Location: Killeen-Temple, TX | Metro: Killeen-Temple, TX HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $124,482 | 0.89% | C |
| 3BR | $1,540 | $194,609 | 0.79% | D |
| 4BR | $1,870 | $263,613 | 0.71% | D |
U.S. Census Bureau data (2024)
In Temple, TX (ZIP 76501), the real estate market presents a nuanced scenario for landlords and small-portfolio investors. The median home value stands at $192,569, indicating a relatively affordable market that could attract first-time buyers and investors looking for entry-level opportunities. However, the fact that only 0.2% of listings have reduced their prices suggests a resilient housing market where sellers maintain strong pricing power. This stability in pricing power, coupled with the lack of data on median days on market (DOM), points to a market where homes are either selling quickly or holding steady at asking prices without significant discounts.
The disparity between the Fair Market Rent (FMR) of $930 and the actual market rent (ZORI) of $1,420 highlights a potential opportunity for rental income. Landlords can leverage this gap to ensure competitive yet profitable rental rates. The higher ZORI suggests that there is demand for rental properties in Temple, which could support maintaining current rents or even modest increases, especially if supply remains constrained.
For long-term investors, the setup in Temple implies a cautious approach to appreciation expectations. While the current market conditions suggest stability and some pricing power, the data does not indicate robust growth potential. Long-hold investors should focus on the rental income aspect rather than expecting significant capital appreciation. The median home value and the low percentage of price reductions point towards a market that is unlikely to experience rapid appreciation but also less prone to steep declines.
A balanced strategy for investors would involve leveraging the current rental rates while being prepared for a market that will likely see gradual, rather than explosive, changes. With a median home value that remains accessible, Temple offers a solid foundation for those looking to build a stable investment portfolio focused on rental yields.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.