DSCR Loans in Washington
Last updated: May 2026
Washington state offers the powerful combination of no state income tax and a robust, tech-driven economy anchored by Seattle's major employers. While the Seattle metro has higher entry prices and some cities have enacted local rent stabilization measures, Eastern Washington and mid-sized cities offer more accessible price points for DSCR investors.
Property Tax
0.87%
State Income Tax
None
Landlord Friendly
Moderate
Eviction Timeline
30-60 days
Property Taxes in Washington
Washington property tax rates vary notably by county. King County (Seattle) averages about 0.88%, Pierce County (Tacoma) around 1.05%, and Spokane County approximately 0.90%. The state caps property tax levy increases at 1% annually without voter approval.
Insurance Costs
Typical investment property insurance in Washington runs $1,450/yr. Earthquake risk from the Cascadia Subduction Zone and the Seattle Fault is a real consideration. Standard policies do not include earthquake coverage, and wildfire risk has grown in eastern Washington and the Cascade foothills.
Landlord-Tenant Laws
Washington is moderately landlord-friendly, though recent legislation has tipped the balance toward tenants. The state requires a 14-day notice for nonpayment, and evictions typically take 30 to 60 days. Some cities, including Seattle and Tacoma, have enacted "just cause" eviction requirements, and certain jurisdictions have explored or enacted rent stabilization measures.
Note: Washington has some form of rent control or rent stabilization in effect.
Top Investment Markets in Washington
Seattle
Tech giants (Amazon, Microsoft, Meta) and strong healthcare sector drive premium rents, though entry prices are high.
Tacoma
More affordable Pierce County alternative to Seattle with its own port economy, military presence (JBLM), and improving downtown.
Spokane
Eastern Washington's largest city with much lower home prices; significant in-migration from Seattle and Portland seeking affordability.
Vancouver (WA)
Across the river from Portland, OR: residents benefit from WA's no income tax while accessing Portland's job market and OR's no sales tax.
Olympia
State capital with stable government employment and growing demand from JBLM-adjacent military families.
DSCR Considerations in Washington
Zero state income tax is a meaningful DSCR advantage, especially for high-income investors who benefit from not reporting rental income to a state taxing authority. Eastern Washington (Spokane, Tri-Cities) offers significantly better cash-flow profiles than the Puget Sound region. Be sure to research local rent regulations city by city, as they vary within the state and can impact your income projections.
Run the numbers for Washington
Use our free DSCR calculator to see if your Washington investment property pencils out.
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