Waco, TX

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Waco short-term rental market based on reliable data.

Listings

793 / 1280

Reliable / Active

Cap Rate

16%

Middle-Earners Gross Yield

Revenue

$31,392

Middle-Earners Revenue

Occupancy

53%

Middle-Earners Occupancy

Home Value

$200,100

Median Home Sale Price

Top Earners

$66,100

Top-Earners Revenue

Waco

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Waco.

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C

Challenging to Investors

Waco Regulations

Waco permits STRs but Type II and III non‑owner‑occupied units are banned in most residential zones, creating a two‑tier market. New investors must obtain costly special permits, pass inspections, meet strict parking/operational rules, and pay a 15% occupancy tax, raising cost, risk, and complexity.

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About Waco

Waco is a mid-sized city in central Texas and the seat of McLennan County, with a population of approximately 140,000. Sitting along the Brazos River and the I-35 corridor, it has long served as a regional hub for higher education, healthcare, and agriculture, and in recent years has become a popular weekend destination in its own right. Waco is best known nationally as the home of Baylor University and as the setting for the Magnolia Market at the Silos, the home-goods venture launched by Chip and Joanna Gaines of "Fixer Upper" fame. It lies roughly 90 miles south of Dallas and about 100 miles north of Austin, which gives it a strategic position for travelers moving between the state's two largest metro areas.

One of the city's most distinctive sites is the Waco Mammoth National Monument, a preserved fossil bed where the remains of Columbian mammoths and other Ice Age animals were uncovered beginning in 1978 and later designated a national monument. The dig shelter and walking trails sit along the Bosque River, just a few minutes' drive northwest of downtown. Waco is also famously the birthplace of Dr Pepper, and the Dr Pepper Museum, located in a restored historic bottling plant in the city center, traces the soft drink's history from a small-town pharmacy recipe to a nationally recognized brand.

A short drive west of the city center leads to Cameron Park, one of the largest municipal parks in Texas, where miles of hiking and mountain biking trails wind through bluffs above the Brazos and Bosque rivers. Another major draw is the Texas Ranger Hall of Fame and Museum, which documents the storied history of the Texas Rangers law enforcement agency through exhibits of artifacts, weapons, and memorabilia. For visitors interested in the area's natural setting, Lake Waco offers boating, fishing, and shoreline parks within a short drive of downtown, providing a quiet counterpoint to the city's busier tourist corridors.

In summary, Waco offers short-term rental owners a market shaped by a steady mix of university visitors, family travelers, and the steady weekend traffic that the Magnolia brand continues to draw. Its central Texas location, compact layout, and clustering of marquee attractions make it an easy place for guests to explore on foot or by short drive, while the relative affordability of housing and the year-round calendar of campus events, sporting weekends, and seasonal festivals give the market a broad and dependable base of demand.

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