property
Waco Renters Save Thousands Monthly Compared to Buying Homes
Waco data shows monthly rent payments falling below mortgage costs for comparable homes as rates stay elevated.
How we reported this
Waco renters now pay less each month than buyers on equivalent three-bedroom homes in several zip codes. Median rent for those properties reached $1,425 in June while a 30-year mortgage at 6.8 percent on a $265,000 purchase totals $1,725 after taxes and insurance.
The gap widened after the Federal Reserve held its benchmark rate steady through spring 2026. Local buyers face the same 20 percent down-payment hurdle that has persisted since 2023, while landlords have kept rents flat to fill vacancies in older stock.
Costs on University Parks Drive and near Cameron Park
Along University Parks Drive near Baylor University, a 1,600-square-foot rental lists for $1,350. The same floor plan sold last month for $248,000, producing a mortgage payment of $1,610. In the Cameron Park neighborhood, three listings from the Waco Housing Authority inventory show rents at $1,400 against purchase prices that would require $1,690 monthly outlays.
Greater Waco Chamber of Commerce reports from May counted 312 active rental listings against 187 homes under contract. Inventory turnover slowed to 48 days on average, giving tenants more leverage in negotiations.
What the numbers show for July decisions
McLennan County appraisal records list the median sale price at $265,000 through the first half of 2026, up 3 percent from the same period last year. Local credit unions quote 6.75 percent for well-qualified buyers, a level that adds roughly $300 to the monthly bill compared with 2024 rates.
Prospective buyers should run exact payment scenarios with lenders before touring. Renters weighing a move can compare current listings on Austin Avenue and 19th Street against mortgage calculators that factor in 1.9 percent property taxes and $2,200 annual insurance typical for Waco homes. Those steps clarify whether ownership costs will stay above rent for the next 12 months.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.