Rent vs buy in Federal Way, WA
In Federal Way, Washington, the typical rent is $1,944 /mo and the typical home costs $581,567.
Renting comes out ahead by $61k over 7 years
The typical rent and home value for Federal Way's market, with 20% down and the mortgage rate today. You reach break-even in year 15.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. The stamp changes when you change a number.
- Lead for renting
- $61k after 7 years
- Break-even point
- The 15th year when owning catches up
- Actual cost of ownership
- $4,972 each month year 1, against $1,944 rent
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Is renting or buying cheaper in Federal Way?
Once you count the money you get back when you sell, renting saves $60,778 over 7 years. For the first 14 years, renting costs less. In year 15, owning catches up.
Rent Ownership. Net cost so far, broken down year by year.
Federal Way: average rent compared with mortgage payment
Rent and mortgage don't tell the whole story. Here are all monthly costs for year 1, using Federal Way's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,944 | All of it, every month |
| Mortgage payment | $3,171 | $2,795 of it is interest in year 1 |
| Property tax | $412 | 0.85% of the value a year |
| Insurance | $93 | Census median for the city |
| Upkeep | $485 | 1% of the value a year |
| Owning, cash out | $4,160 | $376 of it builds equity |
| Lost return on the down payment | $945 | The cash's yearly return at 8.3% |
| Buying costs, spread out | $242 | 3.5% of the price over 7 years |
| True cost of owning | $4,972 | Cash out minus the equity part, plus both lines above |
Federal Way verdict explained by the numbers
- Typical home valueZillow ZHVI, September 2026
- $581,567
- Typical rentZillow ZORI, September 2026
- $1,944 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Washington, 1995 to 2025
- 5.3% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Federal Way
- 0.85% of value
- Home insuranceCensus ACS 2020-2024, Federal Way
- $93 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
In Federal Way, what would flip the result?
The 7-year Federal Way verdict changes at each line shown, with all other factors left as they are.
When renting comes out ahead
- Home prices climb by less than 6.5% a year. We apply Washington's long-run rate of 5.3%.
- The mortgage rate remains above 5.38%.
- A similar home rents for under $2,600 a month, and the typical rent here is $1,944.
- You leave before year 15.
Buying comes out ahead under these conditions
- Home price growth runs above 6.5% each year.
- You secure a mortgage rate under 5.38% (today's is 7.24%).
- The same home would rent for over $2,600 a month.
- You remain there for 15 years or more.
How Federal Way compares with the other 812 cities
| Measure | Federal Way | Median city |
|---|---|---|
| Typical home value | $581,567 | $422,451 |
| Typical rent | $1,944 /mo | $1,837 /mo |
| Price-to-rent ratio | 24.9 (#144 of 813) | 18.5 |
| Home prices, last 10 years | 6.9% a year | 6.2% a year |
| Rents, last 5 years | 2.3% a year | 4% a year |
| Property tax | 0.85% | 0.87% |
| Households that rent | 45% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
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