Is it cheaper to rent or buy in Waco, TX?

At today's prices, buying the median home in Waco, TX costs an estimated $1,839/month (mortgage, tax, insurance, maintenance) versus $1,445/month to rent. Renting is cheaper upfront, but buyers build equity over time. Use the calculator above to find your personal breakeven.

What is the price-to-rent ratio in Waco?

The price-to-rent ratio in Waco, TX is approximately 14x (median home price ÷ annual rent). At 14x, homes in Waco, TX are relatively affordable compared to rents. Buyers who plan to stay 5+ years typically come out ahead.

How much do I need to earn to buy a home in Waco?

Based on conventional lending guidelines (28% housing DTI), you'd need roughly $69,233 in annual household income to qualify for a mortgage on the median-priced home in Waco, TX.

How long should I plan to stay in Waco before buying makes sense?

The breakeven point depends on your down payment, mortgage rate, and how aggressively you'd invest if renting. In a market like Waco, TX with a 14x price-to-rent ratio, most buyers need at least 4–6 years to come out ahead. Run your scenario in the calculator above.

Housing Market Analysis · 2026

Rent vs Buy in Waco, TX

Local prices pre-filled. Adjust any input to match your situation.

Median Home Price $246,129

Median Rent $1,445/mo

Price-to-Rent Ratio 14x

YoY Price Change -1.3%

Income Needed $69K

Should you buy in Waco?

Price-to-Rent Ratio

14x — strongly favors buying

At 14x, homes in Waco, TX are relatively affordable compared to rents. Buyers who plan to stay 5+ years typically come out ahead.

Monthly Cost Gap

Monthly ownership costs run about $394 above median rent in Waco, TX. This relatively tight gap makes the rent-vs-buy decision especially sensitive to how long you stay in the home.

Price Trends

Home prices in Waco, TX declined 1.3% year-over-year, which creates potential buying opportunities but also signals some market softness worth monitoring.

Affordability

With an income threshold of $69K, Waco, TX is among the more accessible markets for first-time buyers — though the decision still hinges on how long you plan to stay.