Wondering how far your dollar stretches in Waco compared to Houston? Below we break down housing costs, rent, taxes, income, and quality of life using 2026 data so you can make an informed relocation or remote-work decision. Every number is computed from Census, BLS, and Zillow data specific to these two metro areas.
| Waco | Metric | Houston | Difference |
|---|---|---|---|
| 86 | Cost of Living Index | 101 | +17.4% |
| $225,000 | Median Home Price | $320,000 | +42.2% |
| $1,050 | Median Monthly Rent | $1,262 | +20.2% |
| $48,500 | Median Household Income | $67,800 | +39.8% |
| 2.1% | Property Tax Rate | 1.9% | -9.5% |
| 4.0% | Unemployment Rate | 4.2% | +5.0% |
| 20 min | Average Commute | 29 min | +45.0% |
| 29.5 | Median Age | 34.5 | +16.9% |
| 280,000 | Metro Population | 7,470,000 | +2567.9% |
Data sourced from Census Bureau, BLS, Zillow, and ApartmentAdvisor (2024-2025). COL Index: 100 = national average.
Monthly mortgage assumes 6.5% interest, 30-year fixed, 20.0%down payment. PITI includes principal, interest, property tax, and homeowner's insurance.
Buying a home in Waco costs $1,597/month (PITI) compared to $2,218/month in Houston — a difference of $621/month or $7,452/year. The price-to-income ratio is 4.6x in Waco versus 4.7x in Houston, suggesting Waco is relatively more affordable for homebuyers relative to local incomes. At a 15% savings rate, it takes 6.2 years to save a down payment in Waco compared to 6.3 years in Houston.
Estimated on each city's median household income, single filer, standard deduction, 2025 rates.
| Tax Category | Waco | Houston |
|---|---|---|
| Gross Income | $48,500 | $67,800 |
| State Income Tax | None | None |
| Federal Income Tax | $3,691 | $6,365 |
| FICA (SS + Medicare) | $3,710 | $5,187 |
| Property Tax (on median home) | $4,725/yr | $6,080/yr |
| State Sales Tax Rate | 6.3% | 6.3% |
| Total Tax Burden | $7,401 (15.3%) | $11,552 (17.0%) |
| Take-Home Pay | $41,099 | $56,248 |
Texas has no state income tax, giving Waco residents a significant tax advantage. On median household income, total taxes (federal + state + FICA) come to $7,401 in Waco (15.3% effective) versus $11,552 in Houston (17.0% effective). After taxes, take-home pay is $41,099 in Waco and $56,248 in Houston. Property taxes add $4,725/year on the median Waco home versus $6,080/year in Houston.
These figures adjust for cost of living using the formula: adjusted = salary × (COL_destination / COL_origin). If you earn $48,500 in Waco (COL 86) and relocate to Houston (COL 101), you would need $56,959 to maintain the same purchasing power. This means you would need a raise of $8,459 to maintain the same standard of living in Houston.
Beyond costs, quality of life matters. The average commute in Waco is 20 minutes versus 29 minutes in Houston, a difference of 9 minutes each way. Waco's lower unemployment rate of 4.0% versus 4.2% suggests a stronger job market. Houston skews slightly older with a median age of 34.5 vs 29.5 in Waco.
Houston is 17.4% more expensive than Waco overall. Houston has a cost of living index of 101 compared to 86 for Waco (national average = 100). The biggest difference is housing: the median home costs $320,000 in Houston vs $225,000 in Waco.
The median home price in Houston is $320,000, which is $95,000 more than Waco's median of $225,000. Monthly rent follows a similar pattern: $1,262/month in Houston vs $1,050/month in Waco, a difference of $212/month or $2,544/year.
To maintain the same standard of living, a $48,500 salary in Waco is equivalent to $56,959 in Houston. This is based on the cost of living index ratio: Waco's COL index of 86 vs Houston's 101. Conversely, $67,800 in Houston equals $57,731 in Waco.
On a median household income, the combined federal, state, and FICA tax burden is $7,401 (15.3% effective rate) in Waco vs $11,552 (17.0% effective rate) in Houston. Property taxes on the median home are $4,725/year in Waco (2.1% rate) vs $6,080/year in Houston (1.9% rate). Sales tax rates are 6.3% in Texas and 6.3% in Texas.
Waco median household income: $48,500/yr. Houston median household income: $67,800/yr (Census ACS).
Median monthly rent: $1,050 in Waco vs $1,262 in Houston. Annualized that is $12,600 vs $15,144.
Waco offers a lower cost of living (index 86 vs 101), which lets remote-workers keeping a coastal salary stretch further. Houston typically wins on amenities and labor-market depth.
Waco and Houston numbers are pulled from Zillow ZHVI/ZORI (home values, rent), the U.S. Census Bureau ACS (income, demographics), and BEA RPP (cost-of-living index). Each value is timestamped on the page.
Source feeds (Zillow, Freddie Mac PMMS, Census ACS, BEA RPP) are refreshed on their native cadence. Page caches revalidate every 24 hours via Next.js ISR.
No. The Waco vs Houston cost-of-living page is educational reference using public data and standard formulas. It is not personalized tax, legal, or investment advice. Consult a licensed professional for material decisions.
Home prices use Zillow Home Value Index (ZHVI)[1]; rents use Zillow Observed Rent Index (ZORI)[1]. Median household income comes from the Census ACS 5-year estimates[2].
COL indices use the BEA Regional Price Parity methodology[3], normalized so 100 = national average.
Property tax rates are effective rates from the Tax Foundation[4], expressed as % of owner-occupied home value. Mortgage estimates assume 6.5% fixed rate[5], 30-year term, 20.0% down, $1,800/yr homeowners insurance.
Federal tax calculations[6] assume single filer, standard deduction. State tax uses the top marginal rate times taxable income after the state standard deduction. FICA = 6.2% Social Security (up to wage base) + 1.45% Medicare.
Salary equivalence uses adjusted = salary × (COL_destination / COL_origin). This captures cost-of-living shift but not state income tax differences.
Unemployment figures are the most recent monthly MSA-level readings from the BLS LAUS series[7].
Last reviewed is computed from the maximum retrievedAt across every source this page consumes.
City data from Census Bureau[2], BLS[7], and Zillow[1] (2024-2025). Tax calculations use 2025 IRS rates[6], single filer, standard deduction. Mortgage estimates assume 6.5% PMMS rate[5], 30-year term, 20.0% down. COL Index: 100 = national average[3]. Last reviewed .