen, TX

Fort Hood And Killeen's Renter Base

Half of Killeen rents. The city has 30,211 renter households, 50.5% of the total (U.S. Census ACS 2020–2024), well above the Texas share of 37.4%. Median gross rent is $1,208 a month, up 30.9% from $923 in the 2015–2019 survey and still below the state median of $1,403. Population grew 8.6% to 158,159 and the number of employed residents rose 7.6%, but renter households barely moved, up 0.7%. Median household income rose 22.9% to $60,977, slower than rent, and 53.3% of renters spend 30% or more of income on housing.

Fort Hood is the reason most of those renters are here. The post, which was redesignated Fort Hood on June 10, 2025, after a period as Fort Cavazos, is home to III Armored Corps. The Texas Comptroller put its 2025 economic impact at about $37.9 billion, with 53,767 direct jobs and 159,692 total jobs, second only to Joint Base San Antonio among Texas installations. HUD's April 2024 market analysis estimated about 34,375 active-duty members, with roughly 34,450 family members living off base. Killeen's 2024 financial report lists III Corps and Fort Hood at 32,000 workers, followed by defense contractors at 7,447, Killeen ISD at 6,800 and the post's civilian personnel office at 6,200. Central Texas College, the City of Killeen, AdventHealth and Texas A&M University–Central Texas round out the list.

For owners, that means a large, steady pool of young renters with reliable federal paychecks, and turnover tied to Army rotations. A building's distance to the post's gates matters more here than in most cities.

Apartment Supply And Rents In Killeen

Killeen rents are slipping. Apartment List put the city's median rent at $1,084 in October 2026, down 1.9% from a year earlier, close to the Texas average decline of 2.1%. That follows a soft stretch across the region. HUD's April 2024 report found Killeen-Temple apartment vacancy at 9.7% in early 2024, up from 8.0% a year before and 4.8% in early 2022, with average asking rent flat at $1,055. HUD called the market slightly soft and softening, with about 1,075 units under construction, most of them in Temple.

Killeen has added larger buildings at a steady pace. It has 9,818 homes in buildings with five or more units, 14.9% of its housing, up 7.7% in five years, and the median home was built in 1996. NRP Group broke ground in 2022 on Robinson42, a 368-unit mixed-income community near W.S. Young Drive and Veterans Memorial Boulevard in north Killeen, built with the Killeen Public Facility Corporation and expected to finish in 2024. Half its units were set aside for households at or below 80% of area median income. In west Killeen, a state filing for Altair at Clear Creek, 182 apartments in 19 buildings at 5100 Janelle Drive, listed an expected completion of March 2027.

The Census rental vacancy rate is 6.8%. That rate covers all rentals, including single-family homes, and averages 2020 to 2024. HUD's fiscal 2027 two-bedroom fair market rent for Killeen-Temple is $1,138, below the city's Census median, so voucher rents won't lift a rent roll here.

For apartment syndications in Killeen, the current read is soft rents, competition from single-family rentals and new mixed-income product, and a tenant base that rises and falls with troop levels at Fort Hood. Buyers should stress-test occupancy and pay close attention to any news about unit moves or deployments.

Killeen Areas We Watch

Rental demand in Killeen follows the roads to Fort Hood's gates and the city's two colleges.

Killeen By The Numbers

Among the 133 Texas cities we track, Killeen ranks 98th for median gross rent, 15th for renter share and 71st for five-year rent growth. Its rents fall in the middle of the pack. Put in counts rather than percentages, that is roughly 12,473 more residents, 210 more renter households and 702 more homes in buildings with 5 or more units than five years earlier. New homes in 5+ unit buildings outpaced the growth in renter households, so newer buildings are competing for tenants and older ones may need to offer more to keep them.

Killeen And Nearby Markets Side By Side

Killeen's median gross rent of $1,208 is below the Texas median of $1,403, and its renter share is 50.5% compared with 37.4% statewide.

Killeen Rent Affordability In Dollars

The median rent in Killeen works out to $14,496 a year, about 23.8% of the median household income of $60,977. Under the common 30% guideline, a household needs about $48,300 a year to cover that rent comfortably. That's a heavier load than the Texas average of 21.5%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $285 a month ($3,420 a year), while median household income rose $11,362 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal. HUD's FY2027 Fair Market Rent for a two-bedroom unit, $1,138, is 5.8% below the median gross rent for all unit sizes. That gap matters for buildings that accept Housing Choice Vouchers, since local housing authorities base voucher payment standards on it.

Quick Facts: Killeen Rental Market

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Killeen, TX has 158,159 residents, up 8.6% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Killeen, TX is $60,977, up 22.9% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Killeen, TX is $1,208 a month, up 30.9% over five years (U.S. Census ACS 2020–2024).
• 50.5% of households in Killeen, TX rent, about 30,211 renter households (U.S. Census ACS 2020–2024).
• 14.9% of homes in Killeen, TX are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Killeen, TX is 6.8%, and 53.3% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Killeen, TX was built in 1996 (U.S. Census ACS 2020–2024).

What We Look For In A Killeen Apartment Building

We look at buildings with 5 or more units in Killeen, from small walk-ups to larger garden-style communities, in stabilized or value-add condition. We compare in-place rents with nearby buildings, inspect roofs, plumbing and HVAC, and ask whether better management or targeted renovation can close the gap with the market.

Texas has no state income tax on wages, and property taxes are often one of the largest expenses for apartment owners. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Texas has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Texas reflect hurricane and flood exposure and hail and wind damage, so we get a quote before we make an offer.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Due Diligence For Apartment Syndications In Killeen

Before you invest in an apartment syndication in Killeen, with us or anyone else, the local data points to a few questions worth asking.

• What vacancy does the plan assume? Rental vacancy in Killeen is 6.8%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 30.9% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• How big is the repair reserve? The median home in Killeen was built in 1996, and even newer buildings need money set aside for roofs, HVAC and appliances.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Killeen Apartment Syndication Works

Two groups make an apartment syndication work. The sponsor, or general partner, handles the deal: finding the building, financing it and running the business plan. The limited partners are passive investors who contribute capital and share in the property's results under the offering's terms.

Expect your money to be tied up for years, with no easy way to sell your share early, and remember that any investment can lose money. Most deals are open only to accredited investors under Rule 506(b) or 506(c). See investing with Skyline Capital for how we work with limited partners.

Getting Started

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