Real Estate Investing in Waco, Texas (76704)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 76704 (Waco, TX)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 14.5% of homes vacant — above national norms.
- Declining values: -0.4% 5-year CAGR — values have moved lower.
- Elevated poverty: 57.3% poverty rate — can affect rent collection.
- Lower household income: $19,966 median — tenant affordability is tighter.
What’s happening in Waco, TX (76704)?
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Market Analysis: 76704 Waco
Within McLennan County, the 76704 ZIP shows a lower entry point around $112K. From a cash-flow lens, operators who can improve stock here typically see outsized uplift.
In 76704, the deal is made on the buy and on the capex. robust entry prices of $112K leave room in the budget for light-to-medium renovation, with rent lift to match.
Across TX, value-add opportunity tends to concentrate where housing stock is older and entry prices are below the state median. ZIP 76704 stands at both traits clearly.
The a solid fit for angle on demographics here is renter willingness to pay a premium for renovated product. The 67% rental share provides scale for the strategy.
The strategy in 76704 is forced equity, not market equity. In practical terms, entry prices are accommodating at $112K, the returns sit in the renovation budget, not the holding period.
Here's what matters if you're considering buying a home in Waco:
Property Strategy for 76704
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $66,105 | $1,000 | 10.9% | +4.2% | $66,105 |
| 2BR | $90,512 | $1,240 | 9.9% | +7.2% | $45,256 |
| 3BR | $142,224 | $1,600 | 8.1% | +7.2% | $47,408 |
| 4BR | $181,733 | $1,650 | 6.5% | — | $45,433 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 76704 Compare?
| Metric | 76704 | Waco | Waco, TX | Texas |
|---|---|---|---|---|
| Home Value | $112,314 | $120,642 | N/A | $297,000 |
| 5-Year CAGR | N/A | 4.2% | N/A | 5.4% |
| Avg Rent | $1,423 | $1,382 | N/A | - |
| Cap Rate | 9.9% | 5.9% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 76704 (Waco, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $112,314 |
| Monthly Rent | $1,423 |
| Price-to-Rent | 6.6:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 15.2% |
| Cap Rate | 9.9% |
| 5-Year IRR | 9.5% |
📈 Home Appreciation
| 1-Year | -2.7% ▼ |
| 3-Year CAGR | -5.4% ▼ |
| 5-Year CAGR | -0.4% ▼ |
| 10-Year CAGR | +6.1% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (9.9%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 76704
Population: 7,387
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 76704
Schools in This ZIP Code
Nearby Schools (4 more)
Schools in adjacent ZIP codes that may serve this area
KENDRICK EL
PROVIDENT HEIGHTS EL
WEST AVENUE EL
DEAN HIGHLAND EL
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 5,693 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What investment strategy works best in Waco, TX?
For Waco, TX, value-add and BRRRR deals is the standard investor playbook. The market structure makes it a reasonable default approach.
Does the 1% rule work in Waco, TX?
With rents of $1,423/mo on $112K homes, Waco, TX close to the 1% rule for most properties. The actual rent-to-price ratio is 1.27%.
Where do home prices stand in Waco, TX?
The median home value in Waco, TX is roughly $112K. That puts it reasonable relative to the TX statewide average.
How does Waco, TX rate as a rental market?
The 4.0/5 investability rating in Waco, TX reflects its $112K prices and $1,423/mo rents. Investors generally consider it a solid option within TX.
Is Waco, TX good for house hacking?
For house hackers, Waco, TX is an attractive. The $1,423/mo rent on a unit helps defray the mortgage on a $112K property.
You know 76704 now. You don’t know where it ranks.
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How 76704 ranks in Waco, TX
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