Real Estate Investing in Waco, Texas
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in Waco, TX? Our answer, based on the numbers below.
For Homebuyers
GOOD FIT
Grade B (75/100)
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
For Investors
MIXED
3.1 / 5
(54/100)
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
Risks to Know
1 flag
- High vacancy: 12.9% of homes vacant — above national norms.
What’s happening in Waco, TX?
Click any question — our AI will research it live from the web and show you sources.
🏦 30-yr Fixed Rate:
6.76%
as of Sep 10
Source: Freddie Mac PMMS
Avg Investability
★★★★★
Avg Home Value
$120,642
Avg Monthly Rent
$1,382
ZIP Codes
12
Market Trends — Waco, TX
Home Value History
Rent History
Local Pulse Report
AI-researched developments and news for Waco, TX. Updated on demand as visitors ask.
Growth & development in Waco, TX Updated 144 days ago
Waco is experiencing significant growth with numerous new businesses, major employer expansions, and large-scale infrastructure and housing developments underway.
Opportunities
- The City of Waco has launched a $1.4 billion Downtown Redevelopment Plan, a 12-year initiative to improve infrastructure, greenspace, and community spaces. — This plan will enhance public amenities, improve city infrastructure, and attract further development. Texas Real Estate Research Center
- A 296-unit affordable senior housing project, Shady Acres Bungalows, is planned for Waco, with construction expected to close in mid-2026. — This project addresses a critical need for affordable housing options for seniors in the area. kcentv.com
- Electrolit is building its first U.S. manufacturing facility in Waco, a $400 million investment creating over 200 jobs. — This brings new manufacturing jobs and significant capital investment to the Waco economy. Greater Waco Chamber of Commerce
- Graphic Packaging International is investing $1 billion to build a new manufacturing facility in Waco. — This is Waco's largest economic development announcement to date, creating substantial employment opportunities. Greater Waco Chamber of Commerce
- Waco is implementing 11 new housing projects, adding over 700 single-family homes and 682 multifamily units. — These projects increase housing supply and offer more choices for residents. Economic Development Council
Concerns
- O-I Glass Company closed its Waco factory on December 1, 2023, resulting in hundreds of layoffs. — This closure led to significant job losses and impacted the local economy. US105
- The Applebee's on Valley Mills Drive in Waco abruptly closed in May 2024, laying off 20 to 35 employees with little notice. — This closure resulted in unexpected job losses for many local workers. KCENTV.com
- A proposed $10 billion data center and gas-fired power plant near Waco raises concerns about water use and air pollution. — The project could impose environmental costs on the local community. The Texas Tribune
- Several small businesses, including Sironia, Bicycle World, and both Fuzzy's Taco Shop locations, closed in Waco in early 2024. — These closures reduce local retail and dining options and impact the small business community. Small Business Landscape Shifts in Waco, Texas
Bottom line: Waco is experiencing substantial economic development and infrastructure improvements, though some businesses have faced closures.
Local news & events in Waco, TX Updated 144 days ago
Waco experienced a notable decrease in overall crime in 2025, alongside ongoing community events and persistent health and environmental concerns.
Opportunities
- Overall crime in Waco decreased by over 7% in 2025, with a 30% decrease since 2021, reaching historic lows. — This enhances public safety and improves the quality of life for residents. Waco Police Department
- The City of Waco approved a $4.3 million plan to build a new wastewater treatment plant in the Chalks Bluff community. — This investment aims to improve water quality and environmental impact in the long term. KCEN-TV
- Waco hosts numerous community events throughout the year, including the Texas Circuit Finals Rodeo, Waco Family & Faith International Film Festival, Spring at the Silos, Art on Elm, and Brazos Nights. — These events provide diverse entertainment and cultural enrichment opportunities for residents. Tour Texas, Wacoan, Waco Wise, City of Waco, Visit Waco, TX
- L3Harris in Waco completed modifications on a Boeing 777 for NASA, converting it into a next-generation airborne research center. — This highlights local contributions to scientific advancement and potentially high-skill employment. Waco Tribune-Herald
Concerns
- Waco police increased patrols in North Waco due to multiple reported burglaries in March 2024. — Increased crime in specific areas can reduce residents' sense of security and property safety. Waco Tribune-Herald
- Pharmaceuticals and household waste are causing water pollution in Lake Waco, as they are not fully filtered out by the current water treatment plant. — This poses potential environmental and long-term health risks to the community and aquatic life. Smore Newsletters
- A 2018-2019 Community Health Needs Assessment identified access to healthcare, unhealthy lifestyles (e.g., high obesity rates, low physical activity), and women's health as significant concerns in Waco-McLennan County. — These issues indicate barriers to well-being and can lead to higher healthcare costs and reduced quality of life. Center for Community Research and Development
- Waco and McLennan County are currently attainment areas for air quality, but declines could lead to more stringent regulations and increased costs of living and doing business. — Deteriorating air quality could negatively impact public health and impose economic burdens on businesses and residents. City of Waco
Bottom line: Waco is seeing positive trends in overall crime reduction, but persistent environmental and health challenges remain key community concerns.
Schools in Waco, TX Updated 144 days ago
Waco ISD has seen significant facility upgrades from a 2021 bond, but faces declining enrollment and academic performance challenges, leading to new virtual and behavioral health programs and a charter partnership for struggling schools.
Opportunities
- In November 2021, Waco ISD voters approved a $355 million bond for new schools and renovations, with the project closing $7.3 million under budget. — This voluntary capital investment provides modern learning environments and addresses long-standing facility needs. Waco ISD / KCENTV
- The new Waco High School, funded by the 2021 bond, opened in August 2025 with a $157.1 million budget and capacity for 2,150 students. — The new facility offers upgraded classrooms, a career and technical education wing, and a performing arts center, expanding educational opportunities. The Waco Bridge
- Waco ISD is launching a full-time virtual education program for the 2026-2027 school year, allowing students from anywhere in Texas to enroll. — This expands educational choice and flexibility for families, creating a new revenue stream for the district. KCENTV.com
- Beginning in Fall 2025, Waco ISD partnered with Waco Family Medicine to embed licensed behavioral health clinicians in three middle schools. — This program expands access to critical mental health support directly on school campuses for early identification and treatment. KCENTV.com
- Kendrick Elementary and a renovated South Waco Elementary also opened new campuses in August 2025 as part of the 2021 bond package. — These new and renovated facilities provide improved learning environments for students. KCENTV.com
Concerns
- Waco ISD received a D grade of 63 in the 2025 A-F Accountability Ratings, a one-point decrease from the previous year. — This indicates a decline in overall academic performance and may lead to increased state oversight. kcentv.com
- In 2025, eight of Waco ISD's 25 schools received F grades and six received D grades, with South Waco Elementary receiving its fourth consecutive F. — Consistent low performance at multiple campuses puts the district at risk of state intervention. The Waco Bridge
- Waco ISD's total student enrollment decreased by approximately 466 students (3.5%) from the prior year, totaling 12,910 students as of October 2025. — Declining enrollment can lead to reduced funding and potential resource reallocations within the district. Ballotpedia
- Waco ISD approved a three-year contract with Third Future Schools to operate South Waco and Dean Highland elementary schools starting Fall 2026 due to years of low academic performance. — This partnership means an outside operator will oversee curriculum and staffing, potentially altering the educational environment for students and staff. KCENTV.com
- Two Waco High School theater teachers were placed on administrative leave in January 2026 amid an investigation into reports of serious misconduct and negligence. — This situation can disrupt student programs and create uncertainty within the school community. KWTX
Bottom line: Waco ISD is investing in new facilities and programs while grappling with declining academic performance and enrollment, leading to significant operational changes.
Civic & policy in Waco, TX Updated 144 days ago
Waco has seen recent tax rate reductions from Waco ISD and state ballot measures, alongside new city fees and zoning changes aimed at downtown development and water security.
Opportunities
- Waco ISD trustees unanimously voted to decrease the 2023-2024 tax rate by 21 cents, saving average taxpayers about $650. — This reduces the financial burden on homeowners within the Waco Independent School District. KCENTV.com
- The City of Waco approved a 15-year lease agreement with Manhattan Project Beer Company for a new craft brewery near Baylor University in April 2026. — This brings new business, job opportunities, and generates lease revenue for the city. kcentv.com
- The Waco City Council approved resolutions in December 2025 to acquire all Brazos River Authority's storage rights in Lake Waco, adding 45.1 billion gallons of water storage. — This secures future water needs for the growing city and county, supporting continued development. kcentv.com
- State ballot measures in November 2025 increased homestead exemptions for school taxes, potentially saving typical Waco homeowners about $411. — These measures reduce property tax burdens for homeowners, especially the elderly and disabled. Waco Tribune-Herald
- The City of Waco is implementing a Form-Based Code for downtown redevelopment, focusing on walkability, mixed uses, and engaging streetscapes. — This aims to create more vibrant public spaces and support local businesses through flexible building uses. Waco Downtown Redevelopment Project
Concerns
- The Waco City Council approved a new Street Maintenance Fee of $2 per month for homeowners, effective October 1, 2024. — This imposes a new, recurring cost on homeowners in Waco. KWBU
- Homeowners can expect to pay higher property taxes in the 2024-25 fiscal year due to a 9.5% increase in average taxable property values, despite an unchanged tax rate. — This results in increased costs for homeowners without a corresponding increase in the tax rate itself. Wacoan®
- The Texas Legislature's Senate Bill 2024, effective September 1, 2025, banned the sale of THC vapes in Texas, impacting local businesses. — This restricts product availability for consumers and reduces revenue for affected local businesses. The Baylor Lariat
- The Waco City Council approved a ban on eight-liner electronic slot machines, effective January 1, 2026, despite opposition from owners and players. — This restricts a form of entertainment and income for some businesses and individuals. The Waco Bridge
- A new Texas law, effective April 1, 2026, restricts SNAP recipients from purchasing food or drinks with more than five grams of added sugar or artificial sweeteners. — This limits food choices for individuals relying on SNAP benefits. kcentv.com
Bottom line: Waco residents are experiencing a mix of property tax relief and new fees, alongside zoning changes and state-level restrictions on certain products.
AI-generated from public web sources. Always verify with official records. Not financial, legal, or investment advice.
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Best ZIP codes in Waco, TX
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Landlord Ground Truth
Real numbers from people who own or manage rentals in Waco, TX. Anonymous, moderated, never written by AI.
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Avg Home Value
$120,642
Avg Monthly Rent
$1,382
1% Rule
✓ Passes
Landlord Friendly (TX)
★★★★★
❄️
Cool Market
— Waco, TX metro
74
Days to pending
8.5%
Listings with price cuts
0.0%
Sale-to-list ratio
📅 Data as of August 29, 2026 — updated weekly
🎓 Colleges & Universities in Waco
4 Colleges
39,682 Students
5,693 Off-Campus Renters
B
4-Year Private · 20,824 students
C+
2-Year Public · 11,436 students
📍 ~3,110 students rent off-campus
C
2-Year Public · 7,217 students
📍 ~2,583 students rent off-campus
D
2-Year For-Profit · 205 students
Investor Insight: With 5,693 students living off-campus, Waco has substantial rental demand from the college population — typically stable, lease-renewing tenants.
Neighborhoods in Waco
Alta Vista
12 ZIP codes
Austin Avenue
12 ZIP codes
Baylor
12 ZIP codes
Brook Oaks
12 ZIP codes
Brookview
12 ZIP codes
Carver
12 ZIP codes
Cedar Ridge
12 ZIP codes
Dean Highland
12 ZIP codes
Downtown
12 ZIP codes
East Riverside
12 ZIP codes
Heart of Texas
12 ZIP codes
Kendrick
12 ZIP codes
Landon Branch
12 ZIP codes
Mountainview
12 ZIP codes
North Lake Waco
12 ZIP codes
North Waco
12 ZIP codes
Oakwood
12 ZIP codes
Parkdale Viking Hills
12 ZIP codes
Richland Hills
12 ZIP codes
Sanger Heights
12 ZIP codes
ZIP Codes in Waco, TX
76706
Home Value
$253,884
Rent
$1,421/mo
76708
Home Value
$229,185
Rent
$1,620/mo
76710
Home Value
$249,594
Rent
$1,171/mo
76707
Home Value
$141,257
Rent
$1,363/mo
76711
Home Value
$141,572
Rent
$1,341/mo
76704
Home Value
$112,314
Rent
$1,423/mo
76798
Home Value
$0
76701
Home Value
$319,901
Rent
$1,334/mo
76703
Home Value
$0
76714
Home Value
$0
76716
Home Value
$0
76702
Home Value
$0
Screen every ZIP in Waco
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View PlansFrequently Asked Questions About Waco, TX
Is Waco, TX a good market for buy-and-hold investors?
Waco, TX scores 3.1/5 for investability. Home values sit at $121K and rents near $1,382/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
Which real estate strategy fits Waco, TX?
Waco, TX investors pursuing value-add and BRRRR deals. The underlying economics ($121K prices, $1,382/mo rents) make it a reasonable choice.
What do landlords charge for rent in Waco, TX?
Investors in Waco, TX typically see rents near $1,382/mo per month against $121K home values - a solid setup for rental cash flow.
What does house hacking look like in Waco, TX?
House hacking in Waco, TX is reasonable to execute. Prices around $121K and rents of $1,382/mo solid owner-occupant economics.
How close is Waco, TX to meeting the 1% rule?
The 1% rule in Waco, TX is reasonable to achieve. Rent-to-price at the median ($1,382/mo on $121K) lands around.
Community Ratings
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