Cost of Living in Federal Way

Federal Way runs genuinely more affordable than North King County, with a median home price of $615,475 (or a separately-cited $585,000) and citywide rent carrying a real, disclosed spread of $1,800-$1,941/month, layered with no state income tax and a 10.5% combined sales tax as of July 2026.

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Housing: a real, disclosed price spread in a genuinely tight market

Federal Way's median home price ran $615,475 per one citation (up 0.09% year-over-year) versus a separately-cited $585,000 for the same general period -- both disclosed rather than reconciled. The market itself runs genuinely tight and strongly seller-favorable: an average of 8 days on market, only 1.6 months of supply, and 38.46% of homes selling above asking price.

Rent: a real, disclosed spread

Federal Way's citywide median rent (all bedroom counts and types) ran $1,941/month per one citation versus a separately-cited, later $1,800 -- both disclosed. One-bedroom rentals averaged $1,564.

Washington's no income tax and Federal Way's new 10.5% combined sales tax

Washington levies no state personal income tax (see taxes for the statewide capital gains excise tax nuance). Federal Way's combined sales tax rose from 10.4% to 10.5% effective July 1, 2026, after the city council unanimously approved a new 0.1% local public-safety sales tax in April 2026 -- a real, current, and specifically time-stamped local tax change.

Property tax: King County's countywide rate applies

Federal Way sits in King County and shares the countywide average effective property tax rate of approximately 0.83% -- the highest of Washington's 39 counties, driven by the county's elevated home values.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.