I've got 4 different 223s that I use for coyotes. I've used 55 gr Hornady V-Max factory loads with no problems. All that I've seen is one hole where the bullet entered and that's it, no exit hole. I've seen 55 gr. Nosler Ballistic Tips in Federal loads do the same thing. Full metal jacket (FMJ or ball loads) are pretty much useless, since the tend to bore through the coyote. All of my shots are well under 100 yards too. Maybe it depends on where you hunt or the size of the coyotes, but the 223 is the smallest cartridge that I'd use on coyotes here.
Judd Cooney had a good article on rifle calibers for furbearers in last months Fur Fish Game. The article dealt with caliber selection and fur damage caused by calibers. His first choice is the 220 Swift, followed by the 22-250, for his area and type of hunting. Most of his hunting is out West where the shots can be at long range. MI VHNTR