Waco, TX Rental Market for Investors
An estimated 76% of Waco's active listings could cash-flow as a short-term rental — here's what the numbers say for investors, as of October 2026.
As of October 2026, we analyzed 756 active for-sale homes in Waco, Texas. The typical listing is priced at $290,450 and is projected to generate about $41,290 a year as a short-term rental.
After setting aside an estimated 20% for operating costs, an estimated 75.9% of those homes could still cover an investor mortgage payment on short-term-rental income — well above the 53.1% median across the 200 major metros we track, ranking Waco #17 of 200 for cash-flow potential.
On market momentum: homes in Waco sit a median of 81 days on the market, and 21% of active listings came on in just the last 30 days — a slower-moving market, which shapes how much room there is to negotiate.
For a DSCR loan — which qualifies on the property's rental income rather than your personal income — that's a relatively healthy setup: in Waco, a meaningful share of listings throw off enough short-term-rental income, after costs, to cover an estimated investor mortgage payment.
What actually works in Waco
Waco is a broad cash-flow market right now: 304 of the 552 Waco homes, condos and townhomes we can price confidently clear a DSCR of 1.25. Nine in ten of them are priced under $319,000.
| Price | 2 bed | 3 bed | 4 bed | 5 bed |
|---|---|---|---|---|
| $150k–$250k | 61%1.32 | 92%1.66 | 100%1.95 | — |
| $250k–$350k | — | 52%1.27 | 66%1.35 | — |
| $350k–$500k | — | 6%0.95 | 21%1.08 | 78%1.34 |
| $500k+ | — | 5%0.67 | 0%0.66 | 0%0.80 |
Darker means a larger share of that group cash-flows. “—” means fewer than 8 active listings — too few to draw a conclusion from.
Waco in full
| Active for-sale homes analyzed | 756 |
|---|---|
| Median list price | $290,450 |
| Median projected STR revenue (annual, gross) | $41,290 |
| Median average daily rate (ADR) | $221 |
| Median occupancy | 51% |
| Median beds | 3 |
| Median size | 1,691 sqft |
| Estimated cash-flow-positive share | 75.9% |
| Median days on market | 81 days |
| New listings (last 30 days) | 21.0% of active |
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Estimates for educational purposes. Final terms subject to credit, property & program approval.
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