Federal Way home values
Federal Way at a glance
- Zillow’s Home Value Index puts the typical home at $579,800 (Aug 2026), −0.2% over the past 12 months and +12% over five years.
- The Census median home value in Federal Way is about $485,500 — 31% below Washington overall and 43% above the U.S. median.
- Median household income is about $86,000; median rent about $1,760/month.
Federal Way home value trend
Over the 12 months to Aug 2026, typical home values in Federal Way were essentially flat, to about $579,800. That is 1.1 percentage points faster than Washington (−1.3%). Values are 3.1% below their peak of $598,600 in Feb 2025. Over five years the typical home gained $61,500 in value (+12%).
Year-by-year values
| Month | Typical value | Change vs year before |
|---|---|---|
| Aug 2026 | $579,800 | −0.2% |
| Aug 2025 | $581,000 | −0.8% |
| Aug 2024 | $585,400 | +4.0% |
| Aug 2023 | $563,100 | −3.4% |
| Aug 2022 | $582,800 | +12.4% |
| Aug 2021 | $518,300 | +24.5% |
| Aug 2020 | $416,200 | +10.6% |
| Aug 2019 | $376,300 | +2.2% |
| Aug 2018 | $368,200 | +10.9% |
| Aug 2017 | $331,900 | +12.4% |
| Aug 2016 | $295,400 | — |
Source: Zillow Home Value Index (ZHVI), typical value of mid-tier homes, smoothed & seasonally adjusted. Areas with several ZIPs: population-weighted.
About Federal Way
Federal Way is a city in King County, Washington, United States, and part of the Seattle metropolitan area. It is 25 miles (40 km) south of Seattle and had a population was 101,030 at the 2020 census. Federal Way is the 10th most populous city in Washington and the fifth most populous in King County.
Source: en.wikipedia.org (CC BY-SA)
Federal Way home value score
from local value, rent & income
In Federal Way (2 ZIPs), prices are high relative to rents (a low gross yield), and homes are expensive against local incomes.
How the Value Score is built
Computed figures
A transparent value snapshot — computed from U.S. Census ACS (2023) for Federal Way (2 ZIPs): home value, gross rent and household income. It is not a market-timing or appreciation forecast.
Federal Way neighborhoods compared
| Name | Home value | 1-yr | Income | Rent | Price / income |
|---|---|---|---|---|---|
| Campus Drive ZIP 98023 · shared | $546K | −1.2% | $102K | $1,875 | 5.4× |
| Dash Point ZIP 98023 · shared | $546K | −1.2% | $102K | $1,875 | 5.4× |
| Downtown Federal Way city data | $429K | +0.7% | $71K | $1,650 | 6.1× |
| East Campus city data | $429K | +0.7% | $71K | $1,650 | 6.1× |
| Marine Hills ZIP 98063 · shared | — | — | — | — | — |
| Mirror Lake ZIP 98063 · shared | — | — | — | — | — |
| Redondo ZIP 98063 · shared | — | — | — | — | — |
| Steel Lake city data | $429K | +0.7% | $71K | $1,650 | 6.1× |
| Twin Lakes ZIP 98023 · shared | $546K | −1.2% | $102K | $1,875 | 5.4× |
| West Campus city data | $429K | +0.7% | $71K | $1,650 | 6.1× |
Home value, income and rent: Census ACS medians; 1-yr: Zillow ZHVI change over 12 months. Tap a column heading to sort.
Federal Way vs Washington and the U.S.
| Federal Way | Washington | U.S. | |
|---|---|---|---|
| Typical value (Zillow, Aug 2026) | $579,800 | $733,800 | — |
| 1-year change | −0.2% | −1.3% | — |
| 5-year change | +12% | +8% | — |
| Median home value (Census) | $485,500 | $706,000 | $340,200 |
| Median household income | $86,000 | $107,100 | $78,500 |
| Median gross rent | $1,760/mo | $1,807/mo | $1,406/mo |
| Price-to-income ratio | 5.6× | 6.6× | 4.3× |
| Gross rental yield | 4.4% | 3.1% | 5.0% |
| Rent as share of income | 25% | 20% | 21% |
| Mortgage payment* | $2,455/mo | $3,570/mo | $1,720/mo |
Census figures: U.S. Census Bureau ACS 5-year estimates; areas spanning several ZIPs use population-weighted averages of ZIP medians, and city/state columns cover the ZIPs of the places listed on this site. Zillow: ZHVI. *Principal & interest on the Census median value, 20% down, 6.5% fixed, 30 years.
What it costs to buy a home in Federal Way
At today’s typical value of $579,800 (Zillow, Aug 2026), a buyer putting 20% down ($115,960) and financing the rest at 6.5% over 30 years would pay about $2,932 a month in principal and interest — 41% of the median household income here. That is well above the common 28% guideline, so buying here typically takes an above-median income, a larger down payment or existing equity. The median rent is $1,760/month, so owning costs roughly 67% more per month than renting, before taxes, insurance and upkeep — the trade-off is building equity.
Estimate only: excludes property tax, insurance, HOA and PMI, which vary by property. Incomes and rents are the latest Census (ACS 2023) figures. Run your own numbers in the estimator below.
What this means for buyers, sellers and investors in Federal Way
Buyers
At 5.6× local income, this is a premium market; expect competition for the few homes at the lower end of the range.
Sellers
Values are down 0.2% on the year, so price to today’s market rather than last year’s peak — and get a home-specific estimate: condition and size move the number more than the area average.
Investors
A gross rental yield of 4.4% is low — this is an appreciation play rather than a cash-flow market.
Federal Way real estate FAQ
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Estimates are informational only and are not an appraisal.
Other cities in Washington
About this data
Data last updated: September 2026.
Current values and trends use the Zillow Home Value Index (ZHVI) — the typical value of mid-tier homes, smoothed and seasonally adjusted — through Aug 2026. It is refreshed monthly.
Median values, incomes, rents, housing stock and commutes come from the U.S. Census Bureau’s American Community Survey (ACS) 5-year estimates at ZIP Code Tabulation Area level. City and state figures are population-weighted averages of their ZIPs.
The Value Score (0–10) blends gross rental yield and price-to-income affordability. It is a value snapshot, not a forecast.
Mortgage figures assume 20% down and a 6.5% fixed 30-year loan, principal and interest only.
These are area-level statistics, not an appraisal of any individual property, and not financial advice.
Sources: U.S. Census ACS · Zillow ZHVI.