Real Estate Investing in Tacoma, Washington (98407)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 98407 (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 (98407)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 98407 Tacoma
ZIP 98407 in Tacoma, WA carries a notable set of headwinds. Home values near $634K and rents of $2,176/mo sit inside a market where underwriting has to be tight.
For an experienced owner, 98407 can be a worth a close look for hunting ground — but the discount at $634K reflects genuine risk that outside investors often underestimate.
Statewide comparisons place 98407 among WA's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
The demographic picture in 98407 includes headwinds that any investor should price in. Income distribution skews lower than Tacoma averages, and tenant stability requires active management.
Strategically, 98407 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Tacoma:
Property Strategy for 98407
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $461,298 | $1,730 | 2.7% | +3.6% | $461,298 |
| 2BR | $518,233 | $2,130 | 3.0% | +5.2% | $259,116 |
| 3BR | $595,260 | $2,950 | 3.6% | +5.6% | $198,420 |
| 4BR | $740,216 | $3,350 | 3.3% | +5.9% | $185,054 |
| 5BR | $884,064 | — | — | +5.9% | $176,813 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 98407 Compare?
| Metric | 98407 | Tacoma | Seattle-Tacoma-Bellevue, WA | Washington |
|---|---|---|---|---|
| Home Value | $634,078 | $233,270 | N/A | $591,536 |
| 5-Year CAGR | 2.4% | 2.0% | N/A | 5.9% |
| Avg Rent | $2,176 | $1,844 | N/A | - |
| Cap Rate | 2.7% | 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 98407 (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 | $634,078 |
| Monthly Rent | $2,176 |
| Price-to-Rent | 24.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.1% |
| Cap Rate | 2.7% |
| 5-Year IRR | 5.1% |
📈 Home Appreciation
| 1-Year | +3.4% ▲ |
| 3-Year CAGR | +2.1% ▲ |
| 5-Year CAGR | +2.4% ▲ |
| 10-Year CAGR | +7.4% ▲ |
🏠 Rent Trends
| 1-Year | +5.4% ▲ |
| 3-Year CAGR | +4.4% ▲ |
| 5-Year CAGR | +3.7% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.7%). 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 98407
Population: 21,210
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 98407
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Tacoma Online Elementary School
Grant Elementary School
Hilltop Heritage Middle School
Jefferson Elementary School
Lowell 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 5,600 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How expensive is real estate in Tacoma, WA?
The median home value in Tacoma, WA is roughly $634K. That puts it reasonable relative to the WA statewide average.
What is the typical rental rate in Tacoma, WA?
Investors in Tacoma, WA typically see rents near $2,176/mo per month against $634K home values - a solid setup for rental cash flow.
What strategy should investors use in Tacoma, WA?
A careful cash-flow rentals with hands-on management strategy Tacoma, WA best. The market produces steady results for that approach at the $634K price point.
Is Tacoma, WA suited for a house hack?
For house hackers, Tacoma, WA is a challenging. The $2,176/mo rent on a unit helps defray the mortgage on a $634K property.
Does Tacoma, WA favor landlords or tenants?
Rental owners in Tacoma, WA deal with a tenant-protective legal framework. Most standard eviction processes run on reasonable timelines.
You know 98407 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 98407 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 98407 ranks in Seattle-Tacoma-Bellevue, WA
Every ZIP in this metro, ranked. Free.
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