Federal Way, WA—98003
Real Estate Data & Market Trends
Key Metrics at a Glance
Other Zip Codes in Federal Way, WA
Home Price Trends — Federal Way, WA
As of Oct '25, the median home price in Federal Way, WA is $549,000, with a year-over-year change of -1.1%. This indicates that home prices in Federal Way, WA are decreasing. According to Zillow, the 1-year price projection is 0.0%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $549,000 | -1.1% |
| Single Family | $601,000 | -1.3% |
| Condos | $273,000 | -5.9% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | $212,000 | -6.6% |
2 Bed | $292,000 | -5.5% |
3 Bed | $542,000 | -0.9% |
4 Bed | $669,000 | -1.5% |
| 5 Bed | $744,000 | -1.3% |
% of Housing Stock
Rental Trends — Federal Way, WA
As of July '25, Rentcast reports the average rent in Federal Way, WA is $2,020, with a year-over-year rent change of -10.2%. Per bedroom, the median rent as of July '25 in Federal Way, WA is studios: $1,190, 1-bedrooms: $1,470, 2-bedrooms: $1,890, 3-bedrooms: $2,820, 4-bedrooms: $3,210. The most common rental property sizes in Federal Way, WA are 2-bedroom and 1-bedroom, accounting for 36.8% and 35.9% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,690 | $2,020 |
| Studio Rent | $1,100 | $1,190 |
| 1 Bed Rent | $1,500 | $1,470 |
| 2 Bed Rent | $1,800 | $1,890 |
| 3 Bed Rent | $2,700 | $2,820 |
| 4 Bed Rent | $3,200 | $3,210 |
% of Rental Stock
Property Listings — Federal Way, WA
As of Oct '25, Realtor.com reports that the median days on market for a home in Federal Way, WA is 61. This is a increase of 15.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 23.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $502,000 | 9.0% |
Listing Count | 106 | 12.0% |
| Listings as % of Homes | 0.3% | 12.0% |
Days on Market | 61 | 15.0% |
Demographics — Federal Way, WA
As of the latest ACS Survey released in 2023, Federal Way, WA has a population of 52,200, which has increased by 4.7% over the past 5 years. Federal Way, WA is a moderately popular place for families, as children make up 24.4% of the population. The area has a moderately educated workforce, with 27.7% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 9.2% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 52,200 | 4.7% |
% Under 18 | 24.4% | 2.1% |
% Seniors | 15.3% | 12.5% |
% WFH | 9.2% | 119.0% |
% w/ College Degree | 27.7% | 8.6% |
As of the latest ACS Survey released in 2023, Federal Way, WA is a predominantly white area, with 31.8% of the population identifying as white. The white population has shrunk by 25.9% in the last 5 years. The second most common race or ethnicity in Federal Way, WA is hispanic, making up 22.6% of the population. Foreign-born residents account for 32.0% of the population in Federal Way, WA, and this percentage has increased by 14.7% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 31.8% | -25.9% |
% Black | 19.6% | 33.3% |
% Hispanic | 22.6% | 3.7% |
% Asian | 13.5% | 10.7% |
% Foreign Born | 32.0% | 14.7% |
Mortgage and Risk — Federal Way, WA
According to HUD data as of 2023, there were 635 mortgage originations in Federal Way, WA, of which 83.0% of loans were conventional mortgages. The average loan-to-value was 64.0%, with 32.0% above 90% LTV (very high). This implies large mortgage risk in Federal Way, WA. Investor activity is low, as 2.0% of loans were by investors. 8.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 635 |
% Conventional Loans | 83.0% |
% Government Loans | 17.0% |
% Investor Loans | 2.0% |
% Second Loans | 0.0% |
% Cash Out Refinance | 8.0% |
Loan Activity
Rentals and Section 8 — Federal Way, WA
As of 2024, the percent of homes in Federal Way, WA under the Section 8 program is 10.4%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. In Federal Way, WA, all tracked home sizes have HUD payment amounts above market rent, suggesting strong Section 8 opportunity across the board.
Section 8 Market Size
Total Units under HUD | 1,142 |
Total Units Section 8 | 1,001 |
% Rentals under Section 8 | 10.4% |
% Occupied Section 8 | 100.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $550 | $1,500 | $2,050 |
| 2 Bedroom | $590 | $1,800 | $2,390 |
| 3 Bedroom | $460 | $2,700 | $3,160 |
| 4 Bedroom | $480 | $3,200 | $3,680 |
Affordability — Federal Way, WA
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 7.4 |
| Median Home Price | $549,000 |
| Median Household Income | $70,800 |