Waco, TX

Very Low · 72

Texas · Population 141,925 · Updated March 2026

$1,098
Median Rent / Month
$51,468
Median Income
$199,600
Median Home Value
$1,094
Owner Costs / Month

Affordability

How far your income goes in Waco

25.6%
Rent-to-Income Ratio
Moderate
Rent takes 25-35% of median income — moderate affordability.

Tax Burden in Texas

State-level tax rates that affect your costs

0%
Income Tax (Top Rate)
6.25%
Sales Tax
1.6%
Property Tax Rate

Estimated Annual Costs

$13,176
Annual Rent
$0
State Income Tax
$3,194
Property Tax (est.)

Cost of Living Overview

Waco is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 72 (where 100 equals the national median), Waco residents can expect to pay median rent of $1,098/month while earning a median household income of $51,468/year.

The median home value in Waco, TX is $199,600, with typical monthly owner costs around $1,094 including mortgage, insurance, and taxes. With a rent-to-income ratio of 25.6%, Waco falls within the generally affordable range, though it's approaching the 30% burden threshold.

Texas has no state income tax, which can represent significant savings compared to high-tax states. Combined with a 6.25% sales tax rate and 1.6% effective property tax rate, the overall tax environment helps keep costs manageable in Waco.

Frequently Asked Questions

Common questions about living costs in Waco

What is the cost of living in Waco, TX?
The cost of living index in Waco, TX is 72 (US average = 100). Median monthly rent is $1,098, median household income is $51,468/year, and the median home value is $199,600.
Is Waco, TX affordable?
Yes, Waco is more affordable than the national average with a cost index of 72. The rent-to-income ratio is 25.6%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Waco, TX?
The median gross rent in Waco, TX is $1,098 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $13,176.
What is the median household income in Waco?
The median household income in Waco, TX is $51,468 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Texas?
Texas has a top income tax rate of 0%, a sales tax of 6.25%, and an effective property tax rate of 1.6%. Notably, there is no state income tax.

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