Federal Way Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Washington, United States
Is Airbnb profitable in Federal Way in 2025? Explore comprehensive Airbnb analytics for Federal Way, Washington, United States to uncover income potential. This 2025 STR market report for Federal Way, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 118 active listings.
Whether you're considering an Airbnb investment in Federal Way, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Federal Way Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.
Key Federal Way Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Federal Way (2025)
Understanding the monthly revenue variations for Airbnb listings in Federal Way is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Federal Way is typically May, while January often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Federal Way across different performance tiers:
- Best-in-class properties (Top 10%) achieve $6,334+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $4,072 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $2,091 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $920, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Federal Way
Federal Way Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Federal Way STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Julysees the highest demand (peak season occupancy), while January experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Federal Way:
- Best-in-class properties (Top 10%) achieve 84%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 68% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 45%.
- Entry-level properties (Bottom 25%) average 24% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Federal Way
Average Daily Rate (ADR) Airbnb Trends in Federal Way (2025)
Effective short term rental pricing strategy in Federal Way involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Federal Way typically peaks in July and dips lowest during March. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:
- Best-in-class properties (Top 10%) command rates of $413+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $256 or more.
- Typical properties (Median) charge around $139 per night.
- Entry-level properties (Bottom 25%) earn around $72 per night.
Average Daily Rate (ADR) Trend by Month in Federal Way
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Airbnb Seasonality Analysis & Trends in Federal Way (2025)
Peak Season (May, July, June)
- Revenue averages $3,916 per month
- Occupancy rates average 52.6%
- Daily rates average $202
Shoulder Season
- Revenue averages $2,760 per month
- Occupancy maintains around 46.1%
- Daily rates hold near $197
Low Season (January, February, November)
- Revenue drops to average $2,022 per month
- Occupancy decreases to average 40.7%
- Daily rates adjust to average $195
Seasonality Insights for Federal Way
- The Airbnb seasonality in Federal Way shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
- During the high season, the absolute peak month showcases Federal Way's highest earning potential, with monthly revenues capable of climbing to $4,158, occupancy reaching a high of 61.4%, and ADRs peaking at $205.
- Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $1,839, occupancy could drop to 38.0%, and ADRs may adjust down to $192.
- Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Federal Way.
Seasonal Strategies for Maximizing Profit
- Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
- Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
- Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
- Regularly analyze your own performance against these Federal Way seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Federal Way (2025)
Exploring the top neighborhoods for short-term rentals in Federal Way? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.
| Neighborhood / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Dash Point | A scenic waterfront community known for its beautiful parks and beaches. Ideal for families and nature lovers seeking relaxation and outdoor activities. | Dash Point State Park, Dash Point Beach, Pioneer Park, Marine Science Center, Fishing and kayaking spots |
| Federal Way Town Center | A vibrant area with shopping, dining, and entertainment options. Popular for travelers looking for convenience and accessibility to local attractions. | Federal Way Community Center, The Commons at Federal Way, Cinemark Federal Way, Weyerhaeuser King County Aquatic Center, Wild Waves Theme Park |
| Marine Hills | A suburban neighborhood with stunning views and access to parks. Attracts visitors looking for tranquility and nature, away from the hustle and bustle. | Marine Hills Park, West Hylebos Wetlands Park, Park and Ride facilities, Local hiking trails, Nature reserves |
| Redondo Beach | A picturesque beach area perfect for sunbathers and outdoor enthusiasts. Popular for those seeking beach activities and waterfront dining. | Redondo Beach Boardwalk, Saltwater State Park, Beach restaurants, Kayaking and paddleboarding, Coastal hiking trails |
| Lake Grove | A peaceful residential neighborhood known for its lake access and parks. Ideal for guests looking for a serene atmosphere close to nature. | Lake Grove Park, Walking trails, Fishing spots, Local wildlife viewing, Community events |
| Auburn | Nearby city offering a variety of attractions and events, appealing to visitors who want a diverse experience. A good base for exploring the surrounding region. | Emerald Downs Race Track, White River Valley Museum, Auburn Parks and Recreation, Shopping centers, Annual festivals |
| Woodmont | A beach community known for its relaxed vibe and access to the Puget Sound. Great for vacations centered around water activities. | Woodmont Park, Walking paths along the shore, Local seafood restaurants, Fishing opportunities, Water sports activities |
| Swan Creek | A hidden gem with green spaces and parks, perfect for those who enjoy a quieter stay while being close to city amenities. | Swan Creek Park, Walking trails, Picnic areas, Natural scenery, Wildlife watching |
Understanding Airbnb License Requirements & STR Laws in Federal Way (2025)
While Federal Way, Washington, United States currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Federal Way to ensure full compliance before hosting.
(Source: AirROI data, 2025, finding no licensed listings among those analyzed)
Top Performing Airbnb Properties in Federal Way (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Federal Waybased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
Coastal Comfort| B&B by the Sea
Entire Place • 5 bedrooms
Coastal Haven: Seaside Serenity Retreat
Entire Place • 5 bedrooms
Private Retreat with Stunning Puget Sound Views
Entire Place • 2 bedrooms
Waterview House
Entire Place • 4 bedrooms
New Beautiful Luxury | King Bed | BBQ | Near I-5
Entire Place • 4 bedrooms
Luxury Escape: 4BR Lakehouse with Full Amenities
Entire Place • 4 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Federal Way (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Federal Way based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Evolve | 4 | $182,045 | 60 | 3.36/5.0 |
| Thien | 1 | $102,869 | 34 | 4.65/5.0 |
| Christine | 2 | $100,356 | 43 | 4.75/5.0 |
| Mikaela | 1 | $97,966 | 22 | 4.68/5.0 |
| Michele | 1 | $85,005 | 254 | 4.97/5.0 |
| Nali | 1 | $83,811 | 25 | 4.84/5.0 |
| Natalia | 2 | $83,562 | 296 | 4.76/5.0 |
| Jr | 1 | $81,445 | 10 | 4.80/5.0 |
| Steve | 1 | $77,165 | 40 | 4.65/5.0 |
| Jialin | 1 | $72,092 | 49 | 4.92/5.0 |
Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Federal Way.
Dive Deeper: Advanced Federal Way STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Federal Way. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsFederal Way Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Federal Way
- The Federal Way Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 73.7% of the 118 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Federal Way, House properties are the most common (74.6%), reflecting the local real estate landscape.
- Houses represent a significant 74.6% portion, catering likely to families or larger groups.
- The presence of 8.5% Hotel/Boutique listings indicates integration with traditional hospitality.
- Smaller segments like outdoor/unique (combined 4.2%) offer potential for unique stay experiences.
Federal Way Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Federal Way
- The dominant room capacity in Federal Way is 1 bedroom listings, making up 22% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 2 bedrooms properties represent 40.6% of the active Airbnb listings in Federal Way, indicating a high concentration in these sizes.
- A significant 36.5% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Federal Way.
Federal Way Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Federal Way
- The most common guest capacity trend in Federal Way vacation rentals is listings accommodating 8+ guests (29.7%). This suggests the primary traveler segment is likely larger groups.
- Properties designed for 8+ guests and 4 guests dominate the Federal Way STR market, accounting for 44.1% of listings.
- 40.7% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Federal Way.
- On average, properties in Federal Way are equipped to host 4.2 guests.
Federal Way Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Federal Way
- The most common availability pattern in Federal Way falls within the 271-366 days range, representing 37.3% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 67.8% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 91-180 days range is most frequent in Federal Way (28.8%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 33.9% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Federal Way Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
28 listings
26.4% of total
2 Nights
31 listings
29.2% of total
3 Nights
14 listings
13.2% of total
4-6 Nights
8 listings
7.5% of total
7-29 Nights
13 listings
12.3% of total
30+ Nights
12 listings
11.3% of total
Key Insights
- The most prevalent minimum stay requirement in Federal Way is 2 Nights, adopted by 29.2% of listings. This highlights the market's preference for shorter, flexible bookings.
- A significant segment (11.3%) caters to monthly stays (30+ nights) in Federal Way, pointing to opportunities in the extended-stay market.
Recommendations
- Align with the market by considering a 2 Nights minimum stay, as 29.2% of Federal Way hosts use this setting.
- If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 26.4% currently do.
- Explore offering discounts for stays of 30+ nights to attract the 11.3% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Federal Way.
Federal Way Airbnb Cancellation Policy Trends Analysis (2025)
Super Strict 30 Days
1 listings
1% of total
Flexible
23 listings
23% of total
Moderate
33 listings
33% of total
Firm
15 listings
15% of total
Strict
28 listings
28% of total
Cancellation Policy Insights for Federal Way
- The prevailing Airbnb cancellation policy trend in Federal Way is Moderate, used by 33% of listings.
- There's a relatively balanced mix between guest-friendly (56.0%) and stricter (43.0%) policies, offering choices for different guest needs.
Recommendations for Hosts
- Consider adopting a Moderate policy to align with the 33% market standard in Federal Way.
- Regularly review your cancellation policy against competitors and market demand shifts in Federal Way.
Federal Way STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Federal Way
- The overall average booking lead time for vacation rentals in Federal Way is 40 days.
- Guests book furthest in advance for stays during July (average 58 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in January (average 26 days), indicating more last-minute travel plans during this time.
- Seasonally, Spring (46 days avg.) sees the longest lead times, while Winter (34 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (40 days) as a baseline for your pricing and availability strategy in Federal Way.
- For July stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 58 days out to capitalize on advance planning.
- Target marketing efforts for the Spring season well in advance (at least 46 days) to capture early planners.
- Monitor your own booking lead times against these Federal Way averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Federal Way (2025)
Amenity Prevalence
Amenity Insights for Federal Way
- Essential amenities in Federal Way that guests expect include: Heating, Wifi, Smoke alarm, Free parking on premises, Hot water. Lacking these (any) could significantly impact bookings.
- Popular amenities like Kitchen, Carbon monoxide alarm, Hangers are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Federal Way: Heating, Wifi, Smoke alarm, Free parking on premises, Hot water.
- Prioritize adding missing essentials: Heating, Wifi, Smoke alarm, Free parking on premises, Hot water.
- Consider adding popular differentiators like Kitchen or Carbon monoxide alarm to increase appeal.
- Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
- Regularly check competitor amenities in Federal Way to stay competitive.
Federal Way Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Federal Way
- The typical guest profile for Airbnb in Federal Way consists of primarily domestic travelers (90%), often arriving from nearby Seattle, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
- Domestic travelers account for 89.6% of guests.
- Key international markets include United States (89.6%) and Canada (4.6%).
- Top languages spoken are English (67%) followed by Spanish (13.6%).
- A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.
Recommendations for Hosts
- Target domestic marketing efforts towards travelers from Seattle and Portland.
- Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
- Highlight unique local experiences or amenities relevant to the primary guest profile.
- Consider seasonal promotions aligned with peak travel times for key origin markets.
Nearby Short-Term Rental Market Comparison
How does the Federal Way Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Canyon Creek | 10 | $6,420 | $303.37 | 59% |
| Erlands Point-Kitsap Lake | 11 | $6,325 | $353.76 | 56% |
| Lake Goodwin | 11 | $4,949 | $371.43 | 44% |
| Woods Creek | 10 | $4,871 | $352.24 | 40% |
| North Bend | 51 | $4,813 | $316.86 | 62% |
| Verlot | 11 | $4,787 | $255.29 | 61% |
| Amanda Park | 10 | $4,780 | $425.06 | 46% |
| Cape George Colony Club | 10 | $4,770 | $257.49 | 59% |
| Ronald | 150 | $4,706 | $409.10 | 39% |
| Allyn | 20 | $4,462 | $415.57 | 36% |