Airbnb Market Analytics, Statistics and Data in Federal Way, Washington, United States
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Federal Way? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Federal Way:
How much do Airbnb hosts make on average per month in Federal Way?
The short-term rental market in Federal Way shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $2,191 per month
- Strong performing properties (top 25%) make $4,311 or more
- Best-in-class properties (top 10%) achieve $7,063+ monthly
- Entry-level properties (bottom 25%) typically earn around $1,049
Revenue Variations by Month
Occupancy Rates Throughout the Year in Federal Way
The market in Federal Way shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 45% occupancy rates
- Strong performing properties (top 25%) achieve 69% or higher
- Best-in-class properties (top 10%) reach 83%+occupancy
- Entry-level properties (bottom 25%) average around 25%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Federal Way
Daily rates in Federal Way vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $138 per night
- Strong performing properties (top 25%) secure $260 or more
- Best-in-class properties (top 10%) pull in $416+ per night
- Entry-level properties (bottom 25%) earn around $72
Daily Rate Variations by Month
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Seasonality patterns in Federal Way
Peak Season (May, July, June)
- Revenue peaks at $4174.06 per month
- Occupancy rates reach 61.12%
- Daily rates average $215.66
Shoulder Season
- Revenue averages $3138.77 per month
- Occupancy maintains 46.73%
- Daily rates hold at $199.36
Low Season (December, November, January)
- Revenue drops to $1924.28 per month
- Occupancy decreases to 36.58%
- Daily rates adjust to $186.90
Is it still profitable to do Airbnb in Federal Way in 2025?
Yes! Federal Way demonstrates highly seasonal trends requiring strategic adaptation, featuring a healthy occupancy rate of 47% and strong monthly revenue averaging $3139 and The market's 118 active listings indicate growing demand with plenty of opportunity for new properties. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (business travelers, long-term stays, holiday visitors, event attendees, remote workers)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Federal Way
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| City Center | The bustling heart of Federal Way with shopping, dining, and entertainment options. Ideal for guests looking for convenience and accessibility to local attractions. | Federal Way Commons Mall, The Commons at Federal Way, City Hall Park, Celebration Park, Emerald Downs Racetrack |
| Dash Point | A scenic neighborhood close to Dash Point State Park and stunning waterfront views. Great for tourists looking to enjoy nature and outdoor activities. | Dash Point State Park, Dash Point Beach, Seattle Nature Tours, Puget Sound views, Fishing and hiking opportunities |
| Wild Waves | Home to the famous Wild Waves Theme Park, this area attracts families and thrill-seekers. A fun spot for guests looking for amusement and outdoor fun. | Wild Waves Theme Park, Lake Tapps, Shady Acres Park, Restaurants and shops nearby |
| North Lake | A peaceful residential area near parks and lakes, perfect for those seeking a relaxing retreat. Attractive to visitors looking for outdoor relaxation. | North Lake Park, Lake Killarney, Parks and walking trails, Biking paths |
| Federal Way Transit Center | Well-connected via public transportation, making it easy for guests to explore the Seattle area. A great choice for business travelers and commuters. | Federal Way Transit Center, SeaTac Airport, Shopping centers nearby, Restaurants, Business facilities |
| Pioneer Park | A charming neighborhood known for its green spaces and family-friendly atmosphere. Ideal for visitors looking for a quiet stay with park access. | Pioneer Park, Weyerhaeuser Aquatic Center, Playgrounds, Walking trails |
| South Federal Way | A diverse community with various amenities and services. Appeals to a mix of guests from families to business travelers. | Restaurants and cafes, Shopping districts, Parks, Art installations |
| Lakehaven | A suburban area that offers a mix of tranquility and activity. Popular among families and those seeking a home-like stay. | Lakehaven Marketplace, Parks, Nearby schools, Family-friendly facilities |
Do you need a license for Airbnb in Federal Way?
We recommend checking directly with Federal Way's local government regarding short-term rental licensing requirements. Current market data shows limited licensing information (0% of listings), making it essential to verify current regulations before starting your Airbnb business.
Top Performing Airbnb Properties in Federal Way
Coastal Haven: Seaside Serenity Retreat
Entire Place • 5 bedrooms
Waterview House
Entire Place • 4 bedrooms
Coastal Comfort| B&B by the Sea
Entire Place • 5 bedrooms
Luxe Federal Way Rental - Walk to the Water!
Entire Place • 4 bedrooms
New Beautiful Luxury | King Bed | BBQ | Near I-5
Entire Place • 4 bedrooms
Nature’s Nest | Treehouse Retreat at State Park
Entire Place • 4 bedrooms
Top Performing Professional Hosts in Federal Way
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Evolve | 4 | $225,227 | 60 | 3.36/5.0 |
| Mikaela | 1 | $120,431 | 22 | 4.68/5.0 |
| Nali | 1 | $108,608 | 25 | 4.84/5.0 |
| Thien | 1 | $99,792 | 34 | 4.65/5.0 |
| Christine | 2 | $95,223 | 43 | 4.75/5.0 |
| Jr | 1 | $86,926 | 10 | 4.80/5.0 |
| Jialin | 1 | $85,879 | 49 | 4.92/5.0 |
| Michele | 1 | $83,812 | 254 | 4.97/5.0 |
| Natalia | 2 | $79,931 | 296 | 4.76/5.0 |
| Steve | 1 | $77,509 | 40 | 4.65/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Federal Way
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (74.6%), with house and boutique & hotels properties comprising 83.9% of inventory
- Untapped potential in apartment & condo, outdoor & mobile segments (8.4% combined)
Room Capacity Distribution
Analysis of 118 properties in Federal Way shows that 1 bedroom properties are most prevalent, making up 22.9% of the market. The market tends to favor smaller properties, with 1 bedroom and 2 bedrooms together representing 40.7% of all listings.
Key Insights
- Most common: 1 bedroom (22.9%)
- Least common: 5+ bedrooms (8.5%)
- Market concentration: 40.7% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 118 properties in Federal Way reveals that 8+ guests properties dominate the market, representing 30.5% of all listings. The average property accommodates 4.3 guests, with a clear trend towards larger guest capacities. Properties accommodating 8+ guests and 4 guests make up 44.9% of the market.
Key Insights
- Most common capacity: 8+ guests (30.5% of market)
- Least common capacity: 7 guests (2.5% of market)
- Average guest capacity: 4.3 guests per property
- Market concentration: 44.9% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 118 properties in Federal Way, the most common availability pattern is 271-366 days (40.7% of properties). For actual bookings, properties most frequently secure bookings for 181-270 days (28% of properties).
Key Insights
- Most common availability window: 271-366 days (40.7%)
- Most common booking duration: 181-270 days (28%)
- Properties with high availability (180+ days): 66.9%
- Properties with long-term bookings (180+ days): 37.3%
Minimum Stay Distributions
1 Night
27 listings
26.2% of total
2 Nights
33 listings
32% of total
3 Nights
19 listings
18.4% of total
4-6 Nights
6 listings
5.8% of total
7-29 Nights
13 listings
12.6% of total
30+ Nights
5 listings
4.9% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 58.2%
- Mid-length stays (4-6 nights) represent 5.8% of listings
- Monthly+ stays (4.9%) suggest a stable extended-stay market
- High market flexibility with 76.6% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Super Strict 30 Days
1 listings
1% of total
Flexible
23 listings
23.5% of total
Moderate
31 listings
31.6% of total
Firm
14 listings
14.3% of total
Strict
29 listings
29.6% of total
Key Insights
- Moderate is the preferred policy at 31.6% of listings
- The market shows a balanced distribution between guest-friendly (55.1%) and strict (43.9%) policies
- Strong market consensus around Moderate policies
- Super Strict 30 Days policies are least common at 1.0% of listings
Recommendations
- Market supports various policies - choose based on your property type and target guests
- Strong market preference for Moderate policies suggests this should be your baseline
- Consider generous cancellation terms as a competitive advantage
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in Jul, Mar, May, averaging 50 days
- Shortest booking windows are in Nov, Oct, Jan, averaging 33 days
- Summer shows the longest average booking window at 46 days, while Winter has the shortest at 35 days
Recommendations
- Implement dynamic pricing strategies for Summer bookings at least 46 days in advance
- Consider early bird discounts during Winter to encourage longer lead times
- Focus on last-minute booking promotions during Nov-Jan when lead times are shortest
Popular Airbnb Amenities in Federal Way
Below is the distribution of amenities across listings in Federal Way:
Traveler Demographics
Key Insights
- Domestic travelers make up 90.4% of total guests, indicating a dominant local market share.
- Primary international markets: Canada (4.6%) and China (0.7%)
- English is the top language at 75.9%, followed by Spanish (15.5%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 6.5%
Recommendations
- Target marketing campaigns for Seattle and Portland markets
- Develop localized content for Canada and China
- Prioritize English and Spanish language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Federal Way. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Canyon Creek | 10 | $7,161 | $312.93 | 62% |
| Erlands Point-Kitsap Lake | 11 | $6,558 | $356.05 | 58% |
| Lake Goodwin | 11 | $5,746 | $385.80 | 44% |
| Woods Creek | 11 | $5,593 | $358.64 | 46% |
| Ronald | 151 | $5,058 | $425.51 | 39% |
| Verlot | 11 | $4,969 | $253.44 | 60% |
| Cape George Colony Club | 10 | $4,893 | $260.17 | 60% |
| North Bend | 51 | $4,824 | $316.31 | 62% |
| Sudden Valley | 65 | $4,811 | $308.53 | 53% |
| Amanda Park | 10 | $4,684 | $402.96 | 46% |
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