PlainZIP

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 a densely settled ZIP (a standard USPS delivery area) in Tacoma, Pierce County, Washington, with 21,610 residents across 11.1 square miles, a density of 1,955 people per square mile, in the Los Angeles time zone.

ZIP 98406 lands in the middle-income range, with a median household income of $104,264 (15% above the Washington average), while per-capita income is $58,501. 8.0% of residents live below the poverty line, and the unemployment rate reads 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 solid share of residents have a four-year degree: 48.7% of adults hold a bachelor's degree or higher, the median age is 41.7, and the average commute is 25 minutes. A geography-based comparison follows: 10 ZIP codes within about 10 miles of 98406, plus 6 more within Pierce County, give a clearer read than the national average alone.

Every figure on this page is sourced from the U.S. Census Bureau American Community Survey 5-Year Estimates (including median rent) and the FHFA House Price Index, no estimates, no proprietary scoring. Verify with Census →

Top industries in ZIP 98406

Top 5 sectors by establishment count in Tacoma, WA

Which industries have the most business establishments in ZIP 98406.

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 · ZIP Code Business Patterns (ZBP) As of 2023

Source: U.S. Census Bureau, American Community Survey 5-Year Estimates + ZIP Code Business Patterns + FHFA HPI ACS demographics and median rent, ZBP business establishments, 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; 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

Neighborhood Scorecard
Get an A-F grade across income, safety, housing, rent, education, commute, and childcare for this ZIP code.
View Scorecard →

Who lives in ZIP 98406?

41.7

Median Age

48.0%

Male

52.0%

Female

4.6%

Foreign-Born

White 80.7%
African American 4.1%
Asian 3.1%
American Indian or Alaska Native 0.6%
Native Hawaiian or Pacific Islander 0.1%
Two or More Ethnicities 10.2%
Hispanic or Latino 4.2%

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

Tacoma, WA 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

$0–$20,000: 118 US ZIPs (0%). Below this entry. $20,000–$40,000: 1,573 US ZIPs (5%). Below this entry. $40,000–$60,000: 7,092 US ZIPs (23%). Below this entry. $60,000–$80,000: 9,980 US ZIPs (33%). Below this entry. $80,000–$100,000: 5,778 US ZIPs (19%). Below this entry. $100,000–$120,000: 2,855 US ZIPs (9%). This entry sits in this band. $120,000–$140,000: 1,362 US ZIPs (4%). Above this entry. $140,000–$160,000: 686 US ZIPs (2%). Above this entry. $160,000–$180,000: 364 US ZIPs (1%). Above this entry. $180,000–$200,000: 186 US ZIPs (1%). Above this entry. $200,000–$220,000: 324 US ZIPs (1%). Above this entry. This ZIP $0 $200K+ every reporting US ZIP, bucketed by value

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?

High School Graduate or Higher 66.8%
Bachelor's Degree or Higher 48.7%

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

Owner 61.3%
Renter 38.7%

$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.

residents

What this shows Among its immediate neighbors, ZIP 98406 ranks #5 by population - useful context the national average alone can't give.

Source U.S. Census Bureau · ACS 5-Year Estimates As of 2019–2023

ZIP 98406 vs its nearest neighbors, by median income

Median household income of this ZIP and the closest reporting ZIP codes within ~10 miles.

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.

Source U.S. Census Bureau · ACS 5-Year Estimates As of 2019–2023
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

98391 standard
Bonney Lake, WA
Pop: 44,309
98387 standard
Spanaway, WA
Pop: 43,173
98374 standard
Puyallup, WA
Pop: 37,360
98444 standard
Tacoma, WA
Pop: 33,956
98404 standard
Tacoma, WA
Pop: 32,086
98499 standard
Lakewood, WA
Pop: 29,750

Related Areas

Pierce County Tacoma, WA Washington

Frequently Asked Questions

What county is ZIP code 98406 in? ▼
ZIP code 98406 (Tacoma) is located in Pierce County, Washington. Pierce County contains multiple ZIP codes, see the full list at /counties/pierce-wa.
What is the population of ZIP code 98406? ▼
ZIP code 98406 in Tacoma, WA has a population of 21,610 according to the Census Bureau ACS 2023 estimates.
What is the median household income in ZIP 98406? ▼
The median household income in ZIP 98406 is $104,264, which is 37% above the national average of $76,288.
What is the average home value in ZIP 98406? ▼
The median home value in ZIP 98406 is $638,400, which is 130% above the national average of $278,155.
What is the demographic makeup of ZIP 98406? ▼
The largest racial group in ZIP 98406 is White at 80.7%. Hispanic or Latino residents make up 4.2% of the population.
How many businesses are in ZIP code 98406? ▼
ZIP code 98406 has 543 business establishments employing approximately 5,291 people, according to Census Bureau ZIP Code Business Patterns (ZBP) 2023 data.
What are the main industries in ZIP code 98406? ▼
The top industries by establishment count in ZIP 98406 are: Health care and social assistance (89), Accommodation and food services (82), Retail trade (72). There are 15 industry sectors represented in total.
How have home values changed in ZIP code 98406? ▼
According to the FHFA House Price Index, home values in ZIP 98406 increased by 0.0% in 2024. Since 2000, home values in this ZIP have appreciated by approximately 267%. This is a developmental index based on repeat sales and appraisal data from Fannie Mae and Freddie Mac.
What is the education level in ZIP code 98406? ▼
In ZIP code 98406, 66.8% of residents aged 25+ have a high school diploma or higher, and 48.7% hold a bachelor's degree or higher. These figures come from the Census Bureau ACS 5-Year Estimates (2023).
What is the average commute time in ZIP 98406? ▼
The mean commute time for workers in ZIP code 98406 is 25.4 minutes according to Census ACS data. The national average is roughly 26 minutes, so commuters here spend less time traveling to work than typical.
What percentage of residents own vs. rent in ZIP 98406? ▼
In ZIP code 98406, approximately 61.3% of occupied housing units are owner-occupied and 38.7% are renter-occupied, based on Census ACS 2023 data.
What is the poverty rate in ZIP code 98406? ▼
The poverty rate in ZIP code 98406 is 8.0% according to Census Bureau ACS 2023 estimates. This measures the percentage of the population living below the federal poverty threshold.

Read our methodology to see how this data is sourced, computed, and verified.