What is the rental yield in Mercer Heights, Mercer Island, Washington?

The gross yield in Mercer Heights, Mercer Island, Washington is 1.2. Prices are in line with Mercer Island and 109% above Washington, while prices are down 16.9% over the past year. The Red Flag score is 62, walkability is 44, and education is in the 99th percentile.

How does Mercer Heights compare with Mercer Island and Washington?

Mercer Heights in Mercer Island, Washington is priced in line with Mercer Island and 109% above Washington. Its gross yield is 1.2, prices are down 16.9% over the past year, and the Red Flag score is 62. Walkability is 44 and education is in the 99th percentile.

What should buyers know about Mercer Heights, Mercer Island, Washington?

Mercer Heights in Mercer Island, Washington stands out for education in the 99th percentile. Pricing is in line with Mercer Island and 109% above Washington, gross yield is 1.2, and prices are down 16.9% over the past year. The Red Flag score is 62.

Neighborhood

Mercer Heights

Mercer Island, Washington US

Mercer Heights in Mercer Island, Washington has a premium-priced profile, with prices in line with Mercer Island and 109% above Washington, a gross yield of 1.2, and prices down 16.9% over the past year. The neighborhood posts a walkability of 44, education in the 99th percentile, and a Red Flag score of 62. The main strength is the education percentile; the main risk is the combination of a low yield and a higher Red Flag score.

AI Summary•Updated May 2026

Area

7.28 mi²

ZIP Code

98040

County

King 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

$2,466,768

YoY-16.9%

Gross Rental Yield

1.2%

Listed rent · ZORI annualized

Red Flag Index

High

62 / 100

Walkability Score

Car-Dependent

OpenStreetMap POI density · national percentile

Education Score

99 / 100

Excellent · better than 99% of U.S. districts

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

AI Score

Limited

DistrictScore attractiveness · national model

Mercer Heights Property Prices & Rental Yield

Verified Redfin sale data and Zillow ZORI asking rent for Mercer Heights, Mercer Island.

Unlock the Mercer Heights 12-month price trend

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Market Economics Snapshot

May 2026

Metric	Value	YoY
Median Sale Price	$2,466,768	-16.9%
Price / Sq Ft (Verified)	$737/sqft	-3.5%
Asking Rent (Median)	$2,559/mo	-1.1%
Gross Rental Yield	1.2%	—
Liquidity Score	27 / 100	Low
Homes Sold (Period)	72	-10.0%

Is Mercer Heights Safe? Natural-Hazard Risk

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

Red Flag Breakdown

62 / 100

High Risk

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

Earthquake100Very High

Flood80Very High

Wildfire80Very High

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

Active transaction volume — 72 homes sold last period

Earthquake risk is Very High (100/100)

Flood risk is Very High (80/100)

Insights are generated from Mercer Heights's live DistrictScore metrics.

Mercer Heights 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; Mercer Heights inherits the Washington figures.

Radon Potential

EPA

Zone 3

Zone 3 — Lowest potential · Mercer Heights

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

Superfund (NPL)0.5 kmVery High

Industrial odor1 nearbyModerate

Point-source screening near Mercer Heights: 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 Mercer Heights

Amenity density and pedestrian access from OpenStreetMap points of interest.

Walkability & Amenities

OpenStreetMap POI

44

Car-Dependent

Walkability Score

1

Grocery

4

Dining

20

Schools

0

Universities

0

Hospitals

0

Pharmacies

20

Parks

0

Rail Transit

0

Coworking

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

Mercer Heights vs Mercer Island vs Washington

How Mercer Heights benchmarks against its city and state medians.

Benchmark vs City & State

In Mercer Heights, the median sale price sits in line with the median for Mercer Island neighborhoods and about 109% above the statewide median. Gross rental yield is 1.2%, against 1.2% for Mercer Island neighborhoods and 4.0% statewide. Over the past 12 months, prices fell 16.9%. Transaction liquidity sits in line with the median for Mercer Island neighborhoods and below the statewide median.

Area	Median / Sq Ft	Gross Yield	Liquidity
Mercer Heights	$737/sqft	1.2%	27
Mercer Island	$737/sqft	1.2%	27
Washington	$352/sqft	4.0%	32

Unlock the Mercer Heights benchmark

Compare Mercer Heights against Mercer Island 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 Mercer Island Real-Estate News

New Fed chairman may leave mortgage rates mostly unchanged

Guaranteed Rate • Jun 18, 2026

Household real estate wealth hits record $48.7 trillion

Eye On Housing • Jun 18, 2026

U.S. commercial property prices hit record as deal patterns shift

Altus Group • Jun 18, 2026

Mercer Heights Real Estate FAQ

Mercer Heights in Mercer Island, Washington has a mixed profile. Prices are in line with Mercer Island and 109% above Washington, gross yield is 1.2, and prices are down 16.9% over the past year. The Red Flag score is 62, with walkability of 44 and education in the 99th percentile.

Neighborhoods near Mercer Heights

Compare Mercer Heights with nearby neighborhoods in Mercer Island.

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