Good news: your BAH goes further here than most duty stations. Here’s the real picture.
2026 BAH rates rose an average of 4.2% nationally, and the local housing market remains one of the most affordable at any Army installation. For most families above E-5, BAH covers housing comfortably — with room to spare. Here’s what your dollar actually buys in Central Texas.
Big Texas advantage
No state income tax. Texas is one of nine states with zero state income tax. Every dollar of your military pay and BAH goes further here than in states like Virginia, North Carolina, or Washington.
3BR home — Killeen
$1,100–$1,400/mo
widest selection
3BR home — Harker Heights
$1,200–$1,500/mo
best schools
3BR home — Copperas Cove
$1,000–$1,300/mo
most affordable
E-5 w/deps BAH 2026
~$1,695/mo
covers 3BR with buffer
Potential monthly savings (E-5+)
$200–$400/mo
vs. on-post
Average price per sq ft
~$135–$144
below the national average
Median home price, Killeen
~$230K–$260K
VA loan down payment
$0
full entitlement, any price
Bell County property tax rate
~1.8–2.2%
factor into monthly payment
Monthly property tax (~$250K home)
~$375–$460/mo
Electricity (summer peak)
$180–$280/mo
Texas heat is real — AC runs June–Sept
Electricity (winter avg)
$80–$130/mo
Water / sewer / trash
$60–$90/mo
Internet (gigabit)
$50–$80/mo
On-post utilities
$0
included in BAH allotment
Commissary savings vs. civilian
~30% less
Fort Hood has two commissaries
HEB (off-post)
Highly recommended
Texas favorite; competitive prices, great selection
Gas (Central Texas avg)
Slightly below national avg
Dining out (casual)
$10–$18/person
Killeen/Harker Heights range
On-post CDC (subsidized)
Income-based
apply at MilitaryChildCare.com — waitlist is long
Private daycare (Killeen area)
$800–$1,200/mo
per child, infant–preschool
After-school programs on-post
Lower cost
MWR Youth Services programs available
Compared to high-cost military markets like San Diego, Northern Virginia, or the Pacific Northwest, Fort Hood is genuinely affordable. For most E-5+ families:
Is Fort Hood a cheap duty station overall?
Yes, relative to most Army installations. Housing costs and property taxes are the two categories to budget carefully; groceries, dining, and utilities run close to or below national averages.
Does BAH cover on-post utilities?
Yes — if you live on-post, utilities are included in your BAH allotment to Cavalry Family Housing. You won’t pay separately.
How much should I budget for summer electric bills?
$200–$280/month is a realistic range for a typical single-family home during peak summer heat (June–September) if you’re off-post.
Are property taxes really that high in Texas?
Yes, relative to many states — Bell County runs roughly 1.8–2.2%. Texas offsets this with no state income tax, so your overall take-home is often still higher than in income-tax states.
I’ll walk you through the full housing cost picture — rent vs. buy, BAH math, and what your dollar actually gets you in each neighborhood.
