Real Estate Investing in Waco, Texas (76706)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 76706 (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: 12.7% of homes vacant — above national norms.
- Lower household income: $39,317 median — tenant affordability is tighter.
What’s happening in Waco, TX (76706)?
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Market Analysis: 76706 Waco
Meanwhile, ZIP 76706 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $254K median. It rewards specialists, not generalists.
The 76706 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Statewide comparisons place 76706 among TX's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Who lives in 76706 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Distressed ZIPs reward experience. healthy returns are possible in 76706, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Waco:
Property Strategy for 76706
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $105,471 | $1,000 | 6.8% | +5.5% | $105,471 |
| 2BR | $142,420 | $1,240 | 6.3% | +7.7% | $71,210 |
| 3BR | $236,584 | $1,600 | 4.9% | +7.0% | $78,861 |
| 4BR | $365,097 | $1,650 | 3.3% | +7.1% | $91,274 |
| 5BR | $475,817 | — | — | +8.2% | $95,163 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 76706 Compare?
| Metric | 76706 | Waco | Waco, TX | Texas |
|---|---|---|---|---|
| Home Value | $253,884 | $120,642 | N/A | $297,000 |
| 5-Year CAGR | 4.9% | 4.2% | N/A | 5.4% |
| Avg Rent | $1,421 | $1,382 | N/A | - |
| Cap Rate | 4.4% | 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 76706 (Waco, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $253,884 |
| Monthly Rent | $1,421 |
| Price-to-Rent | 14.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.7% |
| Cap Rate | 4.4% |
| 5-Year IRR | 9.3% |
📈 Home Appreciation
| 1-Year | +4.1% ▲ |
| 3-Year CAGR | +0.9% ▲ |
| 5-Year CAGR | +4.9% ▲ |
| 10-Year CAGR | +7.4% ▲ |
🏠 Rent Trends
| 1-Year | -9.4% ▼ |
| 3-Year CAGR | -3.1% ▼ |
| 5-Year CAGR | +1.6% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.4%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 76706
Population: 40,668
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 76706
Schools in This ZIP Code
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
How strong are rents in Waco, TX?
Waco, TX rentals go for roughly $1,421/mo a month. That puts gross yield in solid territory relative to $254K acquisition costs.
How strong is tenant demand in Waco, TX?
Tenant demand in Waco, TX is solid. The local workforce $1,421/mo rents across most rental classes.
What real estate strategy is ideal for Waco, TX?
Investors usually favor careful cash-flow rentals with hands-on management in Waco, TX. With home values at $254K and rents near $1,421/mo, other strategies can work but produce steady rather than outsized returns.
Does a duplex house hack pencil in Waco, TX?
Waco, TX is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $254K price point reasonable to enter.
How do home values compare in Waco, TX?
Waco, TX median home values land near $254K. That is reasonable territory for investors looking at $1,421/mo-per-month rentals.
You know 76706 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 76706 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 76706 ranks in Waco, TX
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