Waco is one of the top 20 emerging housing markets for 2022, according to the most recent index from the Wall Street Journal/Realtor.com.
The report analyzed the largest 300 metropolitan areas in the U.S., based on key metrics such as anticipated home price growth, economic vitality, and quality of life, to compile the top real estate markets for both homeowners and investors.
Home values in Waco have increased by over 27% year over year, while median rents for 3-bedroom properties grew by 30% over the past 12 months. Waco’s ideal location between Dallas-Fort Worth and Austin are attracting more people to Waco, helping to keep home values rising and the demand for rental property growing.
Here are 15 areas in the Waco metropolitan area to consider, including suburbs where more than 40% of households are occupied by renters.
Key takeaways
- Waco is home to over 138,000 residents in the city and nearly 271,000 in the metropolitan area.
- Home values in metropolitan Waco have increased by 27.5% over the past year, while median rent prices for 3-bedroom properties have grown 30% year over year.
- Neighborhoods in Waco with large percentages of renters include Beverly Hills, Hillsboro, Bullmead, and Waco.
>>Explore Roofstock's Waco investment properties.
Why invest in Waco?
Nearly 1,000 people a day are moving to Texas, and Waco is attracting its fair share. Waco is more affordable than larger urban areas, offers a good quality of life, and is ideally situated between Dallas-Fort Worth and Austin, according to Texas CEO Magazine.
Although the housing market in Waco is still very competitive, Redfin notes that homes are selling for a little less than the listing price on average and can go from active to pending in around 20 days.
Home values in Waco have increased by 27.5% over the past year, according to Zillow (February 2022). The most recent report from Zumper shows median rents for 3-bedroom properties in Waco have increased by 30% year over year (as of March 14, 2022), and over 50% of households in the metropolitan area are occupied by renters.
15 great areas in Waco for investment properties
Waco is home to 25 neighborhoods in the city, with 2 counties and over 4 dozen cities and towns in the 1,800 square mile metropolitan area.
Here are 15 areas in and around Waco to consider for investment property, based on data from:
- Redfin (median sales price, change in sales price, and days on market)
- Realtor.com (median listing price and change in listing price)
- Niche.com (suburb descriptions, population, median rent, percentage of renter-occupied households, and median household income)
Waco
Waco is midway between Dallas-Fort Worth and Austin and is known as one of the most charming small cities in the heart of Texas. Waco is home to Ascension Providence Hospital and Baylor University, has a dense suburban feel, and has more renters than homeowners:
- Population: 138,486
- Median listing price: $245,000
- Change in listing price (year over year): 22.6%
- Days on market: 20
- Median rent: $862
- Renter-occupied households: 54%
- Median household income: $40,190
- ZIP codes: 76633, 76701, 76705, 76710
Beverly Hills
Beverly Hills is 3 miles south of Waco and is a suburb where half of the residents rent their homes. The small town of Beverly Hills is near the Doris Miller VA Medical Center and Waco ISD Stadium, and it has a rural feel:
- Population: 2,494
- Median sale price: $124,000
- Change in sales price (year over year): No data available
- Days on market: 26
- Median rent: $905
- Renter-occupied households: 50%
- Median household income: $39,870
- ZIP code: 76711
Woodway
Niche.com ranks Woodway as the best place to live in the Waco area. Located 6 miles southwest of Waco, along the shore of Lake Waco, Woodway has a rural feel and good options nearby for dining and entertainment:
- Population: 8,865
- Median sale price: $550,000
- Change in sales price (year over year): No data available
- Days on market: 98
- Median rent: $1,393
- Renter-occupied households: 9%
- Median household income: $89,196
- ZIP code: 76712
Hillsboro
Located 35 miles north of Waco, along I-35, Hillsboro is known for its large number of restored Victorian homes. Hillsboro has a sparse suburban feel, and nearly half of residents rent their homes:
- Population: 8,342
- Median sale price: $196,000
- Change in sales price (year over year): 35.5%
- Days on market: 25
- Median rent: $790
- Renter-occupied households: 47%
- Median household income: $44,444
- ZIP code: 76645
Hewitt
Hewitt is 10 miles southwest of Waco, along I-35 and a short distance from Ascension Providence Hospital and Baylor Scott & White Medical Center-Hillcrest. Hewitt has a suburban-rural feel and is ranked as the second-best place to live in the Waco area by Niche.com:
- Population: 14,523
- Median sale price: $347,000
- Change in sales price (year over year): No data available
- Days on market: 43
- Median rent: $1,155
- Renter-occupied households: 27%
- Median household income: $72,077
- ZIP code: 76643
Robinson
Niche.com ranks Robinson as one of the best places to live in Texas. Robinson has a rural feel and is adjacent to the suburb of Beverly Hills, about 8 miles south of Waco, along Highway 77:
- Population: 11,646
- Median sale price: $259,000
- Change in sales price (year over year): No data available
- Days on market: 87
- Median rent: $1,244
- Renter-occupied households: 21%
- Median household income: $80,184
- ZIP codes: 76655, 76706, 76711, 76716
Lorena
Lorena is located along the NAFTA Superhighway, a transportation corridor that connects Mexican seaports to Canada. Located 13 miles southwest of Waco via I-35, the small town of Lorena has a suburban-rural feel:
- Population: 1,995
- Median sale price: $272,000
- Change in sales price (year over year): -19.8%
- Days on market: 10
- Median rent: $832
- Renter-occupied households: 25%
- Median household income: $78,750
- ZIP codes: 76630, 76655
Clifton
Although small in size, Clifton is known for being one of the best small art towns in America and for its diverse art colony. Located 35 miles northwest of Waco, Clifton has a rural feel, and more than a third of residents rent their homes:
- Population: 3,391
- Median sale price: $169,000
- Change in sales price (year over year): No data available
- Days on market: 26
- Median rent: $834
- Renter-occupied households: 36%
- Median household income: $49,000
- ZIP code: 76634
West
The small suburb of West is located along I-35, about 20 miles north of Waco. West has a rural feel, and more than a third of households are occupied by renters:
- Population: 2,860
- Median sale price: $268,000
- Change in sales price (year over year): No data available
- Days on market: 89
- Median rent: $895
- Renter-occupied households: 37%
- Median household income: $47,174
- ZIP code: 76691
Groesbeck
Groesbeck is 40 miles east of Waco via State Highway 164, and is a short distance from Fort Parker State Park and Lake Limestone. Groesbeck has a sparse suburban feel and is ranked as one of the best places to buy a house in the Waco area by Niche.com:
- Population: 4,288
- Median sale price: $323,000
- Change in sales price (year over year): No data available
- Days on market: 48
- Median rent: $678
- Renter-occupied households: 37%
- Median household income: $38,618
- ZIP code: 76642
Lacy-Lakeview
Located 8 miles northeast of Waco, Lacy-Lakeview is a suburb with more renters than homeowners. Lacy-Lakeview is near the Texas State Technical College in Waco and the TSTC Waco Airport and has a dense suburban feel:
- Population: 6,633
- Median sale price: $185,000
- Change in sales price (year over year): No data available
- Days on market: 77
- Median rent: $729
- Renter-occupied households: 57%
- Median household income: $35,310
- ZIP code: 76705
Mexia
Mexia is located at the intersection of U.S. Highway 84 and State Highways 14 and 171, about 40 miles east of Waco. Mexia has a sparse suburban feel, and nearly half of residents rent their homes:
- Population: 7,356
- Median sale price: $155,000
- Change in sales price (year over year): No data available
- Days on market: 52
- Median rent: $707
- Renter-occupied households: 41%
- Median household income: $36,565
- ZIP code: 76667
McGregor
McGregor is 20 miles southwest of Waco, at the intersection of Highway 84 and Highway 37. McGregor has a sparse suburban feel and is ranked as one of the best places to live in the Waco area by Niche.com:
- Population: 5,144
- Median sale price: $112,000
- Change in sales price (year over year): No data available
- Days on market: 97
- Median rent: $952
- Renter-occupied households: 34%
- Median household income: $58,514
- ZIP code: 76657
Bullmead
Located 5 miles northeast of Waco, residents of Bullmead enjoy easy access to Baylor University and Texas State Technical College Waco. Bullmead has a sparse suburban feel and a large proportion of renter-occupied households:
- Population: 10,556
- Median sale price: $224,000
- Change in sales price (year over year): No data available
- Days on market: 1
- Median rent: $747
- Renter-occupied households: 41%
- Median household income: $41,696
- ZIP codes: 76705, 76715
Marlin
Marlin is a suburb of Waco where nearly half of the residents rent their homes. Located 30 miles southeast of Waco, Marlin has a sparse suburban feel:
- Population: 5,607
- Median sale price: $178,000
- Change in sales price (year over year): 26.8%
- Days on market: 95
- Median rent: $452
- Renter-occupied households: 49%
- Median household income: $21,667
- ZIP code: 76661
>>Explore Roofstock's Waco investment properties.
