Federal Way, WA—98023
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 $604,000, with a year-over-year change of -0.7%. This indicates that home prices in Federal Way, WA are flat. According to Zillow, the 1-year price projection is -0.2%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $604,000 | -0.7% |
| Single Family | $619,000 | -1.0% |
| Condos | $307,000 | -5.5% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | $252,000 | -6.3% |
2 Bed | $329,000 | -4.9% |
3 Bed | $565,000 | -0.9% |
4 Bed | $675,000 | -1.0% |
| 5 Bed | $755,000 | -1.4% |
% of Housing Stock
Rental Trends — Federal Way, WA
As of July '25, Rentcast reports the average rent in Federal Way, WA is $2,240, with a year-over-year rent change of -17.9%. Per bedroom, the median rent as of July '25 in Federal Way, WA is studios: $1,360, 1-bedrooms: $1,470, 2-bedrooms: $1,990, 3-bedrooms: $2,790, 4-bedrooms: $3,200. The most common rental property sizes in Federal Way, WA are 2-bedroom and 3-bedroom, accounting for 34.1% and 31.5% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $2,000 | $2,240 |
| Studio Rent | $1,410 | $1,360 |
| 1 Bed Rent | $1,490 | $1,470 |
| 2 Bed Rent | $2,000 | $1,990 |
| 3 Bed Rent | $2,840 | $2,790 |
| 4 Bed Rent | $3,400 | $3,200 |
% 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 51. This is a increase of 1.0% from last year, suggesting that homes are sitting on the market about the same amount of time than last year. The percentage of listed homes with a reduced price is 22.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $678,000 | 5.0% |
Listing Count | 128 | -2.0% |
| Listings as % of Homes | 0.3% | -2.0% |
Days on Market | 51 | 1.0% |
Demographics — Federal Way, WA
As of the latest ACS Survey released in 2023, Federal Way, WA has a population of 49,600, which has decreased by -1.4% over the past 5 years. Federal Way, WA is a moderately popular place for families, as children make up 21.5% of the population. The area has a moderately educated workforce, with 34.1% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 15.8% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 49,600 | -1.4% |
% Under 18 | 21.5% | -8.9% |
% Seniors | 13.9% | 12.1% |
% WFH | 15.8% | 236.2% |
% w/ College Degree | 34.1% | 15.2% |
As of the latest ACS Survey released in 2023, Federal Way, WA is a predominantly white area, with 41.0% of the population identifying as white. The white population has shrunk by 19.0% in the last 5 years. The second most common race or ethnicity in Federal Way, WA is hispanic, making up 15.5% of the population. Foreign-born residents account for 24.5% of the population in Federal Way, WA, and this percentage has increased by 19.5% 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 | 41.0% | -19.0% |
% Black | 15.1% | 39.8% |
% Hispanic | 15.5% | 0.0% |
% Asian | 14.7% | 5.8% |
% Foreign Born | 24.5% | 19.5% |
Mortgage and Risk — Federal Way, WA
According to HUD data as of 2023, there were 733 mortgage originations in Federal Way, WA, of which 82.0% of loans were conventional mortgages. The average loan-to-value was 57.0%, with 28.0% above 90% LTV (very high). This implies large mortgage risk in Federal Way, WA. Investor activity is low, as 1.0% of loans were by investors. 10.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 733 |
% Conventional Loans | 82.0% |
% Government Loans | 18.0% |
% Investor Loans | 1.0% |
% Second Loans | 0.0% |
% Cash Out Refinance | 10.0% |
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 8.2%. 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 | 494 |
Total Units Section 8 | 494 |
% Rentals under Section 8 | 8.2% |
% Occupied Section 8 | 100.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $670 | $1,490 | $2,160 |
| 2 Bedroom | $510 | $2,000 | $2,510 |
| 3 Bedroom | $470 | $2,840 | $3,310 |
| 4 Bedroom | $460 | $3,400 | $3,860 |
Affordability — Federal Way, WA
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 5.7 |
| Median Home Price | $604,000 |
| Median Household Income | $102,000 |