ZIP Code · WA

ZIP 98023

Part of Federal Way, WA

Pop. 50,448·King County·107th most expensive ZIP in Washington

Median rent (all units)

$2,024/mo

Year-over-Year

+2.5%

Month-over-Month

+0.3%

vs US Median

+$92

Reported rents

Stable (Monthly)

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Most AffordableMost Expensive

ZIP 98023 · $2,024

More expensive than 63% of US ZIP codes · National median $1,932/mo

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Medians by bedroom

Rent by unit size

Studio

$1,920

1 BR

$1,990

2 BR

$2,320

3 BR

$3,040

4 BR+

$3,570

Research median

$2,320/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 98023 usually run 1.2% below trend in February and 1.3% above it in July, about $51 a month apart at today's median. Based on 10 years of data.

Compared with the peak

Rent in ZIP 98023 is 0% below its high of $2,025 in July 2026, at $2,024 as of September 2026.

Past year vs. the rest of Washington

Rent in ZIP 98023 changed +2.5% over the year to September 2026. Across the 193 Washington ZIP codes Zillow tracks, the typical change was +2.5%.

Rent vs. income since 2019

From 2019 to 2024, rent in ZIP 98023 rose 34.8% while median household income rose 32.1% ($79,434 to $104,893). Rent outpaced income.

Since before the pandemic

Rent in ZIP 98023 is 33.4% higher than in March 2020. Across the US, rent is up 37.3% over the same stretch.

Recent direction

Rent rose in 8 of the last 12 months.

What a typical income covers

30% of the median household income ($104,893) is $2,622 a month. That covers HUD's Fair Market Rent for up to a 2-bedroom ($2,320); a 3-bedroom is $3,040.

Cheaper nearby

ZIP 98424, 5 miles away, rents for 11% less ($1,800/mo), about $2,700 a year in savings.

From Zillow's monthly rent index (ZORI) for ZIP 98023. 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

$24,288/yr

At $2,024/mo median

Location

CityFederal Way

StateWA

CountyKing County

Rent Market Meter

Landlord's Market

Renter's MarketBalancedLandlord's Market

Rents are climbing (2.5% YoY), so leverage tilts toward landlords. Act sooner rather than later.

Based on rent-price momentum (+2.5% YoY, +0.3% MoM), not inventory.

Demographics

Who lives here

ZIP 98023 (Federal Way, WA) is majority owner-occupied, has a median income above the national average, 33.9% of residents hold a bachelor's degree or higher.

Population

50,448

Median income

$104,893

Median age

38.6

Renters

34.4%

Age distribution

21.1%

24%

25.6%

14.7%

14.6%

Under 1821.1%

18–3424%

35–5425.6%

55–6414.7%

65+14.6%

Gender

51.9%

48.1%

Male51.9%

Female48.1%

Race & ethnicity

42.4%

14.6%

16%

16.4%

White42.4%

Black14.6%

Hispanic16%

Asian16.4%

Other10.6%

Education (25+)

25.3%

32.8%

33.9%

No HS diploma8%

HS diploma25.3%

Some college32.8%

Bachelor's+33.9%

Housing tenure

65.6%

34.4%

Owner65.6%

Renter34.4%

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

2021 vs 2026

How ZIP 98023 in Federal Way, WA has changed in 5 years

Rent

$1,658 → $2,024

up 22.1%

Income

$87,820 → $104,893

up 19.4%

Population

51,811 → 50,448

down 2.6%

Renter share

36.7% → 34.4%

-2.3 pts

Bachelor's+

31.7% → 33.9%

+2.2 pts

Median age

37.7 → 38.6

+0.9 yrs

Since 2021, the typical rent in ZIP 98023 in Federal Way, WA has climbed from $1,658 to $2,024, a 22.1% change over five years. Census figures show median household income at $104,893 today, compared with $87,820 five years earlier. The population has contracted by 2.6% since 2021, moving from about 51,811 residents to roughly 50,448. Renters now make up 34.4% of households, compared with 36.7% five years ago. College-educated residents now make up 33.9% of adults here, versus 31.7% in 2021. The combined trend lines point to a market that has changed measurably from where it stood in early 2021.

Community

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About renting in ZIP 98023

Last updated: October 17, 2026

ZIP code 98023 covers Federal Way, WA. The median rent here is $2,024/mo as of October 2026. A 1-bedroom rents for a median of $1,990/mo. A 2-bedroom rents for a median of $2,320/mo.

At 23% of local median household income ($104,893/yr), ZIP 98023 ranks as affordable compared to the national benchmark of 30%. Rents have increased 2.5% over the past year.

FAQ

Frequently asked questions

How much income do you need to rent in ZIP 98023?

To keep rent at or below 30% of gross income, you would need to earn at least $81,000/year (about $39/hour full-time) to afford the median rent of $2,024/mo in ZIP 98023. The local median household income is $104,893/yr, so the typical household meets that bar.

Is rent going up or down in ZIP 98023?

Rent in ZIP 98023 has risen 2.5% over the past year as of September 2026. It sits 0% below its high of $2,025 in July 2026.

When is the cheapest time to rent in ZIP 98023?

Asking rents in ZIP 98023 are usually lowest in February, about 1.2% below their yearly trend, and highest in July, about 1.3% above it. At today's median that is a gap of roughly $51 a month. This pattern comes from 10 years of Zillow rent data.

Has rent outpaced income in ZIP 98023?

Yes. From 2019 to 2024, rent in ZIP 98023 rose 34.8% while median household income rose 32.1%, from $79,434 to $104,893. Rent is Zillow's yearly average; income is the Census 5-year estimate for the same years.

How does ZIP 98023 compare to other ZIPs in Washington?

ZIP 98023 is in the middle among Washington ZIP codes for rent, ranking #107 of 207 at $2,024/mo. Over the year to September 2026, rent in ZIP 98023 changed +2.5%, against a typical +2.5% across the 193 Washington ZIP codes Zillow tracks.