Side-by-side comparison of Denton, TX and Waco, TX — cap rates, rent, prices, and investment metrics.
Cash flow: Waco has the edge with an estimated cap rate of 3.81% compared to Denton's 2.76%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $325,000 in Denton vs $205,000 in Waco, while rents come in at $1,520/mo and $1,150/mo respectively.
Growth & appreciation: Denton is growing faster at 2.8% annually vs Waco's 0.9%. Denton leads on home value appreciation at 3.1% per year. Strong population growth typically translates to sustained rental demand and long-term price support.
Costs & risk: Property taxes are 1.76% in Denton vs 1.7% in Waco. Vacancy rates of 5.2% and 6.2% are mixed — Denton has the tighter rental market.
Bottom line: Waco edges out Denton on most key metrics. While cap rates are moderate at 3.81%, Waco's overall profile is stronger. Use our free calculators to model specific deals in Denton or Waco.