Seattle, WA global tech hub with constrained land supply; highest median incomes in the nation support premium prices. This report covers current market conditions, the full investment arithmetic on a median-priced rental, and where Seattle ranks against the 19 other metros tracked here.
Current Market Snapshot
Investment Analysis
With a gross yield of 3.8% and a median price of $745,000, Seattle sits at the lower end of the yield spectrum. A typical 2-bedroom property rents for approximately $2,359/month based on HUD Fair Market Rent data.
The affordability index of 54 suggests housing costs exceed what the median household can comfortably afford — watch for affordability-driven demand moderation.
Market Temperature: Hot
With a median DOM of 22 days and approximately 3,100 active listings and fierce competition, Seattle's market is currently classified as hot. Low inventory is supporting seller leverage; buyers should move decisively on well-priced properties.
The Numbers on a Median-Priced Rental
Buying the median Seattle home at $745,000 with 20% down takes $171,350 in cash — a $149,000 deposit plus roughly $22,350 in closing costs at 3% — and leaves a $596,000 loan. At 7.0% over 30 years that is $3,965/month in principal and interest.
On those assumptions the median Seattle rental produces a 0.72% cap rate and falls roughly $3,521 a month short of covering debt service. Cash-on-cash return on the $171,350 invested is -24.66%, and the debt service coverage ratio is 0.11× — below 1.0×, meaning the property cannot service its own debt at 20% down — this is an appreciation play, not a cash flow one. On a rent basis, you need $6,519 a month to break even — 176% above the $2,359 HUD benchmark.
Rate and Rent Sensitivity
Financing cost dominates the outcome. One percentage point on the mortgage rate moves monthly cash flow by more than a 10% swing in rent does:
| Mortgage Rate | P+I Payment | Monthly Cash Flow |
|---|---|---|
| 6.0% | $3,573/mo | -$3,129/mo |
| 7.0% | $3,965/mo | -$3,521/mo |
| 8.0% | $4,373/mo | -$3,929/mo |
| Rent Scenario | Monthly Rent | Cap Rate | Monthly Cash Flow |
|---|---|---|---|
| HUD FMR − 10% | $2,123/mo | 0.39% | -$3,721/mo |
| HUD FMR | $2,359/mo | 0.72% | -$3,521/mo |
| HUD FMR + 10% | $2,594/mo | 1.04% | -$3,322/mo |
How Seattle Ranks
Among the 20 metros covered here, Seattle is 20th by gross rental yield and 1st most expensive. Its 3.8% yield sits below the 5.15% median of the set, and its $745,000 price sits above the $390,000 median. The price-to-rent ratio is 26.3× and the price-to-income ratio is 7.3× against a median household income of $102,000.
The metros closest to Seattle on gross yield are Denver, CO (4.3%), Salt Lake City, UT (4.4%), Miami, FL (4.5%). If Seattle is on your list, those are the markets whose numbers you should be holding it against — not the national average.
What Has to Be True for Seattle to Work
A median-priced rental here consumes $42,252 a year in cash. That is not automatically a bad deal: the same loan repays $6,054 of principal in year one, so the true first-year drag is about $36,198. To break even on the cash line alone the property has to appreciate 5.67% a year, against the +2.2% the metro has actually posted over the past twelve months. Hold it five years and amortisation alone builds $34,976 of equity — the question is whether you can fund the shortfall for that long without selling at the wrong moment.
Key Data Points
| Metric | Value |
|---|---|
| Median Sale Price | $745,000 |
| YoY Price Change | +2.2% |
| Median Days on Market | 22 days |
| Active Listings | 3,100 |
| Est. 2BR Fair Market Rent | $2,359/mo |
| Gross Rental Yield | 3.8% |
| Median Household Income | $102,000 |
| Affordability Index | 54 |
| Price-to-Rent Ratio | 26.3× |
| Price-to-Income Ratio | 7.3× |
| Gross Rent Multiplier | 26.3 |
| Cap Rate (45% expense basis) | 0.72% |
| Cash Flow at 20% Down | -$3,521/mo |
| Cash-on-Cash Return | -24.66% |
| Break-Even Rent | $6,519/mo |
Getting Live Data via API
ZipMarketData provides live data for all ZIP codes within the Seattle, WA metro. Use the /market-stats endpoint with any Seattle ZIP code for the most current figures — or run the same analysis without writing code in the dashboard.