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 |
|---|---|---|---|---|
| 1BR | $900 | $76,627 | 1.17% | B |
| 2BR | $1,110 | $93,686 | 1.18% | B |
| 3BR | $1,540 | $132,695 | 1.16% | B |
| 4BR | $1,870 | $169,588 | 1.1% | B |
U.S. Census Bureau data (2024)
The classification of ZIP code 76541 in Killeen, TX, hinges on its financial metrics, particularly focusing on rental yields and market stability. The Federal Market Rent (FMR) for ZIP 76541 in fiscal year 2024 is projected at $1000 per month, while the market rent stands slightly lower at $940 per month. This indicates a decent yield potential, given that the median home value in the area is $121,994. A straightforward calculation reveals that the annualized FMR yield, based on the median home value, is approximately 9.8%, which is calculated as ($1000 * 12) / $121,994.
Stability, however, is another critical factor. With 76.4% of residents being renters, there is a strong demand for rental properties, suggesting a stable market. However, the lack of data on days on market (DOM) introduces uncertainty regarding how quickly properties can be leased or re-leased. The average household income of $37,349 provides insight into the economic health of the area, but without knowing the percentage of income spent on rent, it's challenging to fully gauge the stability.
Given these figures, ZIP 76541 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The yield is solid but not exceptionally high, and the high percentage of renters suggests a reliable demand for rental units. However, the absence of DOM data prevents a definitive assessment of the property turnover rate, which is crucial for determining the overall stability of the market. For landlords and small-portfolio investors, the combination of a good yield and a high proportion of renters makes it a viable option for generating consistent cash flow, albeit with some caution advised due to incomplete stability indicators.
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.