Is Killeen, Texas Good for Airbnb Investment?

To start an Airbnb in Killeen, Texas, begin by researching local regulations as Killeen requires short-term rental operators to obtain a business license from the City Secretary's office and comply with zoning ordinances that typically allow STRs in residential areas with proper permits. Contact the Killeen Planning and Development Services Department at 254-501-7600 to verify zoning compliance and obtain necessary permits, which may include a Certificate of Occupancy and fire safety inspection. Find a suitable property in desirable areas like near Fort Hood or downtown Killeen, ensuring it meets the city's safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the property with quality furniture, linens, kitchen essentials, and amenities that appeal to military personnel and families visiting Fort Hood, as this represents a significant portion of Killeen's visitor market. Create your Airbnb listing with professional photos, competitive pricing (typically $60-120/night in Killeen as of 2023), and detailed descriptions highlighting proximity to Fort Hood and local attractions. For ongoing management, establish cleaning protocols between guests, maintain responsive communication, and consider hiring local property management companies like RedAwning or Vacasa if you live out of area, while ensuring compliance with Texas state tax requirements including collecting and remitting hotel occupancy taxes to both the state and Bell County.

To identify profitable short-term rental properties in Killeen, Texas, focus on locations within 10-15 minutes of Fort Hood military base, as this drives consistent demand from military personnel and their families seeking temporary housing during relocations and training. Target properties near Central Texas College, downtown Killeen's revitalized areas, and neighborhoods like Harker Heights or Nolanville that offer suburban appeal with easy base access. Seek 2-4 bedroom homes or townhomes with dedicated parking, full kitchens, washer/dryer, high-speed internet, and military-friendly amenities like flexible check-in/out times. Analyze pricing using AirDNA and Mashvisor to identify properties generating $2,500-4,500 monthly revenue, with purchase prices between $150,000-300,000 to maintain healthy profit margins after mortgage, utilities, cleaning, and management costs averaging 60-70% of gross revenue. Research competition by monitoring 50+ active listings within 5-mile radius, noting average daily rates of $80-150 and occupancy rates typically 65-80% due to steady military demand. Utilize Killeen MLS data, BiggerPockets for local investor insights, STR Helper for regulation compliance, and connect with Killeen Area Association of Realtors for market-specific data, while ensuring compliance with city STR licensing requirements implemented in 2022.

To obtain an Airbnb/STR permit in Killeen, Texas, you must first contact the City of Killeen Planning and Development Services Department at 254-501-7600 or visit their office at 101 N 8th Street to inquire about short-term rental regulations, as the city has been developing STR ordinances since 2019-2020. You'll need to submit an application form along with required documents including a copy of your driver's license, property deed or lease agreement, site plan showing parking areas, floor plan of the rental unit, certificate of occupancy, and proof of liability insurance with minimum $1 million coverage. The application fee is typically around $150-250 with an annual renewal fee of approximately $100-150. You must also obtain a business license from the City Secretary's office for an additional $50-75 fee and register with the Texas Comptroller for state tax purposes. The property must comply with zoning requirements (typically allowed in residential zones with restrictions), provide adequate off-street parking (usually 1-2 spaces per unit), maintain occupancy limits based on square footage, and meet all fire safety and building code requirements. The review process generally takes 30-45 days, during which city staff will conduct inspections and review compliance with noise ordinances, trash collection requirements, and neighborhood compatibility standards. Once approved, you'll receive your permit and must display the permit number in all advertising, maintain a 24-hour contact person, and submit quarterly occupancy reports to the city.

Short-term rentals (STRs) are generally legal in Killeen, Texas, as the city has not implemented a comprehensive ban on such accommodations. However, STRs must comply with existing zoning regulations and city ordinances, which typically require properties to be located in areas zoned for residential or mixed-use purposes. The city requires STR operators to obtain proper business licenses and comply with health and safety standards, fire codes, and occupancy limits. Properties in certain residential neighborhoods may face restrictions based on homeowners association rules or specific zoning classifications that limit commercial activities. Recent years have seen increased scrutiny from the city council regarding noise complaints and neighborhood impacts, leading to discussions about potential registration requirements and operational standards. STR operators must also comply with state tax collection requirements and ensure their properties meet all building and safety codes, while some areas near Fort Hood may have additional considerations due to military housing policies and security concerns.

The best areas for Airbnb investment in Killeen, Texas are the neighborhoods near Fort Hood's main gates, particularly areas along Rancier Avenue and Stan Schlueter Loop, which attract military families and personnel needing temporary housing during PCS moves and training rotations. The Historic Downtown Killeen district offers potential for business travelers and visitors attending events at the Killeen Civic and Conference Center, while properties near Central Texas College campus cater to visiting faculty, prospective students, and families during graduation ceremonies. The Harker Heights border area, especially near Stillhouse Hollow Lake, appeals to recreational visitors and families seeking lake activities and outdoor recreation. Areas close to the Killeen-Fort Hood Regional Airport along Highway 190 are attractive for business travelers and military contractors, while neighborhoods near the Killeen Mall and entertainment districts serve visitors attending local events, sports tournaments, and families visiting military personnel stationed at Fort Hood, which generates consistent year-round demand due to the base's status as one of the largest military installations in the world.

In Killeen, Texas, Airbnb hosts are subject to both state and local occupancy taxes. The Texas state hotel occupancy tax is 6% of the room rate, while the City of Killeen imposes an additional 7% local hotel occupancy tax, bringing the total occupancy tax to 13%. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automatic tax collection system, which began in Texas around 2017. Airbnb remits these taxes directly to the Texas Comptroller's office monthly for state taxes and to the City of Killeen for local taxes. Hosts are generally not required to separately register or remit these taxes when using Airbnb's collection service, though they should verify their tax obligations with local authorities. Exemptions typically include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization bookings, though documentation may be required to claim exemptions.

The total cost to start an Airbnb in Killeen, Texas is approximately $195,000-$235,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registrations cost $500-$1,500. Insurance premiums for short-term rental coverage run $2,000-$3,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable total $1,000-$1,500. First six months operating costs including utilities ($900), cleaning supplies ($300), maintenance reserves ($1,200), marketing ($600), and platform fees on estimated bookings ($2,000) total approximately $5,000. Additional considerations include property management software subscriptions ($300), welcome amenities ($200), and emergency repair funds ($2,000-$5,000) bringing the comprehensive startup investment to the upper end of the range.

Airbnb properties in Killeen, Texas show moderate profitability potential with average daily rates ranging from $75-120 depending on proximity to Fort Hood military base, with properties near the base commanding premium rates due to consistent military personnel demand. A typical 3-bedroom home generating $2,800-4,200 monthly revenue faces expenses including mortgage ($1,200-1,800), utilities ($200-300), cleaning fees ($150-250), property management (10-15% of revenue), insurance ($100-150), and maintenance ($200-400), resulting in net profit margins of 15-25% for well-managed properties. Success factors include strategic location within 10 miles of Fort Hood, military-friendly amenities like flexible check-in/out times, reliable WiFi for remote work, and competitive pricing during PCS (Permanent Change of Station) seasons when occupancy peaks at 85-95% versus the annual average of 65-75%. Properties managed by companies like RedAwning and Vacasa in the Killeen market typically achieve 20-30% higher occupancy rates than self-managed units, with the most successful operators focusing on the $100-150 nightly rate segment targeting military families and contractors, where demand remains consistent year-round despite Killeen's limited tourism appeal compared to Austin markets 70 miles south.

Airbnb investments in Killeen, Texas typically generate annual ROI of 12-18% due to the city's proximity to Fort Hood military base creating consistent demand from military personnel and their families. Cash-on-cash returns generally range from 8-14% annually, with properties near the base commanding higher rates of $85-120 per night compared to $60-85 for properties further away. Most investors achieve profitability within 18-24 months, with initial investment recovery occurring faster for properties within 10 miles of Fort Hood due to occupancy rates of 70-85% versus 55-70% for more distant locations. The military housing allowance (BAH) rates in the area support sustainable pricing, and properties typically appreciate 3-5% annually while generating monthly cash flows of $400-800 after expenses, making the total return on investment particularly attractive for investors targeting the steady military market segment.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Killeen, Texas. Local real estate agents serving the Killeen market include Keller Williams Realty, Coldwell Banker United Realtors, and RE/MAX First with agents experienced in investment properties near Fort Hood. National services like Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools for Killeen's vacation rental market. BiggerPockets connects investors with local professionals, while companies like Awning and RedAwning offer property management and investment guidance. Local property management companies such as Central Texas Property Management and Killeen Property Solutions help investors optimize their Airbnb operations. Real estate investment firms like HomeVestors and We Buy Ugly Houses also operate in the area, though they focus more on fix-and-flip opportunities that could be converted to short-term rentals. The proximity to Fort Hood military base makes Killeen an attractive market for corporate housing and extended-stay rentals, with companies like BNB Breeze and Vacasa providing full-service management for investors looking to capitalize on this demand.