Real Estate Investing in Tacoma, Washington (98405)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 98405 (Tacoma, 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.
- Elevated vacancy: 8.6% vacancy may signal weakening demand.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
What’s happening in Tacoma, WA (98405)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 98405 Tacoma
Investors eyeing 98405 need to respect the fundamentals at play. Home values of $463K come alongside slower price movement and elevated management overhead.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $463K asset, 98405 is the wrong submarket. If the plan prices in friction, the yield can still work.
Within WA, ZIP 98405 trails on several market indicators that neighboring Pierce County submarkets outperform. The gap is real and notable enough to shape underwriting.
Turning to rents, 25,306 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 98405 is an operator game, not a passive one. Put differently, entry prices of $463K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Tacoma:
Property Strategy for 98405
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $334,260 | $1,510 | 3.3% | +2.3% | $334,260 |
| 2BR | $405,033 | $1,860 | 3.3% | +4.8% | $202,516 |
| 3BR | $463,874 | $2,600 | 4.0% | +5.0% | $154,625 |
| 4BR | $503,424 | $2,970 | 4.2% | +5.1% | $125,856 |
| 5BR | $549,856 | — | — | +4.8% | $109,971 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 98405 Compare?
| Metric | 98405 | Tacoma | Seattle-Tacoma-Bellevue, WA | Washington |
|---|---|---|---|---|
| Home Value | $463,329 | $233,270 | N/A | $591,536 |
| 5-Year CAGR | 1.8% | 2.0% | N/A | 5.9% |
| Avg Rent | $1,640 | $1,844 | N/A | - |
| Cap Rate | 2.8% | 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 98405 (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 | $463,329 |
| Monthly Rent | $1,640 |
| Price-to-Rent | 23.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.3% |
| Cap Rate | 2.8% |
| 5-Year IRR | 4.5% |
📈 Home Appreciation
| 1-Year | +2.4% ▲ |
| 3-Year CAGR | +1.6% ▲ |
| 5-Year CAGR | +1.8% ▲ |
| 10-Year CAGR | +8.4% ▲ |
🏠 Rent Trends
| 1-Year | -6.4% ▼ |
| 3-Year CAGR | +1.0% ▲ |
| 5-Year CAGR | +2.6% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.8%). 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 98405
Population: 25,306
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 98405
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 5,600 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How much rent can I charge in Tacoma, WA?
Rental rates in Tacoma, WA average $1,640/mo. Tenant demand and $463K home values make the yield look reasonable by investor standards.
How do home values compare in Tacoma, WA?
The median home value in Tacoma, WA is roughly $463K. That puts it reasonable relative to the WA statewide average.
Is Tacoma, WA a good market for buy-and-hold investors?
Tacoma, WA scores 2.0/5 for investability. Home values sit at $463K and rents near $1,640/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
Do rentals sit vacant long in Tacoma, WA?
Tacoma, WA vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
Is the tenant base reliable in Tacoma, WA?
Tacoma, WA offers a predictable renter base at the $1,640/mo rent level. Tenant turnover is reasonable for well-managed properties.
You know 98405 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 98405 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 98405 ranks in Seattle-Tacoma-Bellevue, WA
Every ZIP in this metro, ranked. Free.
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