Cap rates 3.2–3.9% · Median price $700,000 · Median rent $2,400/mo · Population 750K
Seattle is a global tech hub (Amazon, Microsoft, Boeing) with exceptional income levels and long-term appreciation. Cash flow is very tight but tenant quality is exceptional and appreciation has been among the best in the US.
Here's what the numbers look like on a typical Seattle rental at current market rates (20% down, 7.5% rate, standard expenses):
| Metric | As-Is (Current Rents) | Stabilized (Market Rents) |
|---|---|---|
| Purchase Price | $700,000 | $700,000 |
| Down Payment (20%) | $140,000 | $140,000 |
| Monthly Rent | $2,160 | $2,400 |
| Monthly Mortgage | $3,916 | $3,916 |
| Monthly OpEx (est 35%) | $756 | $840 |
| Est. Monthly Cash Flow | $-2,512/mo | $-2,356/mo |
| Cap Rate | 2.4% | 2.7% |
* Estimates only. Uses 20% down, 7.5% rate, 30yr term, 35% expense ratio, 5% vacancy. Run your own numbers with the calculator below.
Best for cash flow: Focus on workforce housing in established neighborhoods with strong employer anchors. Avoid chasing the highest raw yield numbers — the 10% cap rate in a declining neighborhood often means vacancy and management headaches that destroy returns.
Best for appreciation: Target neighborhoods within 2 miles of job centers, universities, or transit that are in the early stages of gentrification. Look for the coffee shop / yoga studio signal — amenities follow renters, and renters follow amenities.
Best for STR: Check local STR regulations carefully before investing. Some {name} neighborhoods have restrictions on short-term rentals.
DSCR Loans: Most Seattle properties qualify for DSCR financing with a 1.0+ ratio. Use our DSCR Calculator to check qualification before making an offer.