ZIP Code · WA

ZIP 98003

Part of Federal Way, WA

Pop. 51,619·King County·140th most expensive ZIP in Washington

Median rent (all units)

$1,894/mo

Year-over-Year

+4.5%

Month-over-Month

+0.5%

vs US Median

-$38

Reported rents

Rising (Monthly)

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Most AffordableMost Expensive

ZIP 98003 · $1,894

More expensive than 55% of US ZIP codes · National median $1,932/mo

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Medians by bedroom

Rent by unit size

Studio

$1,820

1 BR

$1,880

2 BR

$2,190

3 BR

$2,870

4 BR+

$3,370

Research median

$2,190/mo

Bedroom estimates are gross rents that include essential utilities (electricity, water, gas, sewer, trash).

Rent trends

12-month history

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Last updated: October 17, 2026

From the history

What the numbers show

Cheapest month to sign

February. Asking rents in ZIP 98003 usually run 1% below trend in February and 1.2% above it in August, about $42 a month apart at today's median. Based on 7 years of data.

Compared with the peak

Rent in ZIP 98003 is at its highest level since Zillow's records here began in October 2018.

Past year vs. the rest of Washington

Rent in ZIP 98003 changed +4.5% over the year to September 2026. Across the 193 Washington ZIP codes Zillow tracks, the typical change was +2.5%.

Since before the pandemic

Rent in ZIP 98003 is 33% higher than in March 2020. Across the US, rent is up 37.3% over the same stretch.

Recent direction

Rent has risen 5 months in a row, and rose in 10 of the last 12 months.

What a typical income covers

30% of the median household income ($75,319) is $1,883 a month. That covers HUD's Fair Market Rent for up to a 1-bedroom ($1,880); a 2-bedroom is $2,190.

Cheaper nearby

ZIP 98403, 7 miles away, rents for 12% less ($1,658/mo), about $2,800 a year in savings.

From Zillow's monthly rent index (ZORI) for ZIP 98003. The seasonal pattern compares Zillow’s seasonally adjusted and unadjusted series. Income is the Census median household income (5-year estimates). Fair Market Rents are HUD’s, which include utilities.

Annual cost

$22,728/yr

At $1,894/mo median

Location

CityFederal Way

StateWA

CountyKing County

Rent Market Meter

Landlord's Market

Renter's MarketBalancedLandlord's Market

Rents are climbing (4.5% YoY), so leverage tilts toward landlords. Act sooner rather than later.

Based on rent-price momentum (+4.5% YoY, +0.5% MoM), not inventory.

Demographics

Who lives here

ZIP 98003 (Federal Way, WA) is roughly split between renters and owners, 27.6% of residents hold a bachelor's degree or higher.

Population

51,619

Median income

$75,319

Median age

35.7

Renters

53.1%

Age distribution

24.8%

24.4%

23.9%

15.4%

Under 1824.8%

18–3424.4%

35–5423.9%

55–6411.4%

65+15.4%

Gender

49.9%

50.1%

Male49.9%

Female50.1%

Race & ethnicity

32.5%

20.5%

24%

13.6%

White32.5%

Black20.5%

Hispanic24%

Asian13.6%

Other9.4%

Education (25+)

13.6%

28%

30.7%

27.6%

No HS diploma13.6%

HS diploma28%

Some college30.7%

Bachelor's+27.6%

Housing tenure

46.9%

53.1%

Owner46.9%

Renter53.1%

Source: U.S. Census Bureau · ACS 2024 5-Year Estimates

2021 vs 2026

How ZIP 98003 in Federal Way, WA has changed in 5 years

Rent

$1,495 → $1,894

up 26.7%

Income

$63,289 → $75,319

up 19.0%

Population

50,501 → 51,619

up 2.2%

Renter share

52.7% → 53.1%

+0.4 pts

Bachelor's+

27.2% → 27.6%

+0.4 pts

Compared with 2021, rent in ZIP 98003 in Federal Way, WA has climbed by $399 per month, settling near $1,894 after starting the period at $1,495. Household income in the area moved from $63,289 to $75,319 across the same window, up 19.0% versus 2021. Rent outpaced income growth by roughly 7.7 percentage points, which means renters are spending a larger slice of each paycheck on housing than they did in 2021. Headcount in the area went from 50,501 to 51,619 between 2021 and 2024, a 2.2% change. Reading these numbers side by side helps frame whether current listings in ZIP 98003 in Federal Way, WA look reasonable against where the market sat half a decade ago.

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About renting in ZIP 98003

Last updated: October 17, 2026

ZIP code 98003 covers Federal Way, WA. The median rent here is $1,894/mo as of October 2026. A 1-bedroom rents for a median of $1,880/mo. A 2-bedroom rents for a median of $2,190/mo.

At 30% of local median household income ($75,319/yr), ZIP 98003 ranks as moderate compared to the national benchmark of 30%. Rents have increased 4.5% over the past year.

FAQ

Frequently asked questions

How much income do you need to rent in ZIP 98003?

To keep rent at or below 30% of gross income, you would need to earn at least $76,000/year (about $37/hour full-time) to afford the median rent of $1,894/mo in ZIP 98003. The local median household income is $75,319/yr, so the typical household falls short of that bar.

Is rent going up or down in ZIP 98003?

Rent in ZIP 98003 has risen 4.5% over the past year as of September 2026. That is the highest level since Zillow's records here began in October 2018.

When is the cheapest time to rent in ZIP 98003?

Asking rents in ZIP 98003 are usually lowest in February, about 1% below their yearly trend, and highest in August, about 1.2% above it. At today's median that is a gap of roughly $42 a month. This pattern comes from 7 years of Zillow rent data.

How does ZIP 98003 compare to other ZIPs in Washington?

ZIP 98003 is one of the more affordable among Washington ZIP codes for rent, ranking #140 of 207 at $1,894/mo. Over the year to September 2026, rent in ZIP 98003 changed +4.5%, against a typical +2.5% across the 193 Washington ZIP codes Zillow tracks.