Fixed point iteration method for multi-particle unit cell’s boundary condition is presented. On the basis of this method, the macroscopic effective material parameters can be obtained from a microscopic point of view. Multi-particle unit cell models containing some important microstructure characteristics of TP-650 titanium matrix composites are established. The real displacement constrained conditions are applied on the multi-particle unit cell using this method, and the mechanical properties and fracture behaviors of the composites under tensile loading are simulated. A good agreement was obtained between the experimental results and the numerical predictions, which verifying the rationality of the FE models based on fixed point iteration method.