ZIP 98040
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Bedroom estimates are gross rents that include essential utilities (electricity, water, gas, sewer, trash).
12-month history
Last updated: October 17, 2026
What the numbers show
December. Asking rents in ZIP 98040 usually run 2.3% below trend in December and 2.6% above it in July, about $137 a month apart at today's median. Based on 8 years of data.
Rent in ZIP 98040 is at its highest level since Zillow's records here began in February 2018.
Rent in ZIP 98040 changed +6.0% over the year to September 2026. Across the 193 Washington ZIP codes Zillow tracks, the typical change was +2.5%.
From 2019 to 2024, rent in ZIP 98040 rose 25.5% while median household income rose 48.5% ($147,566 to $219,069). Income kept ahead of rent.
Rent in ZIP 98040 is 33% higher than in March 2020. Across the US, rent is up 37.3% over the same stretch.
Rent has risen 5 months in a row, and rose in 8 of the last 12 months.
30% of the median household income ($219,069) is $5,477 a month. That covers HUD's Fair Market Rent for up to a 4-bedroom ($4,650).
ZIP 98118, 3 miles away, rents for 29% less ($1,983/mo), about $9,800 a year in savings.
From Zillow's monthly rent index (ZORI) for ZIP 98040. 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.
Who lives here
ZIP 98040 (Mercer Island, WA) is majority owner-occupied, has a large retiree population, has a median income above the national average, 81.4% of residents hold a bachelor's degree or higher.
Source: U.S. Census Bureau · ACS 2024 5-Year Estimates
How ZIP 98040 in Mercer Island, WA has changed in 5 years
Five years ago, renters in ZIP 98040 in Mercer Island, WA paid around $2,072 a month. That figure now sits near $2,796, up 34.9% from the 2021 baseline. On the earnings side, the typical household in ZIP 98040 in Mercer Island, WA now reports about $219,069, up from $170,000 in 2021. Because rent grew faster than wages over the same span, the affordability picture has tightened relative to 2021. Bachelor's-degree-or-higher attainment moved from 77.5% to 81.4% across the same window. For context, the 2021 to 2026 window covers an unusually volatile run for US rents nationally, and ZIP 98040 in Mercer Island, WA reflects that arc in its own way.
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Tips for renters in ZIP 98040
Last updated: October 17, 2026
ZIP code 98040 covers Mercer Island, WA. The median rent here is $2,796/mo as of October 2026. A 1-bedroom rents for a median of $2,590/mo. A 2-bedroom rents for a median of $3,020/mo.
At 15% of local median household income ($219,069/yr), ZIP 98040 ranks as affordable compared to the national benchmark of 30%. Rents have increased 6.0% over the past year.
Frequently asked questions
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How does ZIP 98040 compare to other ZIPs in Washington?
How does ZIP 98040 compare to the rest of Mercer Island?
At $2,796/mo, rent takes ~15% of ZIP 98040's median household income ($219,069/yr). The standard benchmark is 30%.
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