What's a good cap rate in Waco?

In Waco, cap rates typically run around 6.5% (Texas state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Waco deal lands versus this benchmark.

What's the average rent for a rental in Waco?

A typical rental in Waco runs about $1,240–$1,599/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Texas?

Texas's effective property tax rate is about 1.68% of value per year — the figure TrueCap applies by default for Waco deals. You can override it with the exact local rate.

Waco, TX

Waco rental property analysis

Waco has ridden Baylor University and an I-35 location between Dallas and Austin — steady student demand plus Central-Texas growth at reasonable prices.

Waco market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

6.5%

Texas state median

Typical rent

$1,240–$1,599/mo

HUD FMR · 2–3BR · 2026

Typical price

$210,000–$300,000

est., all-in

Property tax

1.68%

Texas effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Waco a good place to buy rentals?

Baylor demand and a central location support occupancy and gradual appreciation. Model Texas taxes; student submarkets need turnover-aware underwriting.

See the full Texasinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Waco

Near Baylor

Student rentals, high occupancy.

Woodway

Suburb; desirable, top schools, low vacancy.

East Waco

Value-add, higher cash flow.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Waco deal in 60 seconds

Paste a Waco address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Texas tax and HUD rent so you start from the right assumptions.

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