What is the rental yield in Happy Valley, Bellingham, Washington?

The gross yield in Happy Valley, Bellingham, Washington is 4.0. That sits alongside prices that are in line with Bellingham and about 38% above Washington, plus a Red Flag score of 49, walkability of 80, and education in the 77th percentile.

How have prices changed in Happy Valley over the past year?

Prices in Happy Valley, Bellingham, Washington are down 7.4 over the past year. The neighborhood is priced in line with Bellingham and about 38% above Washington, with a gross yield of 4.0, a Red Flag score of 49, and walkability of 80.

How does Happy Valley compare with Bellingham and Washington?

Happy Valley in Bellingham, Washington is priced in line with Bellingham and about 38% above Washington. It also has a gross yield of 4.0, prices down 7.4 over the past year, walkability of 80, education in the 77th percentile, and a Red Flag score of 49.

Neighborhood

Happy Valley

Bellingham, Washington US

Happy Valley in Bellingham, Washington has a balanced investment profile with pricing in line with Bellingham and about 38% above Washington, a gross yield of 4.0, and prices down 7.4 over the past year. The neighborhood combines strong walkability of 80 and education in the 77th percentile with a Red Flag score of 49, pointing to moderate risk alongside solid access and school-district test-score performance.

AI Summary•Updated May 2026

Area

0.95 mi²

ZIP Code

98225

County

Whatcom County

State

Washington

Redfin — median sale & volumeZillow ZORI — asking rentFEMA National Risk Index v1.20OpenStreetMap — POIFBI UCR — state crimeEPA — radon zonesEPA FRS / BTS — hazard screeningUS Census ACS / TIGER 2024

Verified Price · Median Sale

$625,094

YoY-7.4%

Gross Rental Yield

4.0%

Listed rent · ZORI annualized

Red Flag Index

Moderate

49 / 100

Walkability Score

Very Walkable

OpenStreetMap POI density · national percentile

Education Score

77 / 100

Excellent · better than 77% of U.S. districts

Pre-pandemic SEDA (2018/19) · district proxy

AI Score

Fair

DistrictScore attractiveness · national model

Happy Valley Property Prices & Rental Yield

Verified Redfin sale data and Zillow ZORI asking rent for Happy Valley, Bellingham.

Unlock the Happy Valley 12-month price trend

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Market Economics Snapshot

May 2026

Metric	Value	YoY
Median Sale Price	$625,094	-7.4%
Price / Sq Ft (Verified)	$487/sqft	+3.5%
Asking Rent (Median)	$2,068/mo	+4.2%
Gross Rental Yield	4.0%	—
Liquidity Score	33 / 100	Moderate
Homes Sold (Period)	103	-28.5%

Is Happy Valley Safe? Natural-Hazard Risk

FEMA National Risk Index composite across eight hazards, plus inherited Washington crime context.

Red Flag Breakdown

49 / 100

Moderate Risk

Composite is weighted by expected impact — frequent low-damage hazards (hail, wind) weigh less than flood or wildfire.

Earthquake100Very High

Wildfire60High

Flood40Moderate

Heat40Moderate

Tornado20Low

Strong Wind20Low

Hail20Low

Hurricanen/an/a

7/8 hazards scored · FEMA NRI v1.20

Crime (state-level): Washington averaged 27.9 crimes and 3.3 violent per 1,000 residents (-13.0% YoY) in 2024(FBI UCR). Compare the state to the country, not states as a ranking — full Safety & Crime data lives on the state page.

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Tract-level hazard heatmap & parcel detail with Pro

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See all eight FEMA hazard scores — free with a DistrictScore account.

What Stands Out AI Insight

Highly walkable neighborhood — score 80/100

Active transaction volume — 103 homes sold last period

Dense amenities — 38 dining & 10 grocery options nearby

Earthquake risk is Very High (100/100)

Insights are generated from Happy Valley's live DistrictScore metrics.

Happy Valley Environment & Safety

Satellite PM2.5 air-quality history, FBI UCR crime trend (Washington-level, the finest official aggregation), EPA radon potential and point-source hazard screening.

Washington Crime Trend

FBI UCR

20132024

All crimes / 1k

Violent / 1k

Year	Crimes / 1k	Violent / 1k	YoY
2024	27.9	3.3	-13.0%
2023	32.5	3.6	-12.5%
2022	37.5	3.8	+11.9%
2021	33.7	3.4	+12.1%
2020	30.3	2.9	+0.9%
2019	30.3	3.0	—

Reported at the state level — the finest official US crime aggregation; Happy Valley inherits the Washington figures.

Radon Potential

EPA

Zone 3

Zone 3 — Lowest potential · Happy Valley

EPA radon zones estimate indoor radon potential county-wide (Zone 1 highest, Zone 3 lowest). Testing is recommended in all zones.

Environmental Hazards

EPA / BTS

Industrial odor3 nearbyVery High

Point-source screening near Happy Valley: EPA Superfund National Priorities List & Facility Registry (2026), BTS aviation noise (2020, 24-hour average level). Superfund shows distance to the nearest listed site; odor shows detected sources within the screening radius. Only detected sources are listed; the bar shows severity vs. all U.S. neighborhoods.

Walkability & Amenities in Happy Valley

Amenity density and pedestrian access from OpenStreetMap points of interest.

Walkability & Amenities

OpenStreetMap POI

80

Very Walkable

Walkability Score

10

Grocery

38

Dining

6

Schools

0

Universities

3

Hospitals

1

Pharmacies

4

Parks

0

Rail Transit

0

Coworking

POI counts are amenities within Happy Valley's boundary plus a 400 m walk buffer. Rail transit excludes bus stops.

Happy Valley vs Bellingham vs Washington

How Happy Valley benchmarks against its city and state medians.

Benchmark vs City & State

Across Happy Valley, the median sale price sits in line with the median for Bellingham neighborhoods and about 38% above the statewide median. Gross rental yield is 4.0%, against 4.0% for Bellingham neighborhoods and 4.0% statewide. Over the past 12 months, prices fell 7.4%. Transaction liquidity sits in line with the median for Bellingham neighborhoods and in line with the statewide median.

Area	Median / Sq Ft	Gross Yield	Liquidity
Happy Valley	$487/sqft	4.0%	33
Bellingham	$487/sqft	4.0%	33
Washington	$352/sqft	4.0%	32

Unlock the Happy Valley benchmark

Compare Happy Valley against Bellingham and Washington medians — free with a DistrictScore account.

Buying Property in the US as a Foreigner

Federal & Washington tax facts for non-resident buyers, plus the latest local market news.

Buying as a Foreigner

US Tax & Ownership

Applies to everyone7

Capital Gains (Federal)

Long-term capital gains taxed federally at 0/15/20%, plus a 3.8% Net Investment Income Tax on higher incomes (2026).

Property Tax

Property tax: ~0.74% average effective rate (statewide average; set and collected locally).

State Income Tax

No state income tax — rental income is not taxed at the state level.

State Capital Gains

No general income tax; the 7% capital gains tax exempts real estate.

Transfer Tax

Real estate transfer tax: REET graduated 1.1-3% (mansion-style).

Assessment Cap

No Proposition 13-style assessment cap; property is reassessed at market value.

Mansion Tax / Rent Control

Statewide rent control caps rent increases (HB 1217; 9.683% max for 2026); transfer tax is mansion-style.

US citizens & tax residents6

Primary-Home Exclusion

Selling your main home: exclude up to $250k of gain (single) / $500k (married) if you owned and lived there 2 of the last 5 years.

1031 Like-Kind Exchange

A 1031 like-kind exchange defers capital gains tax on investment property; 45 days to identify, 180 to close. Real estate only.

Depreciation Recapture

Residential rentals depreciate over 27.5 years; on sale, recaptured depreciation is taxed up to 25% (Section 1250).

Mortgage Interest Deduction

Mortgage interest is deductible on up to $750k of home debt. The SALT cap rose to $40,000 for 2025-2029 (reverts to $10k in 2030).

Opportunity Zones

Opportunity Zones are now permanent (2025): reinvested capital gains get deferral plus a basis step-up, and are tax-free after 10 years.

Rental Income (Resident)

Rental income is reported on Schedule E; passive-loss rules (Section 469) limit deducting rental losses against other income.

Foreign buyers (non-residents)5

FIRPTA (Foreign Sellers)

FIRPTA: the buyer withholds 15% of the gross sale price when a nonresident sells US property. It is an advance deposit, not the final tax.

Non-Resident Capital Gains

Nonresident sellers pay US capital gains tax (generally 15-20%) on the net gain via Form 1040-NR; FIRPTA withholding is credited.

Non-Resident Rental Tax

Nonresident rental income is taxed at 30% of gross by default, or on net income at graduated rates via a Section 871(d) election (W-8ECI).

Estate Tax (Non-Resident)

Nonresidents get only a $60,000 US estate-tax exemption (vs $13.99M for residents); US property above it is taxed up to 40%. Treaties may help.

ITIN Requirement

Nonresidents without an SSN need an ITIN (Form W-7) to file US tax returns, claim FIRPTA refunds, and report rental income.

Talk to a US real-estate tax advisor

FIRPTA, ITIN & Washington property-tax guidance for foreign buyers

Latest Bellingham Real-Estate News

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Guaranteed Rate • Jun 18, 2026

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Eye On Housing • Jun 18, 2026

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Altus Group • Jun 18, 2026

Happy Valley Real Estate FAQ

Happy Valley in Bellingham, Washington shows a balanced profile with a gross yield of 4.0 and prices down 7.4 over the past year. It is priced in line with Bellingham and about 38% above Washington, while the Red Flag score is 49 and walkability is 80.

Neighborhoods near Happy Valley

Compare Happy Valley with nearby neighborhoods in Bellingham.

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