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 | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,730 | $208,564 | 0.83% | C |
U.S. Census Bureau data (2024)
The ZIP code 76554 presents a mixed tenant pool for Section 8 housing. With a population of 2,344, 21.6% of residents are renters, indicating that while there is a significant portion of the population seeking rental housing, it is not overwhelmingly dominated by renters. The median household income in this area is $75,500, which provides a benchmark for assessing the financial capacity of potential tenants.
The typical market rent in this ZIP is $1,392 per month, which constitutes approximately 18.4% of the median household income. This suggests that for many households, the cost of renting can be a substantial portion of their earnings. However, the Fair Market Rent (FMR) for the area is set at $1,140 for fiscal year 2024, indicating that the market rent is above the FMR, which could present challenges for tenants relying solely on vouchers.
To determine if this ZIP has deep voucher demand, we must consider the percentage of renters and the gap between market rent and FMR. Given that the market rent exceeds the FMR by $252, landlords might find that some tenants will struggle to cover the additional costs beyond what their vouchers provide. This could lead to a scenario where landlords need to either accept lower rents or offer additional incentives to attract and retain tenants.
A landlord in ZIP 76554 should expect a tenant profile that includes individuals and families who rely on Section 8 vouchers but also have supplementary income to meet the higher market rent. These tenants will likely be cautious about budgeting and may require landlords to offer competitive terms to secure a lease agreement. Landlords should prepare for the administrative requirements associated with Section 8 tenancy and ensure they are familiar with the guidelines for setting rent amounts that are both fair and compliant with HUD regulations.
In conclusion, while ZIP 76554 does not have an overwhelming number of renters, it does present opportunities for landlords willing to work with Section 8 tenants. The key will be balancing the need for a competitive rental rate with the realities of the voucher system and local income levels. Landlords should anticipate a tenant pool that requires careful management and possibly some flexibility in rental agreements to accommodate the financial constraints faced by voucher holders.
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.