Waco vs Houston for Families (2026)

A family-focused comparison of housing, income, taxes, and overall affordability in Waco, TX vs Houston, TX.

  • 2BR rent: $1,300/mo in Waco vs $1,700/mo — 24% difference
  • More affordable homeownership in Waco: $210K median vs $280K
  • Higher median household income in Houston: $56K/yr vs $48K
  • Waco has no state income tax — more take-home for family expenses

Family cost comparison

Metric
Waco
Texas
Houston
Texas
2BR rent/month$1,300Better$1,700
Median home price$210KBetter$280K
Median household income$48K$56KBetter
Est. childcare/month$1,079Better$1,235
State income taxNoneBetterNone
Sales tax (combined)8.3%Better8.3%

Frequently asked questions

Which city is better for raising a family — Waco or Houston?

Based on housing costs, income, and taxes, Waco scores slightly better for families overall. Waco has lower 2-bedroom rents, Waco is more affordable for homebuyers, though both cities have strong family communities.

What is the average 2-bedroom rent in Waco vs Houston?

As of Q1 2026, median 2BR rent is $1,300/month in Waco and $1,700/month in Houston. Waco is 24% cheaper for a 2-bedroom apartment.

Can a family afford to buy a home in Waco or Houston?

The price-to-income ratio in Waco is 4.4× ($210K home, $48K income) vs 5.0× in Houston. A ratio below 3× is generally considered affordable. Waco is more achievable for first-time family homebuyers.

How much does childcare cost in Waco vs Houston?

Based on cost-of-living indices, estimated childcare (infant/toddler) runs approximately $1,079/month in Waco and $1,235/month in Houston. These are estimates — actual costs vary by provider and program type.

Which city has lower taxes for families?

Waco (Texas) has no state income tax vs Houston (Texas) has no state income tax. For a dual-income family earning $120K combined, the difference can mean $0+/month in take-home.

Childcare estimates based on national average scaled by COL index. Data: Zillow, BLS, Numbeo, Tax Foundation · Q1 2026

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