Sell Your Commercial Property In Tacoma, WA

Who rents in Tacoma

Tacoma anchors the Pierce County rental market. The 2020–2024 American Community Survey counts 222,758 residents and 93,033 occupied homes. Renters occupy 41,140 of them, or 44.2%. The median household income is $85,884.

Joint Base Lewis-McChord, just south of the city, is the largest single source of demand. The base reports a population of roughly 110,000, including about 40,000 active-duty service members, 60,000 family members and 15,000 civilian and contract employees. Not everyone lives on base. Many military households rent in Lakewood, University Place, Parkland and Tacoma itself, and permanent-change-of-station moves keep leasing active year-round. The base also notes that many people choose to retire in the area, which adds a longer-term renter and buyer pool.

Tacoma also draws renters priced out of King County. Tacoma’s median gross rent of $1,676 is about 83% of Seattle’s $2,030 in the same ACS release, and HUD’s FY2026 two-bedroom Fair Market Rent for Tacoma is $530 below the Seattle-Bellevue figure. For commuters willing to make the trip, that gap is the main reason to live here.

Rents and affordability

The ACS median gross rent, including utilities, is $1,676. HUD sets a Tacoma Fair Market Rent area separate from Seattle-Bellevue, and the FY2026 FMRs sit above the city median from one bedroom up. These figures set the base for Housing Choice Voucher payment standards and are a useful check against your own rent roll.

Tacoma renters are stretched. In the ACS, 52.7% of renter households spend 30% or more of income on rent, and 24.9% spend half or more. Both shares are well above Seattle’s, even though Tacoma rents are lower in dollars. For owners, that limits how far renewals can go and makes tenant relocation rules, covered below, more likely to come into play.

The apartment stock

Tacoma has 97,298 housing units, and ACS table B25024 shows 60.6% are detached single-family homes. Buildings with five or more units hold 27,892 units, or 28.7% of the stock. The breakdown is 5,796 units in 5–9 unit buildings, 5,990 in 10–19 unit buildings, 5,791 in 20–49 unit buildings and 10,315 in buildings of 50 or more, which is 10.6% of all homes. Duplexes through fourplexes add 7,101 units. The 5–49 unit range, where many private owners hold their buildings, accounts for 17,577 units.

The stock is old. Tacoma’s median year built is 1967, and older walk-ups are common in the Hilltop, Stadium District and around downtown. Buyers of buildings that age focus on roofs, plumbing, electrical and seismic risk, and they want records showing what has been replaced. Puyallup and University Place, both on our Tacoma page, sit in separate taxing districts with lower 2026 average levy rates than Tacoma, shown in the next section. Units with a certificate of occupancy issued within the past 12 years are exempt from the state rent cap, so those buildings follow different rent rules than older city stock.

Property taxes on apartment buildings in Pierce County

The Pierce County Assessor-Treasurer values apartments at market value, updates values every year and physically inspects each property at least every six years under RCW 84.41.041. Washington has no per-parcel assessment cap, so rising values carry into the tax base. Appeals go to the county board of equalization by July 1 or within 30 days after the value notice, whichever is later, or within a county-set window of up to 60 days, per RCW 84.40.038.

The county’s 2026 average tax rates put Tacoma (tax code area 005) at $10.87641605 per $1,000 of assessed value. Only Sumner and Bonney Lake are higher among the 23 cities and towns on the list. Nearby cities on our page are lower: Lakewood at $9.33565347, University Place at $9.784476194 and Puyallup at $9.815777556. Parkland is unincorporated and is taxed under its own tax code areas. At Tacoma’s average rate, a building assessed at $3 million owes about $32,629 a year. The full set of 2026 levy reports is published by the county.

Sellers usually pay Washington’s graduated real estate excise tax. For closings through December 31, 2026, the state portion is 1.10% up to $525,000, 1.28% up to $1,525,000, 2.75% up to $3,025,000 and 3.0% above. On a $3 million sale, the state portion is about $59,138, before local REET. The thresholds rise to $551,000, $1,551,000 and $3,051,000 on January 1, 2027.

Landlord rules: the state cap and Tacoma’s Landlord Fairness Code

Washington’s rent stabilization law, in effect since May 7, 2025, limits increases to 7% plus CPI or 10%, whichever is lower, with 90 days’ notice and no increase in the first 12 months of a tenancy, according to the Attorney General. Commerce set the cap at 9.683% for 2026 and 10% for 2027. Exemptions are listed in RCW 59.18.710, and RCW 35.21.830 still bars cities from adopting their own rent control.

Tacoma voters added another layer in November 2023 with Initiative Measure No. 1, the Landlord Fairness Code, which the council amended on December 9, 2025. Key provisions:

• Relocation assistance. A tenant who moves after an increase of 5% or more within 12 months can claim two months’ rent. Above 7.5%, it is two and a half months, and above 10%, three months. Failure to pay a valid request carries a penalty of at least three times the assistance owed.
• Increase blocked for poor conditions. A landlord cannot raise rent while in violation of health and safety protections or while a habitability repair request under RCW 59.18.060 is unresolved.
• Winter and school-year limits. Evictions are barred from November 15 to March 15, except for owners of four or fewer units in Tacoma, and there is a school-year defense for households with students or educators.
• Move-in costs. Total move-in fees cannot exceed the first month’s rent, most non-refundable fees are barred, and pet deposits are capped at 25% of a month’s rent.
• Penalties. Violations carry penalties of $500 up to five times the monthly rent, per violation.

The December 2025 change exempts some affordable housing providers, according to the Tacoma Housing Authority. Deposit refunds still follow RCW 59.18.280, which requires a statement within 30 days of move-out.

What this means if you own a building here

The relocation rule is the detail buyers in Tacoma focus on. Because the trigger is 5%, a renewal well under the state cap can still create a two-month payment if the tenant chooses to leave. Buyers will look at how increases were issued, whether relocation requests were paid, and whether any unit has an open repair request that would block an increase. Clean files support price. Timing matters too: if a sale depends on turning over units, the November 15 to March 15 eviction window can push that work into spring for larger owners.

Taxes and transfer costs also shape the deal. Tacoma’s average 2026 levy rate is more than a dollar per $1,000 above Lakewood’s, and with no assessment cap, a buyer will model taxes on the price paid. Before talking to buyers, work out your net operating income and test pricing with our cap rate calculator. If you plan to exchange into another property, the 1031 exchange calculator can help with timing. Skyline Capital buys 5+ unit buildings in Tacoma, Lakewood, Puyallup, University Place and Parkland, from stabilized to distressed. Our seller page explains how we make offers.