Federal Way, WA

Very High · 136

Washington · Population 99,232 · Updated March 2026

$1,738
Median Rent / Month
$82,144
Median Income
$499,600
Median Home Value
$1,781
Owner Costs / Month

Affordability

How far your income goes in Federal Way

25.4%
Rent-to-Income Ratio
Moderate
Rent takes 25-35% of median income — moderate affordability.

Tax Burden in Washington

State-level tax rates that affect your costs

0%
Income Tax (Top Rate)
6.5%
Sales Tax
0.92%
Property Tax Rate

Estimated Annual Costs

$20,856
Annual Rent
$0
State Income Tax
$4,596
Property Tax (est.)

Cost of Living Overview

Federal Way has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 136 (where 100 equals the national median), Federal Way residents can expect to pay median rent of $1,738/month while earning a median household income of $82,144/year.

The median home value in Federal Way, WA is $499,600, with typical monthly owner costs around $1,781 including mortgage, insurance, and taxes. With a rent-to-income ratio of 25.4%, Federal Way falls within the generally affordable range, though it's approaching the 30% burden threshold.

Washington has no state income tax, which can represent significant savings compared to high-tax states. Combined with a 6.5% sales tax rate and 0.92% effective property tax rate, the overall tax environment helps keep costs manageable in Federal Way.

Frequently Asked Questions

Common questions about living costs in Federal Way

What is the cost of living in Federal Way, WA?
The cost of living index in Federal Way, WA is 136 (US average = 100). Median monthly rent is $1,738, median household income is $82,144/year, and the median home value is $499,600.
Is Federal Way, WA affordable?
No, Federal Way is more expensive than the national average with a cost index of 136. The rent-to-income ratio is 25.4%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Federal Way, WA?
The median gross rent in Federal Way, WA is $1,738 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $20,856.
What is the median household income in Federal Way?
The median household income in Federal Way, WA is $82,144 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Washington?
Washington has a top income tax rate of 0%, a sales tax of 6.5%, and an effective property tax rate of 0.92%. Notably, there is no state income tax.