Real Estate Investing in Custer, Washington (98240)
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Should you buy in 98240 (Custer, WA)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 35.6 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Custer, WA (98240)?
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Market Analysis: 98240 Custer
This part of Whatcom County is not an easy win. The 98240 ZIP clocks in at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $673K asset, 98240 is the wrong submarket. If the plan prices in friction, the yield can still work.
The gap between 98240 and stronger Custer ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Employment concentration in 98240 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 98240 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 Custer:
Property Strategy for 98240
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $526,476 | $1,750 | 2.4% | +6.0% | $263,238 |
| 3BR | $662,795 | $2,440 | 2.7% | +7.1% | $220,932 |
| 4BR | $784,957 | $2,940 | 2.7% | +7.6% | $196,239 |
Market Trends
Home Value History (with trend line)
📊 How Does 98240 Compare?
| Metric | 98240 | Custer | Bellingham, WA | Washington |
|---|---|---|---|---|
| Home Value | $672,608 | $672,608 | N/A | $591,536 |
| 5-Year CAGR | 3.8% | 3.8% | N/A | 5.9% |
| Avg Rent | $1,575 | $1,575 | N/A | - |
| Cap Rate | 1.8% | 1.8% | - | - |
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 98240 (Custer, WA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $672,608 |
| Monthly Rent | $1,575 |
| Price-to-Rent | 35.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.8% |
| Cap Rate | 1.8% |
| 5-Year IRR | 5.7% |
📈 Home Appreciation
| 1-Year | +2.7% ▲ |
| 3-Year CAGR | +3.2% ▲ |
| 5-Year CAGR | +3.8% ▲ |
| 10-Year CAGR | +7.8% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (1.8%). 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 98240
Population: 3,208
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 98240
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 2,282 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Are rents high in Custer, WA?
Custer, WA rentals go for roughly $1,575/mo a month. That puts gross yield in solid territory relative to $673K acquisition costs.
Is Custer, WA good for landlords?
For rental operators, Custer, WA rates as tenant-protective. The regulatory environment standard buy-and-hold operations.
How expensive is real estate in Custer, WA?
Median home price in Custer, WA is near $673K, with a 5-year CAGR of 0.0%. Prices have been even-keeled and supportive of buy-and-hold strategies.
How do experienced investors play Custer, WA?
The best-fit strategy in Custer, WA is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
What is the tenant pool like in Custer, WA?
Expect a solid tenant pool in Custer, WA. The rental market absorbs $1,575/mo rents without meaningful friction.
You know 98240 now. You don’t know where it ranks.
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