Real Estate Investing in Steilacoom, Washington (98388)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 98388 (Steilacoom, 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 27.6 — hard to cash-flow at these prices.
What’s happening in Steilacoom, WA (98388)?
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Market Analysis: 98388 Steilacoom
Not every below-median market is a bargain. Steilacoom's 98388 ZIP sits at signals that favor experienced operators who can absorb the risk $650K pricing implies.
Rent of $1,960/mo on a $650K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 98388 sits below the stated 0.0% once reality is priced in.
Nearby ZIPs in Steilacoom have seen price recovery that 98388 has not matched. Pierce County data supports the view that the spread is structural rather than temporary.
Employment concentration in 98388 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The 98388 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Steilacoom:
Property Strategy for 98388
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $453,122 | $1,890 | 3.0% | +3.2% | $226,561 |
| 3BR | $601,622 | $2,620 | 3.1% | +5.2% | $200,541 |
| 4BR | $795,499 | $2,970 | 2.7% | +6.4% | $198,875 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 98388 Compare?
| Metric | 98388 | Steilacoom | Seattle-Tacoma-Bellevue, WA | Washington |
|---|---|---|---|---|
| Home Value | $649,654 | $649,654 | N/A | $591,536 |
| 5-Year CAGR | 2.6% | 2.6% | N/A | 5.9% |
| Avg Rent | $1,960 | $1,960 | N/A | - |
| Cap Rate | 2.4% | 2.4% | - | - |
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 98388 (Steilacoom, WA). Anonymous, moderated, never written by AI.
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Property managers serving Pierce County
Manage rentals here? List your business →Harborside Property Management LLC offers commercial and residential property manager services in Tacoma & Gig Harbor, including single-family and multi-family homes. summary from their website
Haven Property Management is a full-service residential management company based in Federal Way, WA, covering the Greater Puget Sound area. summary from their website
HOA Community Solutions provides management services for homeowner associations. 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 | $649,654 |
| Monthly Rent | $1,960 |
| Price-to-Rent | 27.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.6% |
| Cap Rate | 2.4% |
| 5-Year IRR | 4.9% |
📈 Home Appreciation
| 1-Year | +3.5% ▲ |
| 3-Year CAGR | +2.4% ▲ |
| 5-Year CAGR | +2.6% ▲ |
| 10-Year CAGR | +7.1% ▲ |
🏠 Rent Trends
| 1-Year | -14.0% ▼ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.4%). 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 98388
Population: 7,054
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 98388
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 8,573 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the typical vacancy rate in Steilacoom, WA?
Steilacoom, WA vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
What is the median home value in Steilacoom, WA?
Typical homes in Steilacoom, WA go for around $650K. The 5-year CAGR of 0.0% predictable price movement.
What is the average monthly rent in Steilacoom, WA?
Expect rents around $1,960/mo per month in Steilacoom, WA. With home values at $650K, the yield math works out to reasonable levels for rental investors.
Is Steilacoom, WA good for landlords?
Steilacoom, WA falls under WA landlord-tenant law, which is tenant-protective. That backdrop makes day-to-day property management reasonable.
How does Steilacoom, WA rate as a rental market?
Steilacoom, WA scores 3.0/5 for investability. Home values sit at $650K and rents near $1,960/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
You know 98388 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 98388 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 98388 ranks in Seattle-Tacoma-Bellevue, WA
Every ZIP in this metro, ranked. Free.
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