Real Estate Investing in Lacey, Washington (98516)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 98516 (Lacey, 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 Lacey, WA (98516)?
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Market Analysis: 98516 Lacey
The 98516 ZIP covers a section of Lacey that demands careful diligence. Prices near $582K look accessible, but the work to make a deal cash flow is real.
Distressed markets are won on execution, not on spreadsheets. ZIP 98516 sits at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
ZIP 98516's metrics run below Thurston County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
A notable renter share of 30% in 98516 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategically, 98516 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 Lacey:
Property Strategy for 98516
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $583,793 | $2,320 | 2.9% | +5.2% | $291,896 |
| 3BR | $524,721 | $3,090 | 4.2% | +6.4% | $174,907 |
| 4BR | $608,694 | $3,890 | 4.6% | +6.1% | $152,174 |
| 5BR | $657,079 | — | — | +5.9% | $131,416 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 98516 Compare?
| Metric | 98516 | Lacey | Olympia-Lacey-Tumwater, WA | Washington |
|---|---|---|---|---|
| Home Value | $581,608 | $527,368 | N/A | $591,536 |
| 5-Year CAGR | 2.5% | 2.9% | N/A | 5.9% |
| Avg Rent | $2,245 | $2,207 | N/A | - |
| Cap Rate | 3.0% | 3.3% | - | - |
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 98516 (Lacey, WA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $581,608 |
| Monthly Rent | $2,245 |
| Price-to-Rent | 21.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.6% |
| Cap Rate | 3.0% |
| 5-Year IRR | 5.5% |
📈 Home Appreciation
| 1-Year | +1.3% ▲ |
| 3-Year CAGR | +1.5% ▲ |
| 5-Year CAGR | +2.5% ▲ |
| 10-Year CAGR | +6.5% ▲ |
🏠 Rent Trends
| 1-Year | +4.0% ▲ |
| 3-Year CAGR | +4.0% ▲ |
| 5-Year CAGR | +3.9% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.0%). 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 98516
Population: 28,286
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 98516
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 7,139 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What real estate strategy is ideal for Lacey, WA?
For Lacey, WA, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
How much rent can I charge in Lacey, WA?
Rents in Lacey, WA run near $2,245/mo. Compared with median home prices of $582K that produces solid gross yields for typical rentals.
Do rentals sit vacant long in Lacey, WA?
Expect elevated vacancy in Lacey, WA. Rents at $2,245/mo are absorbed by the tenant base without meaningful lag.
Is Lacey, WA a good market for FHA house hackers?
Lacey, WA is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $582K price point reasonable to enter.
Is Lacey, WA landlord-friendly?
WA ranks as a tenant-protective state for landlord-tenant law. Lacey generally follows the statewide framework, so landlords face reasonable operating rules.
You know 98516 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 98516 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 98516 ranks in Olympia-Lacey-Tumwater, WA
Every ZIP in this metro, ranked. Free.
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