Lakota is a great family area to live in Federal Way. The homes are either literally right next to Dumas Bay on Puget Sound or next to a baseball and football field. Not only that, there is also a hospital in the close vicinity. Homes in this neighborhood can either be very expensive, or very affordable, depending on if you choose to live on the waterfront or not. There are only a handful of homes for sale in Lakota Federal Way.