Retiring in Waco, Texas

Retiring in Waco: overview

Waco is in McLennan County, Texas, within the Waco, Temple & Brazos Valley region.

Waco is the McLennan County seat and the center of the Waco-area part of the Waco, Temple & Brazos Valley region. It is a services and hospital hub rather than a retirement-oriented town. The American Community Survey 2019-2023 five-year profile estimates Waco's population at 141,925 and its median age at 29.2, with 18,703 residents aged 65 or older, or 13.2 percent. That older-adult share is well below the 23.1 percent the same survey estimates for the adjoining suburb of Woodway.

For a retiree the case for Waco is access and cost: two hospital systems with large campuses, a Veterans Affairs medical center, a regional airport, a lake with public recreation, and median home values far below those in Woodway. The case against is that most of the housing market is geared to a younger, more renter-heavy population, that no age-restricted ownership community in Waco is profiled here, and that the city's property tax rates are higher than the suburban cities nearby. The sections below give the figures that public agencies publish and the year of each.

Cost of living in Waco

The 2019-2023 survey puts Waco's median household income at $51,468, against $115,729 for Woodway. Housing is correspondingly less expensive: the survey's median value for owner-occupied homes in Waco is $199,600, the median gross rent is $1,098 per month, and the median monthly owner cost for homes with a mortgage is $1,683. The city has 60,256 housing units and the survey estimates that 48.9 percent of occupied units are owner-occupied, so slightly more than half of households rent. These are survey estimates with margins of error, and they lag the market. A current listing or recent closed sale is a better guide to the price of an individual house.

Texas has no state personal income tax; see Texas retirement taxes. A lower purchase price helps, but property taxes, insurance and utilities are recurring costs that depend on the specific address. The City of Waco's website posts utility notices, including its annual water system maintenance.

Property taxes in Waco

Property in Waco is appraised by McLennan Central Appraisal District, whose office is at 315 S 26th Street in Waco. Each taxing unit sets its own rate. For tax year 2025, the Texas Comptroller's published rate tables (versions dated January 28, 2026) show the City of Waco at 0.755 per $100 of taxable value, made up of 0.5845 for maintenance and operations and 0.1705 for debt service, and Waco ISD at 1.0266 per $100 (0.7664 maintenance and operations and 0.2602 debt service). The same tables show McLennan County at 0.334805 and McLennan Community College District at 0.131974. As an illustration of the arithmetic only, those four rates add to 2.248379 per $100, so a home with a taxable value of $150,000 would have a bill of about $3,372.57 before other districts and before exemptions. Waco's city rate is more than twice the 0.363836 shown for the City of Woodway in the same table, though school and county taxes make up most of a bill in both places.

Because the tables are for tax year 2025 and rates change every budget year, confirm the current rates with the appraisal district. The Comptroller says its list reports rates provided by appraisal districts and may be updated after first publication.

Exemptions reduce taxable value; they are not cash payments. The Comptroller states that Tax Code Section 11.13(b) requires school districts to provide a $140,000 residence homestead exemption and that Section 11.13(c) requires an additional $60,000 exemption for homeowners age 65 or older or disabled. Taxing units can adopt local option exemptions, with minimums of $5,000 for the general homestead exemption and $3,000 for the age-65 exemption, according to the Comptroller. The amounts Waco's units actually grant should be confirmed with the appraisal district. The district's FAQ says only a one-time application is required unless a new one is requested, that applicants 65 or older must apply no later than one year from their 65th birthday, and that its home page offers online homestead filing. The school-tax ceiling that comes with the age-65 exemption is conditional; see homestead and age-65 exemptions and property taxes and appraisal districts.

Insurance and risk in Waco

Severe weather is the main insurance question. The National Weather Service describes tornadoes as capable of destroying well-made structures and says they can occur at any time of day or night and at any time of the year. Hail is a separate source of roof claims. The Texas Department of Insurance advises homeowners to file hail claims as soon as they can, take pictures and video of damage, get more than one repair estimate and avoid contractors who offer to waive a deductible, which is illegal under state law. It explains that roof coverage may be replacement cost or actual cash value, that companies can change roof coverage as roofs age, and that policyholders should ask whether the wind and hail deductible differs from other deductibles. Premiums are not quoted here because they vary by insurer, roof, claims history and address.

Flood risk varies block by block. FEMA says any place with a 1 percent or higher chance of flooding each year is considered high risk, that floods do not follow city limits or property lines, and that most homeowners insurance does not cover flood damage; flood insurance is a separate policy and is required for homes in high-risk areas with mortgages from government-backed lenders. Lake Waco, operated by the U.S. Army Corps of Engineers, has a stated mission that includes water supply for the city of Waco and flood control for the Waco area. Review the flood map for any specific address, particularly near creeks and Lake Waco.

Healthcare access in Waco

Waco has two major hospital campuses. Ascension Providence Hospital describes itself as a full-service hospital with 24/7 emergency care, a surgical center with robotic and image-guided technology, a Commission on Cancer accredited cancer program, designation as a Primary Stroke Center by The Joint Commission and designation as a Level II Stroke Center by the State of Texas. Its page says it has served the Waco community for more than 120 years, calls itself the first heart hospital in Waco, and says it brings Dell Children's pediatric emergency, NICU and specialty care to the city.

Baylor Scott & White Medical Center - Hillcrest is at 100 Hillcrest Medical Blvd and describes a 260-bed hospital with trauma and acute care, orthopedics and sports medicine, a Level III neonatal intensive care unit and a cancer center, the McClinton Cancer Center, accredited by the Commission on Cancer as a Community Cancer Center. Its emergency services are available 24 hours a day.

VA Central Texas lists a Waco location at 4800 Memorial Drive and its website refers to the Doris Miller VA Medical Center; the system's main location is in Temple. Hospital choice depends on physicians and Medicare or private plan networks, which change annually. For the general framework see the guide to Texas healthcare geography and Medicare.

Climate in Waco

Waco has a hot, humid-subtropical climate. The National Centers for Environmental Information's 1991-2020 normals for Waco Regional Airport show a normal daily high of 59.1 degrees Fahrenheit in January, 96.7 in July and 97.1 in August, and a normal January low of 35.8. Days at or above 90 degrees number 23.1 in June, 29.1 in July and 28.5 in August, and about 114.8 across a typical year by our arithmetic from the monthly values. Normal precipitation is lowest in July at 1.82 inches and highest in May at 4.44 inches, and the monthly normals add to about 36.4 inches by our arithmetic. Nights at or below freezing are limited to the colder months, with a normal of 11.5 in January and 9.8 in December. Drought and flash flooding both occur in this part of Texas.

The guide to Texas summer heat, humidity and climate by region compares Waco with other parts of the state.

Lifestyle and recreation in Waco

The City of Waco's website lists Cameron Park, Cameron Park Zoo, the Lake Waco Wetlands, the Texas Ranger Hall of Fame, the Waco Mammoth National Monument, downtown free parking and a Waco Transit System with bus routes among its attractions and services, and the city publishes a library and parks and recreation department. Lake Waco is managed by the U.S. Army Corps of Engineers, which says the lake offers fishing, camping and boating, and its page notes that cash is no longer accepted at Corps-operated campgrounds and that zebra mussels have been found in the lake.

Waco Regional Airport, a city department, says it has served Central Texas for more than 75 years, began as Waco Army Air Field in 1942, and is near Interstate 35. Its flight information page says passenger check-in and checked baggage processing close 45 minutes before departure. Airline schedules change, so check the airport's flight information page rather than relying on a summary.

The adjoining city of Woodway has a smaller, more suburban profile with parks and an arboretum of its own, and many households compare the two.

Housing in Waco

Housing in Waco is split almost evenly between owners and renters: the survey counts 60,256 housing units, with 48.9 percent of occupied units owner-occupied and 51.1 percent renter-occupied, compared with 91.3 percent owner-occupied in Woodway. Median home value is $199,600. No age-restricted ownership community in Waco is profiled in this guide, and households seeking a managed senior living setting should verify licensing, contract terms and fees with each provider.

For buyers the key decisions are neighborhood, school district, flood-map status, roof age and which taxing units apply to the address. The Comptroller's rate table lists Waco ISD at 1.0266 per $100 for tax year 2025, and other districts, including Midway ISD, serve parts of the Waco area, so confirm the district for any address before an offer.

Comparisons with Waco

• Waco vs Temple: retirement compared

Places near Waco

• WoodwayA McLennan County city of about 9,500 residents on the west side of Lake Waco, adjoining Waco, with a high share of older residents, mostly owner-occupied housing, city parks and an arboretum, and two Waco hospitals close by.
• HewittA McLennan County suburb south of Waco with a median household income of $83,798, 17.8 percent of residents aged 65 or older, Midway ISD schools, hospitals in Waco, hail and tornado exposure, and a municipal water system whose regional-plan need rises from 16 percent of demand in 2020 to 47 percent in 2070.

Guides relevant to Waco

• Texas healthcare geography and Medicare network considerations
• Texas summer heat, humidity and climate by region