Real Estate Investing in Federal Way, Washington (98023)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 98023 (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 25.3 — hard to cash-flow at these prices.
What’s happening in Federal Way, WA (98023)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 98023 Federal Way
This part of King County is not an easy win. The 98023 ZIP stands at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
The investment case in 98023 is robust only for operators who understand what they are buying. A $614K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
From a cash-flow lens, 98023 offers a low basis, the region around Federal Way has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
A durable renter share of 35% in 98023 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
New investors are better served looking at Federal Way's stable or hybrid ZIPs before stepping into 98023. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Federal Way:
Property Strategy for 98023
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $252,377 | $1,990 | 5.7% | +5.9% | $252,377 |
| 2BR | $329,066 | $2,320 | 5.1% | +5.3% | $164,533 |
| 3BR | $564,635 | $3,040 | 3.9% | +6.5% | $188,212 |
| 4BR | $674,653 | $3,570 | 3.8% | +6.3% | $168,663 |
| 5BR | $755,302 | — | — | +6.1% | $151,060 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 98023 Compare?
| Metric | 98023 | Federal Way | Seattle-Tacoma-Bellevue, WA | Washington |
|---|---|---|---|---|
| Home Value | $614,458 | $592,139 | N/A | $591,536 |
| 5-Year CAGR | 2.8% | 3.1% | N/A | 5.9% |
| Avg Rent | $2,025 | $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 98023 (Federal Way, WA). Anonymous, moderated, never written by AI.
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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 | $614,458 |
| Monthly Rent | $2,025 |
| Price-to-Rent | 25.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.0% |
| Cap Rate | 2.6% |
| 5-Year IRR | 5.4% |
📈 Home Appreciation
| 1-Year | +1.7% ▲ |
| 3-Year CAGR | +1.9% ▲ |
| 5-Year CAGR | +2.8% ▲ |
| 10-Year CAGR | +7.2% ▲ |
🏠 Rent Trends
| 1-Year | -0.9% ▼ |
| 3-Year CAGR | +0.7% ▲ |
| 5-Year CAGR | +2.0% ▲ |
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 98023
Population: 49,593
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 98023
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 5,727 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Which investment style suits Federal Way, WA?
A careful cash-flow rentals with hands-on management strategy Federal Way, WA best. The market produces even-keeled results for that approach at the $614K price point.
Is rental property easy to operate in Federal Way, WA?
Landlord-friendliness in Federal Way, WA is tenant-protective. Eviction timelines and lease enforcement are considered reasonable by most property managers.
What is the typical rental rate in Federal Way, WA?
Investors in Federal Way, WA typically see rents near $2,025/mo per month against $614K home values - a solid setup for rental cash flow.
What kind of vacancy should I budget for in Federal Way, WA?
Federal Way, WA vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
Are tenants stable in Federal Way, WA?
Working renters make up the core of the Federal Way, WA tenant base. The pool is reasonable for investors targeting long-term holds.
You know 98023 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 98023 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 98023 ranks in Seattle-Tacoma-Bellevue, WA
Every ZIP in this metro, ranked. Free.
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