Real Estate Investing in Underwood, Washington (98651)
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Should you buy in 98651 (Underwood, WA)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 43.4 — hard to cash-flow at these prices.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Underwood, WA (98651)?
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Market Analysis: 98651 Underwood
Investors eyeing 98651 need to respect the fundamentals at play. Home values of $843K come alongside slower price movement and elevated management overhead.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $843K asset, 98651 is the wrong submarket. If the plan prices in friction, the yield can still work.
Nearby ZIPs in Underwood have seen price recovery that 98651 has not matched. Skamania County data supports the view that the spread is structural rather than temporary.
Demographically, 98651 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
New investors are better served looking at Underwood's stable or hybrid ZIPs before stepping into 98651. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Underwood:
Market Trends
Home Value History (with trend line)
📊 How Does 98651 Compare?
| Metric | 98651 | Underwood | Washington |
|---|---|---|---|
| Home Value | $843,209 | $843,209 | $591,536 |
| 5-Year CAGR | 3.1% | 3.1% | 5.9% |
| Avg Rent | $1,620 | $1,620 | - |
| Cap Rate | 1.5% | 1.5% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 98651 (Underwood, WA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $843,209 |
| Monthly Rent | $1,620 |
| Price-to-Rent | 43.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.3% |
| Cap Rate | 1.5% |
| 5-Year IRR | 4.6% |
📈 Home Appreciation
| 1-Year | +1.5% ▲ |
| 3-Year CAGR | +2.4% ▲ |
| 5-Year CAGR | +3.1% ▲ |
| 10-Year CAGR | +7.3% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (1.5%). 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 98651
Population: 935
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
Frequently Asked Questions
Are eviction rules reasonable in Underwood, WA?
Underwood, WA falls under WA landlord-tenant law, which is tenant-protective. That backdrop makes day-to-day property management reasonable.
What is the tenant pool like in Underwood, WA?
The tenant pool in Underwood, WA is solid, supported by local employment and population fundamentals. Rents of $1,620/mo are well-absorbed by the market.
Is Underwood, WA better for rentals, flips, or BRRRR?
For Underwood, WA, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
Is Underwood, WA a good market for buy-and-hold investors?
Investors tracking Underwood, WA will find a 2.0/5 rating supported by $843K median home values and $1,620/mo rents. That profile suits long-term holders targeting even-keeled returns.
What is the typical rental rate in Underwood, WA?
Investors in Underwood, WA typically see rents near $1,620/mo per month against $843K home values - a solid setup for rental cash flow.
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