Home Values in Federal Way, Washington — 2026 Market Report
Updated March 2026 | Balanced Market | +4.5% YoY
The median home value in Federal Way, Washington is $465,000 as of March 2026, which is above the national median of $400,000. Home values in Federal Way have increased by 4.5% over the past year and 24.6% over the last five years. With a population of 99,037 and a median household income of $62,250, the price-to-income ratio stands at 7.5x, making Federal Way affordable for the average household.
Federal Way Housing Market Conditions
| Metric | Federal Way | National Avg |
|---|---|---|
| Median Home Value | $465,000 | $400,000 |
| YoY Appreciation | +4.5% | +3.8% |
| 5-Year Appreciation | +24.6% | +22.4% |
| Price per Sq Ft | $235 | $222 |
| Days on Market | 49 days | 45 days |
| Months of Supply | 3.6 | 3.5 |
| List-to-Sale Ratio | 96.4% | 98.5% |
| Monthly Homes Sold | 97 | — |
| Foreclosure Rate | 0.46% | 0.3% |
Home Value Trends in Federal Way
A homeowner who purchased at the median price of $373,194 five years ago in Federal Way would have gained approximately $91,806 in equity, representing a 24.6% return on investment. Over the past year alone, the typical homeowner gained $20,024 in home equity.
Affordability in Federal Way, WA
With a median household income of $62,250 and a median home price of $465,000, the price-to-income ratio in Federal Way is 7.5x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $3,194 compared to estimated monthly ownership costs of $2,569 gives a rent-vs-buy ratio of 0.80. In Federal Way, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Federal Way
The effective property tax rate in Washington is 0.93%. On a home valued at $465,000, the estimated annual property tax bill is $4,325, or approximately $360/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Federal Way is 108.5 (100 = national average), indicating living costs are near the national average.
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Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Federal Way, WA?
The median home value in Federal Way, Washington is $465,000 as of March 2026. Home values have changed +4.5% over the past year, with a 5-year appreciation of 24.6%.
Is Federal Way a buyer's or seller's market?
Federal Way is currently a balanced market with 3.6 months of housing supply. Homes spend an average of 49 days on market, and the list-to-sale price ratio is 96.4%. Supply and demand are relatively balanced.
Are home values going up in Federal Way?
Yes, home values in Federal Way have increased by 4.5% over the past year. The 5-year appreciation rate is 24.6%, meaning a home worth $373,194 five years ago is now worth $465,000.
Is it better to rent or buy in Federal Way?
The average monthly rent in Federal Way is $3,194, while estimated monthly homeownership costs are approximately $2,569. The price-to-rent ratio is 12.1. Based on current conditions, buying may be more cost-effective than renting in this market.
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Disclaimer: Home value data for Federal Way, Washington is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.