Cap Rate in Seattle, WA

2026 Market Overview for Real Estate Investors

Avg Cap Rate

3.8%

#47 of 50 markets

Median Home Price

$720,000

Purchase price

Median Monthly Rent

$2,200

$26,400/yr gross

Rent-to-Price Ratio

0.31%

Below 1% rule

Cap Rate Rating

Low

Below average return. Common in high-appreciation markets. You are betting on property value growth, not cash flow.

Market Snapshot

Population	749,256
5-Year Population Growth	+5.0%
Median Household Income	$105,000
Vacancy Rate	5.0%
Property Tax Rate	0.92%($6,624/yr)

Investor Takeaway

Seattle offers premium tenant quality with some of the highest incomes in the US. No state income tax benefits investors, but the high entry price and tenant-friendly laws limit cash-flow potential.

Quick Math

Estimated annual numbers for a median-priced property in Seattle, WA before financing:

Annual Gross Rent$26,400

Less Vacancy (5.0%)($1,320)

Less Property Tax (0.92%)($6,624)

Less Est. Insurance + Maintenance($14,400)

Estimated NOI$4,056

Implied Cap Rate0.6%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.