Tacoma, WA · standard
ZIP Code 98406
Pierce County, Washington — Census ACS demographics, housing tenure, and business patterns, benchmarked against every US ZIP.
- 21,610
- 1,955/sq mi
- $104,264
- Median income
- $638,400
- Median home value
- 48.7%
- Bachelor's or higher
The verdict
Tacoma pairs an upper-quartile household income with top-decile home values, in a low-density, homeowner-dominated area.
- Top 16%
- household income, US ZIPs
- Top 8%
- home value, US ZIPs
- 1,955
- people per sq mi
- 61%
- owner-occupied homes
Source: U.S. Census Bureau ACS 5-Year Estimates (2019–2023). Percentiles rank ZIP 98406 against every reporting US ZIP.
ZIP code 98406 is classified by USPS as a standard delivery area and covers roughly 11.1 square miles in Tacoma, Pierce County, Washington. The area is home to 21,610 residents, producing a population density of 1,955 people per square mile, and falls within the Los Angeles time zone. These USPS and Census boundary values drive every downstream statistic on this page, including the benchmarks that compare 98406 against Washington and the nation.
On the economic side, the median household income for ZIP 98406 sits at $104,264 (15% above the Washington average), while per-capita income is $58,501. The poverty rate stands at 8.0% and the unemployment rate at 3.9%. On housing, the median home value is $638,400 (25% above the state average) with median rent at $1,764 per month, and 61.3% of occupied units are owner-occupied, a direct signal of whether 98406 behaves more like a homeowner neighborhood or a renter-heavy ZIP.
Education and household profile round out the picture: 48.7% of adults hold a bachelor's degree or higher, the median age is 41.7, and the average commute is 25 minutes. We also surface 10 nearby ZIP codes within roughly 10 miles and 6 additional ZIPs sharing Pierce County, so you can benchmark 98406 against its immediate geography rather than a national average alone. Every figure is sourced from the U.S. Census Bureau American Community Survey 5-Year Estimates, HUD Fair Market Rents, and FHFA Home Price Index data, no estimates, no proprietary scoring. Verify with HUD →
Top industries in ZIP 98406
Top 5 sectors by establishment count
Which industries have the most business establishments in ZIP 98406.
- Health care and social assistance
Health care and social assistance
89 establishments
- Accommodation and food services
Accommodation and food services
82 establishments
- Retail trade
Retail trade
72 establishments
- Other services (except public administration)
Other services (except public administration)
70 establishments
- Professional, scientific, and technical services
Professional, scientific, and technical services
60 establishments
What this shows Establishment counts come from the Census ZIP Code Business Patterns program, which counts physical business locations rather than employees or revenue.
Source: U.S. Census Bureau, American Community Survey 5-Year Estimates + ZIP Code Business Patterns + HUD FMR + FHFA HPI ACS demographics, ZBP business establishments, HUD Fair Market Rents, FHFA HPI for ZIP 98406, Tacoma, WA · 2023 Census ACS 5-Year Estimates use a rolling 60-month sample for stable small-geography estimates; ZBP updated annually; HUD FMR + FHFA HPI updated quarterly/annually.
Quick Facts
21,610
Population
11.1
Area (sq mi)
1,955
People / sq mi
Los Angeles
Time Zone
standard
ZIP Type
Who lives in ZIP 98406?
41.7
Median Age
48.0%
Male
52.0%
Female
4.6%
Foreign-Born
Hispanic or Latino is an ethnicity category from the Census Bureau and may overlap with other categories above.
Source: U.S. Census Bureau, ACS 5-Year Estimates (2023)
How much do residents earn?
$104,264
Median Household Income
+15% vs state
$58,501
Per Capita Income
8.0%
Poverty Rate
3.9%
Unemployment Rate
25.4 min
Mean Commute Time
How ZIP 98406 ranks nationally
Household income vs. every US ZIP code
Median household income — the full national distribution, with this ZIP marked
$104,264 Top 16% higher than 84% of 30,318 US ZIPs
Each bar is a $20K-wide band; taller bars hold more US ZIPs. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.
Source U.S. Census Bureau — ACS 5-Year Estimates · 2019–2023
Source: U.S. Census Bureau, ACS 5-Year Estimates (2023)
What is the education profile here?
Source: U.S. Census Bureau, ACS 5-Year Estimates (2023)
What does housing look like?
10,925
Total Housing Units
10,557
Occupied Units
368
Vacant Units
2.21
Avg Household Size
Occupancy Type
$638,400
Median Home Value
+25% vs state
$1,764
Median Rent
1963
Median Year Built
Source: U.S. Census Bureau, ACS 5-Year Estimates (2023)
How have home values changed over time?
FHFA House Price Index, annual appreciation data based on repeat sales and appraisals
+0.0%
YoY Change (2024)
367
HPI Index (2000 = 100)
+267%
Total Change Since 2000
Home values in ZIP 98406 have increased 0.0% over the past year (2024). Since 2000, this ZIP has seen +267% cumulative appreciation.
| Year | Annual Change | HPI Index |
|---|---|---|
| 2020 | +5.2% | 264 |
| 2021 | +16.8% | 308 |
| 2022 | +13.3% | 349 |
| 2023 | +5.0% | 366 |
| 2024 | +0.0% | 367 |
Source: Federal Housing Finance Agency (FHFA) House Price Index, All-Transactions, Five-Digit ZIP Codes (Developmental Index). Index base = 100 in year 2000. Data through 2024. ZIP codes with few transactions may show missing values.
What businesses operate in this ZIP?
Census Bureau data shows 543 business establishments in ZIP 98406, employing approximately 5,291 people with a combined annual payroll of $218,195,000.
543
Businesses
5,291
Employees
$218.2M
Annual Payroll
15
Industry Sectors
| Industry | Establishments | % of Total |
|---|---|---|
| Health care and social assistance | 89 | 16.4% |
| Accommodation and food services | 82 | 15.1% |
| Retail trade | 72 | 13.3% |
| Other services (except public administration) | 70 | 12.9% |
| Professional, scientific, and technical services | 60 | 11.1% |
| Real estate and rental and leasing | 38 | 7.0% |
| Construction | 37 | 6.8% |
| Finance and insurance | 29 | 5.3% |
| Administrative and support and waste management and remediation services | 20 | 3.7% |
| Arts, entertainment, and recreation | 11 | 2.0% |
| Wholesale trade | 10 | 1.8% |
| Information | 8 | 1.5% |
| Transportation and warehousing | 7 | 1.3% |
| Manufacturing | 5 | 0.9% |
| Educational services | 5 | 0.9% |
Source: U.S. Census Bureau, ZIP Code Business Patterns (ZBP), 2023. Employment figures may include noise for disclosure avoidance.
Nearby ZIP Codes
Want a side-by-side? Compare 98406 vs 98416 →
ZIP 98406 vs its nearest neighbors, by population
Resident population of this ZIP and the closest reporting ZIP codes within ~10 miles.
- 98499
Lakewood (98499)
29,750 residents
- 98466
Tacoma (98466)
26,944 residents
- 98409
Tacoma (98409)
22,989 residents
- 98405
Tacoma (98405)
22,851 residents
- 98406
Tacoma (98406)
21,610 residents
- 98407
Tacoma (98407)
19,885 residents
- 98467
University Place (98467)
14,728 residents
- 98403 7,713
Tacoma (98403)
7,713 residents
- 98402 6,356
Tacoma (98402)
6,356 residents
What this shows Among its immediate neighbors, ZIP 98406 ranks #5 by population — useful context the national average alone can't give.
ZIP 98406 vs its nearest neighbors, by median income
Median household income of this ZIP and the closest reporting ZIP codes within ~10 miles.
- 98407
Tacoma (98407)
$110,288 median income
- 98406
Tacoma (98406)
$104,264 median income
- 98466
Tacoma (98466)
$101,778 median income
- 98467
University Place (98467)
$91,354 median income
- 98403
Tacoma (98403)
$88,056 median income
- 98405
Tacoma (98405)
$75,946 median income
- 98409
Tacoma (98409)
$73,348 median income
- 98465
Tacoma (98465)
$73,226 median income
- 98499
Lakewood (98499)
$67,292 median income
What this shows By household income, ZIP 98406 ranks #2 of 9 neighboring ZIPs — local affluence varies block to block, not just metro to metro.
| ZIP Code | City | Population | Distance |
|---|---|---|---|
| 98416 | Tacoma, WA | 1,014 | 1.3 mi |
| 98407 | Tacoma, WA | 19,885 | 1.8 mi |
| 98465 | Tacoma, WA | 6,340 | 1.3 mi |
| 98405 | Tacoma, WA | 22,851 | 2.1 mi |
| 98403 | Tacoma, WA | 7,713 | 2.4 mi |
| 98466 | Tacoma, WA | 26,944 | 2.7 mi |
| 98409 | Tacoma, WA | 22,989 | 3.7 mi |
| 98402 | Tacoma, WA | 6,356 | 3.4 mi |
| 98467 | University Place, WA | 14,728 | 4.4 mi |
| 98499 | Lakewood, WA | 29,750 | 6.6 mi |
More ZIP Codes in Pierce County
Related Areas
Frequently Asked Questions
What county is ZIP code 98406 in? ▼
What is the population of ZIP code 98406? ▼
What is the median household income in ZIP 98406? ▼
What is the average home value in ZIP 98406? ▼
What is the demographic makeup of ZIP 98406? ▼
How many businesses are in ZIP code 98406? ▼
What are the main industries in ZIP code 98406? ▼
How have home values changed in ZIP code 98406? ▼
What is the education level in ZIP code 98406? ▼
What is the average commute time in ZIP 98406? ▼
What percentage of residents own vs. rent in ZIP 98406? ▼
What is the poverty rate in ZIP code 98406? ▼
ZIP Code Research Guides
Official Data Resources for Tacoma, WA
Verify and explore additional data for this area using these official government sources.
Read our methodology to see how this data is sourced, computed, and verified.