Temple vs. Belton for Real Estate Investors
Same county, 15 minutes apart, and a genuinely different investment case. Yields, taxes, rental rules, tenant pools, and exit speed — from CTXMLS sold and lease data, not portal estimates. Choosing where to live? That’s a different decision: the resident comparison is here.
It depends on the strategy, and the honest math is closer than most investors expect. Temple wins on flexibility: short-term rentals are allowed by-right, 41% of recent closings were under $250,000, and tenant demand is broader. Belton wins on carrying cost: its ~2.01% combined property tax rate vs Temple’s ~2.39% flips the net-of-tax yield comparison to roughly 4.97% vs 4.72% on the 3BR basis (June 12, 2026 lease medians over August 19, 2026-export median sold prices), and Belton homes reached contract sooner (47 vs 74 median days on market) in the August 4-October 3, 2026 CTXMLS window. If the plan involves Airbnb or short-term rental, Temple is the only option of the two.
- Median sold: Temple $268,600 (213 closings) · Belton $318,450 (98 closings)
- 3BR closed-lease median: Temple $1,550 · Belton $1,772 (through Jun 2026)
- Gross 3BR yield (Aug 19, 2026-export basis): Temple 7.11% · Belton 6.98% — net of taxes it flips: 4.72% vs 4.97%
- Entry diversity: 41% of Temple closings under $250K vs 18% in Belton
- Speed: Belton 47 median DOM vs Temple 74 · supply 4.9 vs 6.1 months
- Rules: Temple STRs by-right + 13% hotel occupancy tax · Belton residential STRs restricted (Ord. 2025-4950) + mandatory LTR registration
How Do Temple and Belton Compare on Investor Numbers?
Every current-window sales figure below uses raw Residential records with MLS City exactly Temple or Belton from the CTXMLS export observed October 3, 2026 (closings August 4-October 3, 61 days; no deduplication). Lease figures are Bell County MLS closed leases through June 12, 2026 — actual signed leases, not asking rents. Yield figures divide those June 12 lease medians by the citywide median sold prices from the August 19, 2026 export (closings June 22–August 19, 2026): $261,545 for Temple and $304,667.50 for Belton.
| Metric | Temple | Belton | Read |
|---|---|---|---|
| Median sold price | $268,600 | $318,450 | Temple = lower entry |
| Closings under $250K | 41% | 18% | Temple = deeper cash-flow shelf |
| Price / sq ft (closed) | $155 | $171 | Belton stock skews newer/larger |
| Median 3BR rent (closed leases) | $1,550 (n=215) | $1,772 (n=58) | Belton rents higher — thinner sample |
| Median 4BR rent | $2,000 | $2,050 | Near parity up-market |
| Gross 3BR yield (Aug 19, 2026-export basis) | 7.11% | 6.98% | Temple by a hair, gross |
| Combined property tax (investor) | ~2.39% | ~2.01% | Belton keeps more NOI |
| Median days on market (closed) | 74 | 47 | Belton reaches contract sooner |
| Months of supply | 6.1 | 4.9 | Belton has less supply at the observed sales pace |
| Close-to-original-list | 96.7% | 97.0% | Both below original asking prices |
| Active listings with a price cut | 55% | 52% | Sellers concede pre-offer in both |
| Share of closings with YearBuilt 2025+ | 28% | 21% | Builder competition higher in Temple |
Sources: CTXMLS whole-market export observed October 3, 2026 (Temple 213 / Belton 98 raw closed records, August 4-October 3; 642 / 234 Active records); Bell County MLS closed-lease export through 2026-06-12; tax rates are approximate combined city+county+ISD rates per the Temple vs Belton tax breakdown. Price and ratio figures are medians. DOM excludes negative values (Temple n=213; Belton n=97). Supply = Active records ÷ (61-day closing count / 61 × 30). Price-cut shares use Active records; YearBuilt shares use all closed records. Yields use the June 12, 2026 lease medians and August 19, 2026-export citywide median sold prices (closings June 22–August 19, 2026), not bedroom-matched sale cohorts.
Why Does Belton Beat Temple After Property Taxes?
Gross yield says Temple. But investors pay the full tax rate — no homestead exemption — and the two cities are 38 basis points apart. Subtract each city’s approximate combined rate from its gross 3BR yield and the leaderboard flips:
| 3BR basis | Temple | Belton |
|---|---|---|
| Gross yield (June 12 leases ÷ Aug 19, 2026-export prices) | 7.11% | 6.98% |
| − combined property tax rate | 2.39% | 2.01% |
| Net-of-tax yield | 4.72% | 4.97% |
This is an approximation — it treats assessed value as purchase price and ignores insurance, management, maintenance, and vacancy, which hit both cities similarly. The point survives the simplification: the entire Temple gross-yield lead is smaller than the tax gap. A Belton 3BR at the median keeps more operating income than a Temple 3BR at the median, before strategy enters the picture. Two cautions: Belton’s 3BR lease sample is thin (58 closings), and new-construction MUD districts in either city can push combined rates to ~2.40%+ — pull the exact parcel from Bell CAD before you trust any yield number, including these.
Which Strategies Actually Work in Each City?
Temple — the flexibility play
Best for: STR/MTR operators, sub-$250K cash-flow buys, house hackers, and investors who want multiple exit strategies on one property.
$268,600 median · 41% of closings under $250K · 3BR rent $1,550 · STRs by-right
Temple permits short-term rentals by-right: register annually, carry liability insurance, remit the 13% combined hotel occupancy tax (7% local + 6% state). The mid-term rental lane is real too — BSW, the VA hospital, and data-center corridor contractors keep furnished demand alive. And the sub-$250K shelf is deep enough to buy for LTR cash flow without touching new-build pricing. The tradeoff: a 2.39% tax rate and 28% share of closings with YearBuilt 2025+, which means builder incentives compete with your resale exit. Recent closed-sale records include Pecan Creek (12 closings in the window), Mesa Ridge (7), and Lake Pointe (12). These are all residential closings, not a verified investor-buyer subset; subdivision stems include abbreviated phase labels.
Belton — the tax-and-tenant play
Best for: long-term-hold landlords on single-family product, lowest-carry underwriting, UMHB-adjacent rentals, and faster exits.
$318,450 median · 3BR rent $1,772 · ~2.01% tax · 47 median DOM
Belton is the disciplined landlord’s market: higher rents, the county’s friendlier tax rate, Belton ISD tenant demand, a UMHB student-and-staff niche, and homes that reached contract 27 days sooner than Temple’s (47 vs 74 median days on market) in the August 4-October 3, 2026 window. The constraints are hard ones: residential STRs are effectively off the table (Ordinance 2025-4950 limits them to the Old Town Redevelopment Area and 3+ acre lots), long-term rentals require city registration, and the sub-$250K entry shelf is less than half the size of Temple’s (18% vs 41% of closings). Recent closing volume concentrates in Three Creeks (20 across its phases) and Morgan’s Point Resort.
After neighborhood complaints, Belton restricted short-term rentals in standard residential zones — operations are limited to the Old Town Belton Redevelopment Area or lots over 3 acres. If Airbnb, VRBO, or furnished mid-term flexibility is part of the underwriting, buy Temple. Ordinances change; verify the current rules with each city before the option period ends.
Who Actually Rents in Temple vs. Belton?
Temple’s tenant demand is the more diversified of the two: Baylor Scott & White and the VA hospital (healthcare staff and travel nurses), the data-center corridor’s contractor rotation, and Fort Hood commuters. Belton’s demand is narrower but sticky: Belton ISD households who rent before they buy, UMHB students and staff, and county-seat professionals. Narrow is not bad — tenants on 12-month leases in school-driven neighborhoods renew more and turn over less. It just prices differently: Belton’s $1,772 3BR median partly reflects tenants paying for the school district.
What Changed in These Two Markets This Summer?
| Shift | What the data shows |
|---|---|
| Belton stopped falling | Earlier 2026 windows showed Belton down ~10% year-over-year. The trailing comparison from the Aug 5, 2026 export reads flat (−0.1%, Aug-Oct 2025 vs May-Jul 2026), with the current 61-day median at $318,450. Stabilizing, not surging. |
| Sellers concede up front | 55% of active Temple listings and 52% of Belton’s have cut price at least once — while Temple closes at 96.7% and Belton at 97.0% of original list. The negotiation happens in the listing history. |
| Demand backdrop grew | Meta’s $1.2B+ Temple data center went live July 22, 2026 (~100 permanent roles, corridor construction ongoing) — a durable layer under Temple-side rental demand. Details: data center impact. |
| Temple supply loosened | 6.1 months (Temple) and 4.9 (Belton) at the observed sales pace, up from 4.6 and 4.1 on the August 19 export — Temple now carries more inventory relative to sales; neither city gives landlords pricing power. Underwrite flat rents. |
Which City Fits Your Investor Profile?
| Investor profile | Buy | Why |
|---|---|---|
| Cash-flow investor (LTR) | Temple — or run both | Deeper sub-$250K shelf; but check the tax-flip math — Belton’s net can win at the median |
| STR / Airbnb operator | Temple | Only option — Belton restricted residential STRs |
| MTR / furnished operator | Temple | BSW, VA, and corridor contractor demand cluster on the Temple side |
| Long-hold single-family landlord | Belton | Higher rents, lower taxes, stickier school-driven tenants, faster exits |
| Lowest-carry underwriter | Belton | ~2.01% combined rate keeps the most NOI in the county’s two big cities |
| House hacker (owner-occupant) | Temple | More 2-4 unit stock and entry points — full breakdown: house hacking in Temple |
My investor deals still skew about 4:1 Temple over Belton — the entry points in 76501 and 76504 at $215K-$245K keep producing positive numbers with long-term tenants, and the STR flexibility is worth the Temple address by itself if that lane is even a maybe for you.
But I’ll say what the spreadsheet says: the Belton case is better than it was in the spring. In July I called Belton a falling knife and said I wanted stabilization first — the trailing data now reads flat, not falling. Pair that with the lower tax rate and the $1,772 3BR rent, and a median Belton buy keeps more operating income than a median Temple buy. If you’re a set-it-and-forget landlord on single-family product with no STR ambitions, Belton deserves a real look now instead of a reflexive pass.
What I’d still avoid: buying either city on an appreciation story. Both are balanced markets where over half the active listings have already cut price. Buy the property-level math — rent, taxes, insurance, and the exit — or don’t buy.
Who Is This Comparison NOT For?
- STR dreamers set on Belton: the ordinance decided this one. Don’t underwrite an exception you don’t have in writing.
- Appreciation speculators: flat trailing medians in both cities. Buy for yield or don’t buy here.
- National-average underwriters: at 2.0-2.4% property tax plus Texas insurance, a pro forma built on 1.2% tax and $100/month insurance will look great and bleed cash. The investor market report has the full cost stack.
- Residents choosing a hometown: different decision, different page — Temple vs. Belton for living.
Temple vs. Belton Investor FAQ
Is Temple or Belton better for real estate investors?
It depends on the strategy, and the honest math is closer than most investors expect. Temple wins on flexibility: short-term rentals are allowed by-right, 41% of recent closings were under $250,000, and tenant demand is broader. Belton wins on carrying cost: its ~2.01% combined property tax rate vs Temple’s ~2.39% flips the net-of-tax yield comparison to roughly 4.97% vs 4.72% on the 3BR basis (June 12, 2026 lease medians over August 19, 2026-export median sold prices), and Belton homes reached contract sooner (47 vs 74 median days on market) in the August 4-October 3, 2026 CTXMLS window. If the plan involves Airbnb or short-term rental, Temple is the only option of the two.
What are typical rents in Temple vs Belton?
From Bell County MLS closed leases through June 12, 2026: the median 3BR lease was $1,550/month in Temple (215 closings) vs $1,772 in Belton (58 closings), and the median 4BR was $2,000 in Temple vs $2,050 in Belton. Belton rents run higher, as did its citywide median sold price in the August 19, 2026 export ($304,667.50 vs $261,545; closings June 22–August 19, 2026), the sale-price basis used for the dated yields. The Belton 3BR sample is thinner, so verify against live comps for a specific property.
Which city has lower property taxes for investors?
Belton. Approximate combined rates run ~2.01% in Belton vs ~2.39% in Temple, and investors get no homestead exemption, so the full gap hits the operating statement. On a $300,000 rental that is roughly $1,140 a year of extra carry in Temple. One trap on both sides: some new-construction districts add MUD taxes that push the combined rate to ~2.40% or more. Pull the exact parcel’s rate from Bell CAD before underwriting.
Can I run an Airbnb in Belton or Temple?
In Temple, yes: short-term rentals operate by-right with annual registration, liability insurance, and a 13% combined hotel occupancy tax (7% local plus 6% state). In Belton, effectively no: Ordinance 2025-4950 restricted residential-zone STRs, leaving only the Old Town Belton Redevelopment Area and lots over 3 acres. Belton also requires rental registration for long-term rentals. Ordinances change, so verify the current rules with each city before buying for an STR or MTR strategy.
Are Belton home prices still falling?
The freefall story is stale. Earlier 2026 windows showed Belton down roughly 10% year-over-year, but the trailing comparison from the August 5, 2026 CTXMLS export shows Belton medians essentially flat (about -0.1%, comparing Aug-Oct 2025 to May-Jul 2026), and the current 61-day window median is $318,450 with 47 median days on market. Sellers are still conceding through price cuts (52% of active Belton listings have cut at least once), but the data now reads stabilizing, not falling.
Want the Numbers Run on a Specific Property?
Tell me the city, budget, and strategy. I’ll send the honest screen — rent comps, tax rate for the actual parcel, and whether the math works — not a pitch.