Cost of living in Waco, TX
Waco is a bit cheaper than most of Texas. Median rent is $1,165 a month, 17% lower than the Texas median of $1,403, and the median home is worth $221,700, 22% lower than the Texas median of $283,800.
Cost of living57 of 100. Higher means more affordable.
Overall grade for Waco: F
- Median rent
- $1,165Texas $1,403
- 2-bedroom fair rent
- $1,297HUD FY2027
- Median home value
- $221,700Texas $283,800
- Monthly cost to buy
- $1,508Loan and property tax
- Property tax
- $3,537Median per year
- Income to rent
- $47,000At 30% of pay
Is Waco expensive?
Prices only tell half the story. The typical household here earns $54,365, so the median home costs 4.1 times a year of income, against 3.6 times across Texas and 4.1 times across the US. So for people who earn local wages, homes here are harder to afford than in most of Texas.
Our cost of living grade for Waco is B- (57 of 100), comparing it with US cities of 50,000+ people. A higher grade means more affordable.
| Measure | Here | Texas | US |
|---|---|---|---|
| Median rent17% lower than Texas | $1,165 | $1,403 | $1,413 |
| Median home value22% lower than Texas | $221,700 | $283,800 | $332,700 |
| Home value to income13% higher than Texas | 4.1x | 3.6x | 4.1x |
| Median household income31% lower than Texas | $54,365 | $78,476 | $80,734 |
| Renters paying 30%+ of income on rent7 points higher than Texas | 58% | 52% | 51% |
| Median property tax per year16% lower than Texas | $3,537 | $4,232 | $3,119 |
Rent in Waco
HUD's fair market rents for Waco, TX HUD Metro FMR Area run from $903 for a studio to $1,705 for 4 bedrooms. A two-bedroom is $1,297 a month, which takes an income of about $52,000 a year to stay at 30% of pay. HUD figures include utilities and describe a typical, modest unit.
58% of renters in Waco already spend 30% or more of their income on rent, against 52% across Texas.
Income you need to rent
| Unit | Rent | Yearly income at 30% |
|---|---|---|
| Studio | $903 | $36,000 |
| 1 bedroom | $1,029 | $41,000 |
| 2 bedrooms | $1,297 | $52,000 |
| 3 bedrooms | $1,693 | $68,000 |
| 4 bedrooms | $1,705 | $68,000 |
Buying a home in Waco
Buying the median $221,700 home with 20% down ($44,340) and a 30-year loan at 7.28% costs about $1,214 a month for the loan plus $295 a month in property tax, $1,508 in all. Homeowners insurance, HOA dues and upkeep come on top.
That is $343 a month more than the median rent, so renting is cheaper month to month. Buying pays off mainly if you stay long enough for the home to build equity.
Taxes
Texas has no state income tax, which helps take-home pay. The trade-off is high property tax, set by the county, city, school district and other local bodies.
The median homeowner in Waco pays $3,537 a year in property tax, 16% lower than the Texas median of $4,232 and 13% higher than the US median. Sales tax in most of Texas tops out at 8.25%.
Monthly cost to buy a median home
- Mortgage payment
- $1,214
- Property tax
- $295
- Median rent, for comparison
- $1,165
Based on a $221,700 home in Waco, 20% down and a 30-year loan at 7.28% (Freddie Mac average, week of 2026-10-01). Property tax is the median paid locally, or the county median where the local figure is not published. Insurance and fees are not included.
Waco cost of living compared with nearby cities
Census medians. Cost grade compares each place with US places of its own size.
| Place | Distance | Median rent | Median home | Household income | Cost grade |
|---|---|---|---|---|---|
| Waco | $1,165 | $221,700 | $54,365 | B- | |
| Beverly Hills | 2 mi | $942 | $156,700 | $47,313 | D+ |
| Woodway | 5 mi | $1,653 | $370,500 | $115,108 | D |
| Bellmead | 6 mi | $1,107 | $155,100 | $52,075 | C+ |
| Lacy-Lakeview | 7 mi | $917 | $160,600 | $56,924 | B |
| Hewitt | 7 mi | $1,538 | $273,300 | $83,511 | B- |
| Robinson | 7 mi | $1,419 | $302,200 | $99,289 | B |
What these numbers leave out
We only show costs we can source for Waco itself: rent, home prices, property tax and incomes from the Census Bureau, fair market rents from HUD, and a mortgage payment at the current Freddie Mac average rate. Groceries, utilities, car insurance and health care are not included, because no public source publishes them city by city in Texas.
Cost of living in Waco: common questions
Is Waco, TX expensive to live in?
Waco is a bit cheaper than most of Texas. Median rent is $1,165 a month, 17% lower than the Texas median of $1,403, and the median home is worth $221,700, 22% lower than the Texas median of $283,800. Prices only tell half the story. The typical household here earns $54,365, so the median home costs 4.1 times a year of income, against 3.6 times across Texas and 4.1 times across the US. So for people who earn local wages, homes here are harder to afford than in most of Texas.
How much do you need to earn to live in Waco?
To rent a median home at $1,165 a month and keep rent at 30% of income, you need about $47,000 a year. To buy the median home, the monthly cost is about $1,508, which takes around $60,000 a year by the same rule.
What is the average rent in Waco?
The median rent across all units is $1,165 a month (Census). HUD's fair market rent is $903 for a studio, $1,029 for 1 bedroom, $1,297 for 2 bedrooms, $1,693 for 3 bedrooms, $1,705 for 4 bedrooms.
How much is property tax in Waco?
The median homeowner in Waco pays $3,537 a year in property tax, 16% lower than the Texas median of $4,232 and 13% higher than the US median. Sales tax in most of Texas tops out at 8.25%.
Sources: US Census Bureau 2020-2024 ACS 5-year, HUD Fair Market Rents FY2027, Freddie Mac PMMS (week of 2026-10-01). Updated 2026-10-04.