Real Estate Investing in Federal Way, Washington (98003)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 98003 (Federal Way, WA)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 25.5 — hard to cash-flow at these prices.
What’s happening in Federal Way, WA (98003)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 98003 Federal Way
ZIP 98003 inside King County looks affordable on the surface — median value of $570K — but the discount exists for reasons that a careful buyer should understand before committing.
Rent of $1,863/mo on a $570K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 98003 sits below the stated 0.0% once reality is priced in.
Within WA, ZIP 98003 trails on several market indicators that neighboring King County submarkets outperform. The gap is real and significant enough to shape underwriting.
Employment concentration in 98003 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The right play in 98003 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Federal Way:
Property Strategy for 98003
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $212,358 | $1,880 | 6.4% | +4.2% | $212,358 |
| 2BR | $291,926 | $2,190 | 5.4% | +5.2% | $145,963 |
| 3BR | $541,860 | $2,870 | 3.8% | +6.3% | $180,620 |
| 4BR | $668,836 | $3,370 | 3.6% | +6.4% | $167,209 |
| 5BR | $744,010 | — | — | +6.6% | $148,802 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 98003 Compare?
| Metric | 98003 | Federal Way | Seattle-Tacoma-Bellevue, WA | Washington |
|---|---|---|---|---|
| Home Value | $569,819 | $592,139 | N/A | $591,536 |
| 5-Year CAGR | 3.5% | 3.1% | N/A | 5.9% |
| Avg Rent | $1,863 | $1,944 | N/A | - |
| Cap Rate | 2.6% | 2.6% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 98003 (Federal Way, WA). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 98003 (Federal Way, WA)?
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Property managers serving King County
Manage rentals here? List your business →Alki Property Management LLC specializes in apartment rentals. summary from their website
Brink Property Management offers residential property management and vacant home management services in Bellevue, providing marketing, tenant screening, rent collection, and maintenance. summary from their website
Full Service Property Management offers compassionate property management across Metro Seattle, including multi-family management, property marketing, and maintenance services. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $569,819 |
| Monthly Rent | $1,863 |
| Price-to-Rent | 25.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.6% |
| 5-Year IRR | 6.0% |
📈 Home Appreciation
| 1-Year | +4.3% ▲ |
| 3-Year CAGR | +2.8% ▲ |
| 5-Year CAGR | +3.5% ▲ |
| 10-Year CAGR | +7.7% ▲ |
🏠 Rent Trends
| 1-Year | +5.1% ▲ |
| 3-Year CAGR | +2.6% ▲ |
| 5-Year CAGR | +3.9% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.6%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 98003
Population: 52,210
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 98003
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 10,813 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What price range are homes in Federal Way, WA?
Expect median prices around $570K in Federal Way, WA. The market has run at a 0.0% 5-year CAGR, so entry costs have been reliable.
Is rental property easy to operate in Federal Way, WA?
For rental operators, Federal Way, WA rates as tenant-protective. The regulatory environment standard buy-and-hold operations.
Are renters plentiful in Federal Way, WA?
Tenant demand in Federal Way, WA is solid. The local workforce $1,863/mo rents across most rental classes.
How much is rent in Federal Way, WA?
The typical rental in Federal Way, WA commands about $1,863/mo monthly. That rent profile stable cash flow against the $570K purchase basis.
How quickly do rentals get leased in Federal Way, WA?
Federal Way, WA vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
You know 98003 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 98003 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 98003 ranks in Seattle-Tacoma-Bellevue, WA
Every ZIP in this metro, ranked. Free.
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