Airbnb Investing by City
Texas
Killeen

Is Killeen, Texas Good for Airbnb Investment?

Get significant tax savings and earn cash flow by investing in a short-term rental with data-backed selection. No guessing!

Find Your Airbnb Investment
Killeen, Texas market research

Killeen, Texas Airbnb Investment Overview

$800–$2,200Typical monthly host earnings
8–12%Typical annual ROI
55–65%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Killeen, Texas?

Potentially. Killeen, Texas combines visitor demand with long-term real estate upside.

  • Presents a promising opportunity, largely influenced by its unique market dynamics centered around Fort Hood.
  • Current market conditions show a steady demand for short-term rentals, driven by military personnel and their families, contractors, and visitors attending events related to the base.
  • Tourism trends are consistently supported by military operations and family visits, rather than traditional vacation tourism, which provides a stable, albeit specialized, renter base.
  • Property values in Killeen remain relatively affordable compared to larger Texas cities, offering a lower barrier to entry for investors.
  • This affordability, combined with the consistent demand from the military community, suggests a solid investment potential for Airbnb hosts seeking reliable occupancy rates and consistent rental income.
Earnings

How Much Does an Average Airbnb Earn in Killeen?

$800–$2,200 per month based on location, season, and property quality.

  • Based on available market data and rental analytics, Airbnb hosts in Killeen, Texas typically earn between $800 to $2,200 per month.
  • Seasonal variations show peak earnings during spring and fall months when Fort Hood military activities and local events drive higher demand.
  • The proximity to Fort Hood military base significantly impacts earnings potential, as properties within a 10-mile radius of the base command premium rates of $65-95 per night compared to $45-70 for properties further away.
  • Key factors affecting earnings include property size and amenities, with entire homes outperforming private rooms by approximately 40-60%.
  • Location within Killeen also matters substantially, with properties near major highways and shopping centers achieving higher booking rates and revenue per available night.
ROI Analysis

Airbnb Return on Investment in Killeen

Potentially strong, with a typical annual ROI of 8–12%.

  • Typically generate ROI between 8-12% annually, with payback periods averaging 7-10 years, driven primarily by the city's proximity to Fort Hood military base which creates consistent demand from military personnel and their families.
  • The average daily rate ranges from $75-120 depending on property size and amenities, with occupancy rates averaging 65-75% throughout the year.
  • Compared to traditional long-term rentals in Killeen which typically yield 6-8% ROI with rental rates of $1,200-1,800 monthly for similar properties.
  • The market benefits from relatively affordable property acquisition costs averaging $150,000-250,000 for investment-suitable homes.
Occupancy Rate

Average Airbnb Occupancy Rate in Killeen

Killeen, Texas averages 55–65% annual occupancy, with seasonal variation.

  • Airbnb occupancy rates in Killeen, Texas typically average around 55-65% annually, with peak seasons occurring during spring (March-May) and fall (September-November) when occupancy can reach 70-75% due to favorable weather and military training schedules at nearby Fort Hood.
  • Summer months see moderate occupancy of 60-65%, while winter experiences the lowest rates at 45-55%.
  • Killeen's occupancy rates generally underperform compared to Texas state averages of 65-70% and national averages of 63-68%.
  • The city's proximity to Fort Hood creates unique demand patterns tied to military deployments, training cycles, and family visits.
Best Neighborhoods

Best Neighborhoods for Airbnb in Killeen

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • The best Airbnb investment neighborhoods in Killeen include Downtown Killeen, which offers proximity to local restaurants, shopping.
  • The Fort Hood area neighborhoods are highly lucrative due to constant military personnel rotations, family visits, and temporary duty assignments.
  • West Killeen near Killeen Regional Medical Center attracts medical professionals, patients' families, and healthcare workers seeking temporary housing.
  • The Harker Heights border area combines Killeen's affordability with access to better schools and family amenities.
  • Neighborhoods near Central Texas College draw students, faculty, and academic visitors, providing steady demand during school terms with opportunities for higher nightly rates during events.
  • The Rancier Avenue corridor offers excellent accessibility to major highways, shopping centers, and dining.
  • Finally, areas near Stillhouse Hollow Lake provide recreational appeal for weekend getaways and fishing enthusiasts.
Regulations

Short-term Rental Regulations in Killeen

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Killeen, Texas currently allows short-term rentals in most residential zones but requires operators to obtain a business license and register with the city's planning department.
  • Properties must comply with standard occupancy limits of two persons per bedroom plus two additional guests, with a maximum of 10 occupants total.
  • Owner-occupancy is not required for short-term rentals, allowing investment properties to operate as vacation rentals.
  • The city prohibits short-term rentals in certain historic districts and requires a minimum 200-foot separation between rental properties in some neighborhoods.
  • Registration involves submitting an annual application with a fee of approximately $150-200, maintaining current liability insurance of at least $500,000, and passing initial and periodic safety inspections that cover smoke detectors, carbon monoxide alarms, and basic structural requirements.
  • Recent changes implemented in 2022-2023 include stricter noise ordinance enforcement with potential permit revocation after three verified complaints.
Fees and Taxes

Short-term Rental Fees and Taxes in Killeen

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Killeen, Texas are subject to several fees and taxes including the state hotel occupancy tax of 6%, Bell County hotel occupancy tax of 2%, and Killeen city hotel occupancy tax of 7%.
  • Property owners must obtain a short-term rental permit from the City of Killeen with an estimated annual fee of $150-200, plus an initial registration fee of approximately $75-100.
  • Additional requirements include a business license costing around $50-75 annually, and compliance with fire safety inspections which typically cost $100-150 per inspection.
  • Sales tax of 8.25% applies to cleaning fees and other taxable services, while property taxes remain at standard residential rates unless the property is classified as commercial use.
  • Some properties may require additional permits for parking or signage modifications, with fees ranging from $25-50 per permit.
Common questions

Killeen, Texas Airbnb investment FAQs

How to start an Airbnb in Killeen, Texas?

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.

Launch checklist

  • Contact the Killeen Planning and Development Services Department at 254 to 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 to 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.
What's the best way to identify good STR properties in Killeen, Texas?

To identify profitable short term rental properties in Killeen, Texas, focus on locations within 10 to 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.

What to prioritize

  • 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 to 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 to 4,500 monthly revenue, with purchase prices between $150,000 to 300,000 to maintain healthy profit margins after mortgage, utilities, cleaning.
  • Research competition by monitoring 50+ active listings within 5 mile radius, noting average daily rates of $80 to 150 and occupancy rates typically 65 to 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.
How to get an Airbnb permit in Killeen, Texas?

To obtain an Airbnb/STR permit in Killeen, Texas, you must first contact the City of Killeen Planning and Development Services Department at 254 to 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 to 2020.

Documents and approvals

  • 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.
  • The application fee is typically around $150 to 250 with an annual renewal fee of approximately $100 to 150.
  • You must also obtain a business license from the City Secretary's office for an additional $50 to 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 to 2 spaces per unit), maintain occupancy limits based on square footage.
  • The review process generally takes 30 to 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.
Is it legal to operate a short-term rental in Killeen, Texas?

Short term rentals (STRs) are generally legal in Killeen, Texas, as the city has not implemented a comprehensive ban on such accommodations.

Core operating requirements

  • 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.
What are the best places to invest in Airbnb in Killeen, Texas?

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.

Areas to research

  • 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.
Airbnb and lodging taxes in Killeen, Texas

In Killeen, Texas, Airbnb hosts are subject to both state and local occupancy taxes.

Taxes and filing responsibilities

  • 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.
Total cost to purchase, furnish and operate an Airbnb in Killeen, Texas

The total cost to start an Airbnb in Killeen, Texas is approximately $195,000 to $235,000.

Cost breakdown

  • Property purchase costs around $150,000 to $180,000 based on median home prices in the area.
  • Furnishing a 2 to 3 bedroom property requires $15,000 to $25,000 for quality furniture, appliances, linens, and decor.
  • Initial setup costs including professional photography, listing creation, and basic renovations total $3,000 to $5,000.
  • Permits and fees including business license, short term rental permit, and tax registrations cost $500 to $1,500.
  • Insurance premiums for short term rental coverage run $2,000 to $3,000 annually.
  • Utility deposits and connections for electricity, water, gas, internet, and cable total $1,000 to $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 to $5,000) bringing the comprehensive startup investment to the upper end of the range.
Are Airbnb properties in Killeen, Texas profitable?

Airbnb properties in Killeen, Texas show moderate profitability potential with average daily rates ranging from $75 to 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 to 4,200 monthly revenue faces expenses including mortgage ($1,200 to 1,800), utilities ($200 to 300), cleaning fees ($150 to 250), property management (10 to 15% of revenue), insurance ($100 to 150), and maintenance ($200 to 400).

Profitability indicators

  • 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.
  • Properties managed by companies like RedAwning and Vacasa in the Killeen market typically achieve 20 to 30% higher occupancy rates than self managed units, with the most successful operators focusing on the $100 to 150 nightly rate segment targeting military families and contractors.
What is the expected return on investment for an Airbnb in Killeen, Texas?

Airbnb investments in Killeen, Texas typically generate annual ROI of 12 to 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 to 14% annually, with properties near the base commanding higher rates of $85 to 120 per night compared to $60 to 85 for properties further away.

Return planning figures

  • Most investors achieve profitability within 18 to 24 months, with initial investment recovery occurring faster for properties within 10 miles of Fort Hood due to occupancy rates of 70 to 85% versus 55 to 70% for more distant locations.
  • The military housing allowance (BAH) rates in the area support sustainable pricing, and properties typically appreciate 3 to 5% annually while generating monthly cash flows of $400 to 800 after expenses.
What company can help me find and buy a profitable Airbnb in Killeen, Texas?

STRSearch is a leading national platform that specializes in identifying profitable short term rental properties for investors in Killeen, Texas.

Companies and resources

  • 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.
STR Search
Courses
Airbnb Data BasicsSTR Tax Loophole
Property MatchResults
About UsWhy Short-Term RentalsBlogs
Media
© Copyright - STR Search - All Rights Reserved
TermsPrivacy