The story of this market
The typical home in ZIP 98003 sells for about $585,000, or $350 per square foot.
Prices are roughly flat from a year ago (+0.8%), a market in balance. Homes take about 25 days to sell, which is fast. HUD's fair market rent for a two-bedroom is $1,723 a month.
ZIP 98003 — Federal Way
The 98003 housing market is showing signs of stabilization with modest price growth and competitive demand. While inventory remains tight, the market is benefiting from its relative affordability compared to the broader Seattle metro area. Future growth is expected to be driven by transit-oriented development and infrastructure improvements.
This ZIP is well-suited for commuters seeking a balance between Seattle and Tacoma, as well as families looking for more affordable housing options compared to the urban core. It also attracts investors due to the consistent demand for rental housing.
Median prices moved up 0.8% year over year.
Homes spend a median of 25 days on market with 3.2 months of supply — a fast-moving market.
22% of listings have cut prices · homes sell at 98.5% of asking — demand is running ahead of supply.
no recorded foreclosure-ledger notices (0.0 per 10,000 residents) · unemployment 6.9% · poverty 15.7% — a mixed stability profile.
Researched annual trajectory for this ZIP, from published historical series
Solid: researched ten-year history · dotted: 1 / 3 / 5-year projection extended from the historical 7.1%/yr trend — a deterministic estimate, not a published forecast or guarantee.
Median annual property tax paid on this ZIP's residential parcels
Solid: researched ten-year history · dotted: 1 / 3 / 5-year projection extended from the historical 3.8%/yr trend — a deterministic estimate, not a published forecast or guarantee.
versus the prior ACS vintage
net influx — more people moved in than out
ZCTA 98003, King County WA
ACS 2024 5-year estimates. Aggregate published statistics for this ZIP — never individual records, and never an attribute of any individual property or resident.
Crime rates in Federal Way are generally higher than the national average, with property crime being the most frequently reported issue. Local law enforcement maintains active community outreach programs to address regional safety concerns.
Schools in the 98003 area are primarily served by the Federal Way Public Schools district, which offers a diverse range of academic and extracurricular programs. Performance ratings vary by individual school, with several institutions receiving average marks on state accountability metrics.
The area faces moderate risks related to windstorms and occasional heavy rainfall, which can lead to localized drainage issues. Property insurance premiums are influenced by regional seismic activity risks common to the Puget Sound area.
Federal Way serves as a significant suburban employment hub with a mix of retail, healthcare, and professional services. Development momentum is focused on the revitalization of the city center and transit-oriented projects near the future light rail extension.
Property taxes are assessed by King County based on the fair market value of the property, with rates determined by local levies and school district requirements. There are no state income taxes in Washington, and homeowners may qualify for senior or disabled person exemptions.
Residents typically rely on I-5 for commuting north to Seattle or south to Tacoma, with travel times heavily dependent on peak-hour traffic congestion. Public transit options include regional bus services, with future connectivity improvements planned via the Sound Transit light rail expansion.
The area features extensive outdoor amenities including Dash Point State Park, Steel Lake Park, and various community trails. Shopping and dining are concentrated along the Pacific Highway corridor and the Commons at Federal Way.
The rental market is characterized by high demand due to the area's affordability relative to Seattle, resulting in low vacancy rates. There is a significant presence of multi-family apartment complexes and some investor-owned single-family rentals.
The local economy is anchored by retail, healthcare, and public sector employment. Major employers include the Federal Way Public Schools and various regional distribution and logistics centers.
The area is served by a network of arterial roads and is positioned along the I-5 corridor. Public transportation is provided by King County Metro and Sound Transit, with ongoing infrastructure investments.
Development is focused on high-density residential and mixed-use projects near the future light rail station. City planning emphasizes transit-oriented development to support population growth.
Parcels are subject to various special districts including fire protection, water and sewer districts, and the Federal Way Public Schools district.
Property insurance markets are stable but sensitive to regional wildfire and seismic risk assessments. Premiums are generally consistent with broader King County trends.
Data retrieved from data.census.gov ZCTA-level tables.
Public schools whose reported address is in this area (NCES). Not attendance boundaries — schools that serve residents may sit outside it. Check the district's address locator for assignment.
- Wild Waves Theme and Water Park3.93 mi
- Sky Zone Trampoline Park4.19.9 mi
- Tukwila Family Fun Center & Bullwinkle's Restaurant4.310.9 mi
- Round1 Bowling & Arcade410.4 mi
- Round1 Bowling & Arcade - Puyallup3.811.1 mi
- T-Mobile Park4.719 mi
- Lumen Field4.619.3 mi
- Washington State Fair Event Center4.39.2 mi
- Tacoma Dome4.17.4 mi
- Topgolf Renton4.113.5 mi
- Westfield Southcenter4.410.3 mi
- Washington State Fair Event Center4.39.2 mi
- Point Defiance Zoo & Aquarium4.59.4 mi
- Point Defiance Park4.79.6 mi
- AMC Southcenter 164.310.2 mi
- The Museum of Flight4.814 mi
- Museum of Glass4.57.2 mi
- Smith Tower4.619.7 mi
- LeMay - America’s Car Museum4.77.5 mi
- Union Station4.319.5 mi
- Point Defiance Park4.79.6 mi
- Dash Point State Park4.53.9 mi
- Point Ruston4.78.6 mi
- Dune Peninsula at Point Defiance Park4.88.8 mi
- North Lake Tapps Park4.58.9 mi
- Mercer Island Beach Club4.515.3 mi
- Tacoma Yacht Club4.78.9 mi
- Point Defiance Marina4.79.1 mi
- City of Des Moines Marina4.55.9 mi
- Foss Harbor Marina4.66.8 mi
- Washington National Golf Club4.18.1 mi
- Meadow Park Golf Course4.512.3 mi
- Riverbend Golf Complex4.25.2 mi
- Druid's Glen Golf Club4.112.1 mi
- Auburn Golf Course4.45.6 mi
- Westfield Southcenter4.410.3 mi
- Tacoma Mall4.19.8 mi
- The Outlet Collection Seattle4.23.9 mi
- WinCo Foods4.48.3 mi
- South Hill Mall4.111.1 mi
- Seattle-Tacoma International Airport (SEA) Parking Garage3.48.8 mi
- King County International Airport - Boeing Field4.515.3 mi
- Kenmore Air - Lake Union4.621.6 mi
- Kenmore Air - Lake Washington4.530.6 mi
- The Club SEA2.78.5 mi
Theme parks, venues, golf, airports, museums, water and shopping across the area from Google Maps, ranked by popularity within the radius shown.
Large waterfront park with beach access and hiking trails.
Popular community park with a lake, playground, and sports fields.
Major regional shopping mall serving the local community.
Key-figure check: no independent anchor retained yet — first-researched cycles establish the anchor baseline this pass.