Real Estate Investing in Port Townsend, Washington (98368)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 98368 (Port Townsend, WA)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 10.8% vacancy may signal weakening demand.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
What’s happening in Port Townsend, WA (98368)?
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Market Analysis: 98368 Port Townsend
Not every below-median market is a bargain. Port Townsend's 98368 ZIP reports signals that favor experienced operators who can absorb the risk $643K pricing implies.
Rent of $2,374/mo on a $643K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 98368 sits below the stated 0.0% once reality is priced in.
Regionally, 98368 sits on the difficult end of the WA spectrum. The a strong candidate for read — for disciplined operators — is that pricing reflects the difficulty.
Put differently, 17,401 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
Strategy in 98368 is an operator game, not a passive one. On balance, entry prices of $643K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Port Townsend:
Property Strategy for 98368
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $503,128 | $1,190 | 1.7% | +5.7% | $503,128 |
| 2BR | $618,737 | $1,400 | 1.6% | +6.9% | $309,368 |
| 3BR | $681,479 | $1,950 | 2.1% | +7.6% | $227,160 |
| 4BR | $801,145 | $2,350 | 2.1% | +7.4% | $200,286 |
| 5BR | $1,001,036 | — | — | +7.9% | $200,207 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 98368 Compare?
| Metric | 98368 | Port Townsend | Washington |
|---|---|---|---|
| Home Value | $643,169 | $643,169 | $591,536 |
| 5-Year CAGR | 2.8% | 2.8% | 5.9% |
| Avg Rent | $2,374 | $2,374 | - |
| Cap Rate | 2.9% | 2.9% | - |
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 98368 (Port Townsend, WA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $643,169 |
| Monthly Rent | $2,374 |
| Price-to-Rent | 22.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.4% |
| Cap Rate | 2.9% |
| 5-Year IRR | 5.6% |
📈 Home Appreciation
| 1-Year | +2.4% ▲ |
| 3-Year CAGR | +1.7% ▲ |
| 5-Year CAGR | +2.8% ▲ |
| 10-Year CAGR | +7.6% ▲ |
🏠 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 (2.9%). 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 98368
Population: 17,401
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 98368
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
Frequently Asked Questions
What is the average home sale price in Port Townsend, WA?
Expect median prices around $643K in Port Townsend, WA. The market has run at a 0.0% 5-year CAGR, so entry costs have been even-keeled.
What is the renter demographic in Port Townsend, WA?
Tenant quality in Port Townsend, WA ranks as solid. Landlords generally report reliable occupancy at market rents of $2,374/mo.
Is house hacking profitable in Port Townsend, WA?
House hacking in Port Townsend, WA is reasonable to execute. Prices around $643K and rents of $2,374/mo solid owner-occupant economics.
Do rentals sit vacant long in Port Townsend, WA?
Expect elevated vacancy in Port Townsend, WA. Rents at $2,374/mo are absorbed by the tenant base without meaningful lag.
How landlord-friendly is Port Townsend, WA?
Landlord-friendliness in Port Townsend, WA is tenant-protective. Eviction timelines and lease enforcement are considered reasonable by most property managers.
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