Introduction
Seattle, WA, known for its iconic Space Needle, tech-driven economy, and natural beauty, continues to attract a steady stream of tourists and business travelers. As the demand for short-term rentals remains strong, understanding the top-performing zip codes can help maximize your investment returns. Here’s a detailed analysis of each area, focusing on gross yields, annual revenues, Zillow home values, and neighborhood characteristics.
98121: Belltown & Denny Triangle
- Gross Yield: 8%
- Annual Revenue: $49,067
- Zillow Home Value: $592.5K
Zip code 98121 covers Belltown and parts of Denny Triangle, two of Seattle’s most vibrant urban neighborhoods. With a gross yield of 8% and annual revenue of $49,067, this area is ideal for investors looking for steady returns in a bustling city environment. Zillow home values average $592.5K, reflecting the desirability of this prime downtown location. Attractions like the Seattle Waterfront, Pike Place Market, and an abundance of restaurants and nightlife make Belltown a top choice for tourists, ensuring high occupancy rates year-round.
98101: Downtown Seattle & Pike Place Market
- Gross Yield: 7%
- Annual Revenue: $43,948
- Zillow Home Value: $613.7K
This zip code encompasses the heart of Downtown Seattle, including the famous Pike Place Market and financial district. With a gross yield of 7% and annual revenue of $43,948, it offers excellent income potential in one of Seattle’s busiest areas. Zillow home values are higher, averaging $613.7K, but the consistent flow of tourists and business travelers provides strong rental demand. The proximity to major attractions, convention centers, and waterfront views make this area highly desirable for short-term rental guests.
98102: Eastlake & Capitol Hill
- Gross Yield: 6%
- Annual Revenue: $39,478
- Zillow Home Value: $710.7K
Zip code 98102 includes Eastlake and parts of Capitol Hill, neighborhoods known for their eclectic vibe, coffee culture, and views of Lake Union. The gross yield is 6%, with an annual revenue of $39,478, suggesting a reliable, albeit slightly lower, income stream. Zillow home values are $710.7K, reflecting the upscale nature of these neighborhoods. Capitol Hill’s vibrant nightlife, unique eateries, and cultural attractions, combined with Eastlake’s waterfront activities, draw a diverse group of short-term renters.
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98109: South Lake Union & Westlake
- Gross Yield: 5%
- Annual Revenue: $41,033
- Zillow Home Value: $749.7K
Zip code 98109 covers South Lake Union and Westlake, home to major tech companies like Amazon and the Museum of History & Industry. With a gross yield of 5% and annual revenue of $41,033, this area has high property values at $749.7K, but the consistent demand from business travelers and tourists makes it worthwhile. The bustling atmosphere of South Lake Union, combined with its scenic waterfront and proximity to downtown, ensures a steady flow of visitors throughout the year.
98122: Central District & Madison Valley
- Gross Yield: 5%
- Annual Revenue: $37,634
- Zillow Home Value: $834.2K
This zip code includes the Central District and Madison Valley, areas known for their diverse communities and a mix of historic and modern homes. The gross yield is 5%, and annual revenue is $37,634, with Zillow home values being the highest on this list at $834.2K. The Central District’s cultural history and Madison Valley’s boutique shopping and green spaces make these neighborhoods attractive for a mix of tourists and long-term visitors. The higher home values reflect the area’s growth and the demand for quality accommodations near downtown.
Conclusion
Seattle’s unique blend of urban and waterfront living offers lucrative opportunities for short-term rental investors. By focusing on these top-performing zip codes, you can tap into the city’s thriving tourism and business travel market while benefiting from property appreciation.
