Real Estate Investing in Tacoma, Washington (98404)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 98404 (Tacoma, 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.
What’s happening in Tacoma, WA (98404)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 98404 Tacoma
This part of Pierce County is not an easy win. The 98404 ZIP registers softness in key indicators, and the playbook that works in cleaner markets often stalls here.
The investment case in 98404 is substantial only for operators who understand what they are buying. A $444K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
In the broader WA picture, 98404 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Employment concentration in 98404 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Distressed ZIPs reward experience. solid returns are possible in 98404, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Tacoma:
Property Strategy for 98404
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $318,580 | $1,510 | 3.4% | +4.5% | $318,580 |
| 2BR | $370,285 | $1,860 | 3.6% | +5.5% | $185,142 |
| 3BR | $434,131 | $2,600 | 4.3% | +5.6% | $144,710 |
| 4BR | $489,285 | $2,970 | 4.4% | +6.0% | $122,321 |
| 5BR | $539,864 | — | — | +6.0% | $107,973 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 98404 Compare?
| Metric | 98404 | Tacoma | Seattle-Tacoma-Bellevue, WA | Washington |
|---|---|---|---|---|
| Home Value | $443,725 | $233,270 | N/A | $591,536 |
| 5-Year CAGR | 2.0% | 2.0% | N/A | 5.9% |
| Avg Rent | $2,054 | $1,844 | N/A | - |
| Cap Rate | 3.6% | 2.8% | - | - |
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 98404 (Tacoma, 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 | $443,725 |
| Monthly Rent | $2,054 |
| Price-to-Rent | 18.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.6% |
| Cap Rate | 3.6% |
| 5-Year IRR | 5.6% |
📈 Home Appreciation
| 1-Year | +2.3% ▲ |
| 3-Year CAGR | +2.1% ▲ |
| 5-Year CAGR | +2.0% ▲ |
| 10-Year CAGR | +8.7% ▲ |
🏠 Rent Trends
| 1-Year | +1.1% ▲ |
| 3-Year CAGR | +3.7% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.6%). 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 98404
Population: 35,829
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 98404
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Birney Elementary School
Reed Elementary School
Angelo Giaudrone Middle School
Baker Middle School
Mann Elementary School
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 4,093 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What kind of vacancy should I budget for in Tacoma, WA?
Rental vacancy in Tacoma, WA is elevated. Investors should budget normal turnover but not chronic empty units.
How deep is the rental pool in Tacoma, WA?
Working renters make up the core of the Tacoma, WA tenant base. The pool is reasonable for investors targeting long-term holds.
Is rental property easy to operate in Tacoma, WA?
WA law tenant-protective for landlords, and Tacoma inherits those rules. Investors should still review local ordinances for rental licensing.
Is Tacoma, WA a good market for FHA house hackers?
House hacking in Tacoma, WA is a challenging. With home values around $444K and rents at $2,054/mo, owner-occupants can offset a meaningful share of PITI.
Is housing expensive in Tacoma, WA?
Expect median prices around $444K in Tacoma, WA. The market has run at a 0.0% 5-year CAGR, so entry costs have been measured.
You know 98404 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 98404 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 98404 ranks in Seattle-Tacoma-Bellevue, WA
Every ZIP in this metro, ranked. Free.
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