22 Washington cities ranked by estimated cap rate. The average cap rate across Washington markets is 2.4%, with median home prices averaging $485K and rents averaging $1,726/mo. Aberdeen leads with a 3.5% cap rate at a $315K median price. Property taxes average 0.93% across Washington markets.
Washington offers 22 investable rental markets tracked by CapRateCity. The state average cap rate of 2.4% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Washington home prices average $485K, which is 46% above the national average of $333K. Rents average $1,726/mo.
Taxes and costs: Property taxes average 0.93% across Washington, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $737 per year to NOI on an average-priced property. Kennewick has the lowest rate at 0.9%.Vacancy averages 4.6%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Washington averages 1.10% per year, led by Kennewick at 1.5%. Home values are appreciating at 2.8% annually on average. Strong population growth is driving housing demand and supporting both rent increases and price appreciation across the state.
Bottom line: Washington is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.