What is the rental yield in Twin Lakes, Federal Way?

The gross yield in Twin Lakes, Federal Way, Washington is 3.7%. Prices are about 3% below Federal Way and 12% below Washington, but prices are down 6.1% over the past year. Walkability is 39 and education is in the 33rd percentile.

How does Twin Lakes compare to Federal Way and Washington?

Twin Lakes in Federal Way, Washington is priced about 3% below Federal Way and 12% below Washington. Gross yield is 3.7%, prices are down 6.1% over the past year, walkability is 39, and the Red Flag score is 60.

Neighborhood

Twin Lakes

Federal Way, Washington US

Twin Lakes in Federal Way, Washington is a lower-yield market with a Red Flag score of 60, walkability of 39, and education in the 33rd percentile. Prices are about 3% below Federal Way and 12% below Washington, while gross yield is 3.7% and prices are down 6.1% over the past year. The main strength is the lower price level versus city and state; the main risk is the combination of a 60 Red Flag score and declining prices.

AI Summary•Updated May 2026

Area

4.18 mi²

ZIP Code

98023

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

$642,309

YoY-6.1%

Gross Rental Yield

3.7%

Listed rent · ZORI annualized

Red Flag Index

High

60 / 100

Walkability Score

Car-Dependent

OpenStreetMap POI density · national percentile

Education Score

33 / 100

Limited · better than 33% of U.S. districts

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

AI Score

Fair

DistrictScore attractiveness · national model

Twin Lakes Property Prices & Rental Yield

Verified Redfin sale data and Zillow ZORI asking rent for Twin Lakes, Federal Way.

Unlock the Twin Lakes 12-month price trend

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Market Economics Snapshot

May 2026

Metric	Value	YoY
Median Sale Price	$642,309	-6.1%
Price / Sq Ft (Verified)	$311/sqft	-6.0%
Asking Rent (Median)	$1,983/mo	-1.3%
Gross Rental Yield	3.7%	—
Liquidity Score	35 / 100	Moderate
Homes Sold (Period)	117	-18.8%

Is Twin Lakes Safe? Natural-Hazard Risk

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

Red Flag Breakdown

60 / 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

Wildfire60High

Heat60High

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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What Stands Out AI Insight

Active transaction volume — 117 homes sold last period

Earthquake risk is Very High (100/100)

Flood risk is Very High (80/100)

Insights are generated from Twin Lakes's live DistrictScore metrics.

Twin Lakes 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; Twin Lakes inherits the Washington figures.

Radon Potential

EPA

Zone 3

Zone 3 — Lowest potential · Twin Lakes

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)4.1 kmModerate

Industrial odor2 nearbyVery High

Aviation noise46 dBVery Low

Point-source screening near Twin Lakes: 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 Twin Lakes

Amenity density and pedestrian access from OpenStreetMap points of interest.

Walkability & Amenities

OpenStreetMap POI

39

Car-Dependent

Walkability Score

9

Grocery

22

Dining

5

Schools

0

Universities

1

Hospitals

2

Pharmacies

13

Parks

0

Rail Transit

0

Coworking

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

Twin Lakes vs Federal Way vs Washington

How Twin Lakes benchmarks against its city and state medians.

Benchmark vs City & State

In Twin Lakes, the median sale price sits about 3% below the median for Federal Way neighborhoods and about 12% below the statewide median. Gross rental yield is 3.7%, against 3.7% for Federal Way neighborhoods and 4.0% statewide. Over the past 12 months, prices fell 6.1%. Transaction liquidity sits above the median for Federal Way neighborhoods and above the statewide median.

Area	Median / Sq Ft	Gross Yield	Liquidity
Twin Lakes	$311/sqft	3.7%	35
Federal Way	$321/sqft	3.7%	31
Washington	$352/sqft	4.0%	32

Unlock the Twin Lakes benchmark

Compare Twin Lakes against Federal Way 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 Federal Way 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

Twin Lakes Real Estate FAQ

Twin Lakes in Federal Way, Washington has a mixed profile with lower pricing but weaker momentum. Prices are about 3% below Federal Way and 12% below Washington, gross yield is 3.7%, and prices are down 6.1% over the past year. The Red Flag score is 60.

Neighborhoods near Twin Lakes

Compare Twin Lakes with nearby neighborhoods in Federal Way.

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