Rent vs buy in Waco, TX
In Waco, Texas, the typical rent is $1,342 /mo and the typical home value is $192,729.
Buying comes out ahead by $16k over 7 years
Using Waco's typical rent and home value, the calculation applies 20% down and today's mortgage rate. The break-even point arrives in year 5.
Our clearly labeled opinion, with the math shown. These are estimates, not quotes. If you change a number, the stamp changes.
- Owning is ahead by
- $16k after 7 years
- Break-even point
- year 5 when owning catches up
- Full cost of owning
- $1,861 /mo year 1, against $1,342 rent
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For Waco's figures, the stamp relies on typical rent and home value. Your choices for rent, price and years can flip the result.
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Is it cheaper to rent or buy in Waco?
Across 7 years, buying costs $15,912 less, including the money returned to you when you sell. In year 5, owning's net cost falls below renting's and remains lower.
Renting. Owning. Net cost to date, by year.
Average rent compared with mortgage payments in Waco
Rent and mortgage payments don't cover everything. Here are all monthly costs for year 1. They use Waco's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,342 | All of it, every month |
| Mortgage payment | $1,051 | $926 of it is interest in year 1 |
| Property tax | $255 | 1.59% of the value a year |
| Insurance | $125 | Census median for the city |
| Upkeep | $161 | 1% of the value a year |
| Owning, cash out | $1,592 | $125 of it builds equity |
| Lost return on the down payment | $313 | The annual return the cash would earn at 8.3% |
| Buying costs, spread out | $80 | 3.5% of the price over 7 years |
| True cost of owning | $1,861 | Take cash out, subtract the equity part and add the two lines above |
Numbers behind the Waco result
- Typical home valueZillow ZHVI, September 2026
- $192,729
- Typical rentZillow ZORI, September 2026
- $1,342 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Texas, 1995 to 2025
- 4.7% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Waco
- 1.59% of value
- Home insuranceCensus ACS 2020-2024, Waco
- $125 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would flip the result in Waco?
Every line shows the point at which the 7-year verdict in Waco changes. Everything else stays as it is.
Renting is cheaper when
- Our 4.7% figure is Texas's long-run rate; home prices grow by less than 3.6% a year.
- The rate for a mortgage remains above 8.69%.
- For a comparable home, monthly rent comes to under $1,170 (typical here: $1,342).
- Your move happens before year 5.
When buying comes out ahead
- Home prices grow by more than 3.6% a year.
- You lock in a mortgage rate under 8.69%; today's rate is 7.24%.
- You'd pay more than $1,170 a month to rent the same home.
- You remain 5 years or longer.
How Waco compares with 812 other cities
| Measure | Waco | Median city |
|---|---|---|
| Typical home value | $192,729 | $422,451 |
| Typical rent | $1,342 /mo | $1,837 /mo |
| Price-to-rent ratio | 12.0 (#761 of 813) | 18.5 |
| Home prices, last 10 years | 7.1% a year | 6.2% a year |
| Rents, last 5 years | 4.2% a year | 4% a year |
| Property tax | 1.59% | 0.87% |
| Households that rent | 51% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Cities elsewhere in Texas
- Toss-up. Houston, TX. Renting leads by $2k in this close call.
- Rent. San Antonio, TX. Renting comes out ahead by $10k.
- Renting has the advantage in Dallas, TX by $20k.
- Renting leads in Fort Worth, TX by $17k.
- Renting comes out ahead in Austin, TX by $111k.
- Toss-up. El Paso, TX. It's a toss-up, with buying ahead by $2k.
- Renting leads in Arlington, TX by $34k.
- Buying has the advantage in Corpus Christi, TX by $4k.
- Renting comes out ahead in Plano, TX by $105k.
- It's a toss-up in Lubbock, TX, with buying ahead by $2k.
- Renting has the advantage in Laredo, TX by $20k.
- Renting leads in Irving, TX by $36k.