Killeen is directly adjacent to the main cantonment of Fort Hood, and as such its economy is heavily dependent on the post and the soldiers (and their families) stationed there.
Killeen, Burnet and Lampasas counties are represented in the Texas House of Representatives by the semiretired veterinarian and rancher Jimmie Don Aycock, a Republican first elected on November 7, 2006.
As of the census of 2000, there were 86,911 people, 32,447 households, and 22,972 families residing in the city. The population density was 2,458.9 people per square mile (949.3/km²). There were 35,343 housing units at an average density of 999.9/sq mi (386.0/km²). The racial makeup of the city was 45.78% White, 33.49% Black, 0.78% Native American, 4.33% Asian, 0.91% Pacific Islander, 8.99% from other races, and 5.72% from two or more races. Hispanic or Latino of any race were 17.80% of the population.
There were 32,447 households out of which 42.0% had children under the age of 18 living with them, 53.9% were married couples living together, 13.4% had a female householder with no husband present, and 29.2% were non-families. 22.3% of all households were made up of individuals and 3.3% had someone living alone who was 65 years of age or older. The average household size was 2.67 and the average family size was 3.12.
In the city the population was spread out with 29.9% under the age of 18, 16.0% from 18 to 24, 35.7% from 25 to 44, 13.6% from 45 to 64, and 4.9% who were 65 years of age or older. The median age was 27 years. For every 100 females there were 100.7 males. For every 100 females age 18 and over, there were 100.1 males.
The median income for a household in the city was $34,461, and the median income for a family was $36,674. Males had a median income of $26,502 versus $21,799 for females. The per capita income for the city was $15,323, compared to the national per capita of $21,587. About 11.2% of families and 12.9% of the population were below the poverty line, including 18.5% of those under age 18 and 8.6% of those age 65 or over.
In 2007, Coldwell Banker ranked Killeen, Texas as the most affordable housing market in the United States.
Killeen is served by a small regional airfield known as Skylark Field (ILE), the larger Killeen-Fort Hood Regional Airport (GRK), and the HOP public bus transit system. The HOP buses are easily identified by their teal and purple color exteriors.
Major highways that run through Killeen are U.S. Highway 190 (Central Texas Expressway (or CenTex), Business Loop 190 (Veterans Memorial Boulevard), State Highway 195, Spur 172 (leading into Fort Hood main gate), and Interstate 35 (10 miles away in Belton).