Seattle Apartments Beat Houses on Yield at Every Bedroom Count

Apartments win Seattle's short-term rental yield race because entry prices fall faster than nightly rates do. A 2-bed apartment at $371,454 costs roughly half what a 2-bed house at $780,148 does, yet nightly rates for a well-located city condo don't drop proportionally. That price-to-rate mismatch produces a gross yield gap: apartments average 8.7% against houses at 4.6%, a gap of 4.1% before HOA fees, before operating costs, and before the capital appreciation that houses typically deliver over longer holds.

These figures are city medians across 83 King County ZIP codes. Your specific neighbourhood may sit well above or well below, Bellevue, Kirkland, Mercer Island, and urban Seattle each trade on very different price ladders.

The Side-by-Side: Houses vs Apartments at Each Bedroom Count

City medians across 83 ZIP codes. Gross yields before HOA (apartments) and before operating costs.

The top-yielding combination in Seattle is 1-bed apartment at 9.9% gross, while the workhorse 3-bed house, the most commonly traded investment property in the county, returns 4.3% short-term and 2.5% as a long-term rental. That long-term figure is well below the US median of 5.3%, a clear signal that Seattle is priced as an appreciation market rather than a cash-flow market.

Why the Gap Exists, and What HOA Fees Take Back

The gap is a price-denominator story. A 2-bed apartment at roughly $371,454 and a 2-bed house at roughly $780,148 draw from overlapping traveller pools: a business visitor in South Lake Union or a tourist near Pike Place often cannot tell a nice condo from a nice townhome once the door closes. Nightly rates track the local market and the quality of the unit, not the deed type. Divide similar revenue by a much smaller purchase price and the apartment yield pulls ahead.

HOA fees narrow the gap in practice. Condo dues in King County commonly run around $3,966 per year for a standard 2-bed, with luxury high-rise buildings in downtown Seattle, Belltown, and Bellevue routinely charging substantially more once amenities, concierge staffing, and reserve contributions are included. None of that is deducted from the gross yields in the table above. Factor HOA fees into your own model and the apartment's advantage shrinks, though in most Seattle sub-markets it does not disappear.

The HOA story has a second, sharper edge: individual condo associations can prohibit short-term rentals regardless of what city law permits. Permit required ($75) in Seattle. Seattle requires a short-term rental operator license. Hosts may rent up to 2 units (1 must be primary residence). Platform accountability required. Seattle's operator licence allows the activity under city rules, but your building's CC&Rs and board minutes override that. Always read the declarations and pull the most recent board meeting notes before you make an offer.

The Bedroom Curve Runs Differently for Houses and Apartments

For houses, larger properties tend to earn better short-term yields in this market because group-travel pricing scales disproportionately, a 4+ bed house in Seattle commands premium nightly rates from families, corporate retreats, and relocation tenants, even as purchase price growth moderates at the top end. For apartments, the curve typically peaks in the 1-bed and 2-bed range where urban demand is thickest, with the 4+ bed apartment yield of 7.8% reflecting the steep entry cost of large penthouse-style condos that cater to a much thinner buyer pool.

Long-term rental yields tell a quieter story across bedroom counts, the spread between 1-bed and 4+ bed is narrower because tenants pay by household budget, not by group-trip economics. If your strategy is pure buy-and-hold leasing, the bedroom decision matters less than the location and the price you pay.

Suburb-Level Variation Swamps City Medians

Median yields across 83 King County ZIP codes hide enormous neighbourhood-level variation. Seatac (98168) leads on gross yield at 5.0% with a median sale price of $587,500, while Maple Valley (98038) (4.6%) and Burien (98148) (4.5%) round out the top of the ranking, all of them sitting well above the King County long-term average of 2.8%. At the other end, Bellevue and Mercer Island deliver sub-2% long-term yields on seven-figure purchase prices, a pure appreciation play. The dashboard shows suburb-level data for every bedroom count and property type, so you can compare within the specific area you are evaluating rather than rely on a county median.

View Seattle in the dashboard → Free preview · every bedroom count and property type

What the Table Does Not Capture

• HOA fees: Estimated at around $3,966 per year for a standard 2-bed apartment in King County, not deducted from the gross yields in the table above. Luxury downtown buildings charge meaningfully more.
• Capital appreciation: Houses typically outperform apartments on long-term value growth because you own the land. In a premium West Coast market like Seattle, where the tech sector, constrained supply, and a strong employment base have delivered decades of above-average price growth, the appreciation gap compounds materially over a ten-year hold.
• Renovation potential: Houses offer optionality that apartments cannot match: basement conversions, ADU or DADU additions (Seattle has actively liberalised its backyard cottage rules), extensions, and site-level improvements. Apartments offer none of this and are capped by strata approval.
• Financing constraints: Some US lenders restrict mortgages on small apartments under 500 sq ft, on non-warrantable condo buildings, or on buildings with high investor-to-owner ratios. Seattle has several downtown buildings flagged as non-warrantable, check with your lender early.
• 4+ bed data breadth: The 4+ bed category bundles 4, 5, and 6+ bedroom listings. In an expensive market like King County, a small number of Mercer Island or Medina sales can pull the median in either direction. Treat this figure as directional.

Seattle is a Premium Market: Yield is Not the Only Scoreboard

King County's median sale price of $986,000 sits roughly double the Washington state median of $480,400 and is four times the US national median of $242,500. The corresponding long-term gross yield of 2.8% sits well below the state average of 4.0% and the national figure of 5.3%. That is the signature of a premium appreciation market, not a cash-flow market, investors here are paying for land value, employment strength, and historical price growth rather than a strong rental coupon.

For the house-vs-apartment decision, that premium framing cuts two ways. An apartment gives you higher gross yield, lower entry cost, and lower friction, useful in a market where cash-flow is thin. A house gives you land ownership, renovation optionality, and stronger long-run appreciation, arguably the whole point of paying Seattle prices in the first place. Investors whose thesis is built on Puget Sound population growth and the tech employment base tend to favour houses; investors focused on cash-flow efficiency or who want a smaller cheque to write tend to favour apartments, accepting HOA friction as the cost of entry. Neither is wrong; they are different strategies for different investor profiles.

Data reflects market conditions as of April 2026. You can review the full neighbourhood breakdown, plus the market score methodology and underlying data sources used for these estimates.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.