Colorado Apartment Loan Rates
| CO Apartment Loan Rates Less Than $6 Million | Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Apartment Loan 5 Yr Fixed | 5.73% | Up to 80% | |
| Apartment Loan 7 Yr Fixed | 5.73% | Up to 80% | |
| Apartment Loan 10 Yr Fixed | 5.79% | Up to 80% | |
*Rates start as low as the rates stated here. Your rate, LTV, and amortization will be determined by underwriting.
Want a personalized quote? Click here to request a customized loan quote for your Colorado apartment property.
Need a multifamily loan over $6 million? Visit our Colorado multifamily loan page. For other commercial property types, explore our Colorado commercial mortgage options. To compare all rates nationwide, see commercial mortgage rates.
2026 Colorado Apartment Loan Market Overview
Entering 2026, Colorado presents a more transitional apartment environment than some of the tighter coastal and Midwest markets. For borrowers evaluating apartment loans, the state still offers long-term renter demand and meaningful barriers to homeownership, but near-term performance is being shaped by elevated vacancy in Denver and a market that is still absorbing recent development activity. Even so, the sharp slowdown in new deliveries should create a more stable backdrop for apartment building financing as 2026 moves forward.
Denver Sets the Tone for Colorado Apartment Loans
Denver continues to define much of the statewide apartment story in Colorado. In 2026, the metro is projected to add about 8,000 jobs, deliver roughly 6,000 units, post vacancy near 6.0%, and finish the year with average effective rent around $1,825 per month. For borrowers seeking an apartment building loan, Denver remains the key reference point for how supply, demand, and rent performance are expected to interact across the state.
Construction Is Falling Meaningfully in Colorado
One of the most important shifts for apartment lenders in Colorado is the pullback in deliveries. Denver is expected to bring more than 3,000 fewer units online than in 2025, with inventory growth of about 1.7%, roughly half the past decade's average. That lower delivery volume should help existing apartment properties compete more effectively in 2026.
Rent Improvement Returns After Prior Softness
Colorado's rent outlook in 2026 is tied directly to Denver. The metro's average effective rent is projected to rise about 2.1% to approximately $1,825 per month as lease-up concessions at recently delivered properties begin to phase out. That gives borrowers pursuing apartment building financing a somewhat firmer rent backdrop than they saw over the prior two years.
Vacancy Still Requires Careful Underwriting
Colorado still enters 2026 with a softer occupancy profile than many top-ranked apartment markets. Denver vacancy is projected near 6.0%, which keeps underwriting discipline important for any apartment loans tied to lease-up risk, rent growth assumptions, or heavily concession-driven properties. At the same time, fewer completions should help limit additional vacancy pressure as the year progresses.
2026 Colorado Apartment Loan Market Forecast
- Employment: Denver is projected to add about 8,000 jobs in 2026.
- Construction: Denver is projected to deliver about 6,000 units, down by more than 3,000 units from 2025.
- Vacancy: Denver vacancy is projected near 6.0%.
- Rent: Average effective rent is projected near $1,825, with annual growth of about 2.1%.
For investors comparing apartment loans in Colorado, 2026 looks more like a market normalization story than a broad statewide surge. Denver remains the anchor, with modest job growth, much lower construction, and improving rent trends helping offset still-elevated vacancy. Together, those factors give apartment lenders a clearer framework for evaluating Colorado apartment opportunities.
2026 Denver Colorado Apartment Loan Market Overview
Denver is the primary driver of apartment loans in Colorado and remains the state's main apartment lending reference point. The city is home to approximately 715,000 residents with the broader metro area exceeding 2.9 million people. There are approximately 167,670 renter-occupied households in Denver, representing 51% of all occupied housing units as of March 2026. Current data points to a metro-wide vacancy rate of 7.6% as of late 2025, the highest in 16 years, an average apartment rent of $1,885 per month as of March 23, 2026, and a construction pipeline that is contracting sharply after a historic delivery cycle.
Apartment Loan Rates and Financing Conditions in Denver
Financing conditions for Colorado apartment loans remain active in Denver in 2026, particularly for stabilized assets with realistic operating assumptions and strong occupancy history. The metro delivered approximately 125,000 units over the past decade, roughly one-third of the area's total inventory, creating near-term vacancy pressure that lenders are carefully underwriting around. The median home value in Denver is approximately $565,000 as of February 2026, keeping a meaningful share of the workforce in the rental market. For borrowers seeking an apartment building loan in Denver, underwriting centers on submarket selection, asset vintage, and the degree to which concessions have been normalized at the property level.
Key Market Trends Driving Apartment Demand in Denver
Denver is moving through a supply-driven reset period, but underlying demand fundamentals remain intact. Renters in the 25 to 34 age group make up the largest share of the Denver renter pool at 39%, providing a durable long-term demand base. Renters holding bachelor's degrees or higher make up approximately 51% of the renter population, one of the highest educated renter bases among major Colorado markets. New construction starts are declining sharply, with approximately 50,000 units in the pipeline but an estimated 20,000 unable to break ground as of early 2026, pointing toward meaningful supply relief by 2027. These improving dynamics continue to attract apartment lenders evaluating Colorado's largest market for long-term positioning.
Average Rent Levels and Unit Pricing in Denver in 2026
As of March 23, 2026, the average apartment rent in Denver is $1,885 per month, down 2.61% from $1,936 the prior year. By unit type: studios average $1,430/month, one-bedrooms average $1,704/month, two-bedrooms average $2,188/month, and three-bedrooms average $2,809/month. Approximately 40% of all Denver rentals are priced between $1,501 and $2,000 per month. The Cherry Creek submarket commands the highest rents in the city at approximately $2,963/month. These rent levels support underwriting for Colorado apartment loans on stabilized assets where occupancy is consistent and concessions are factored into operating projections.
Denver Apartment Supply, Demand, and Vacancy in 2026
Metro Denver reached a vacancy rate of 7.6% in late 2025, the highest level since 2009, driven by approximately 34,000 empty units following a historic construction cycle. New deliveries are projected near 6,000 units in 2026, down by more than 3,000 units from 2025, signaling the beginning of meaningful supply relief. Older properties built in the 1970s are experiencing the highest vacancy at approximately 8.4%, while newly built communities filled faster in 2025 than any year outside of 2021. For borrowers pursuing apartment building financing in Colorado, stabilized assets in supply-constrained submarkets and workforce housing properties are offering the most predictable underwriting profiles in the current environment.
Apartment Investment Opportunities in Denver in 2026
Investors pursuing apartment loans in Denver in 2026 are targeting stabilized assets with improving rent collections, value-add acquisitions at adjusted pricing, and workforce housing properties where demand is more insulated from luxury oversupply. The average rent across all property types stood at approximately $1,754 per month as of early 2026, providing a realistic underwriting baseline for new acquisitions. Suburban submarkets with lower new construction exposure are outperforming the urban core on both vacancy and rent stability. For Colorado apartment lenders evaluating the state's largest market, Denver's contracting pipeline, young renter demographic, and long-term population base continue to support a constructive long-term outlook for apartment building loans in the metro.
2026 Colorado Springs Colorado Apartment Loan Market Overview
Colorado Springs is an important supporting market for apartment loans in Colorado and the state's second-largest city. The city has a population of approximately 493,554 residents as of 2024, with a median household income of approximately $84,818 and a median owner-occupied home value near $452,600. There are approximately 167,000 renter-occupied households across the metro area, supported by a diverse economy anchored in military installations, aerospace, defense, healthcare, and technology. Current data points to an average apartment rent of $1,496 per month as of March 23, 2026, roughly 21% below the Denver average, making Colorado Springs one of the more accessible markets for Colorado apartment building loans.
Apartment Loan Rates and Financing Conditions in Colorado Springs
For borrowers seeking an apartment building loan in Colorado Springs, the market offers a range of financing scenarios across conventional apartment properties, workforce housing, and stabilized rental communities. Lower acquisition costs and a more moderate rent structure relative to Denver support different underwriting profiles and can produce stronger initial cash-on-cash returns for investors pursuing Colorado apartment loans. Colorado Springs attracts renters priced out of Denver's tightest neighborhoods, with the two cities less than 70 miles apart on I-25, providing a steady demand pipeline that supports lender confidence on stabilized assets.
Key Market Trends Driving Apartment Demand in Colorado Springs
Colorado Springs adds an important demand layer to the statewide apartment market by combining a large military renter base with consistent in-migration from higher-cost Colorado markets. Peterson Space Force Base, Fort Carson, and Schriever Space Force Base collectively represent one of the largest military employment concentrations in the country, producing a stable, high-turnover renter pool that supports consistent occupancy across the city. Renters in the 25 to 34 age group make up the largest share of the market, and the city's lower cost of living relative to Denver continues to attract younger households and remote workers. These dynamics make Colorado Springs an appealing market for apartment lenders evaluating secondary Colorado opportunities.
Average Rent Levels and Unit Pricing in Colorado Springs in 2026
As of March 23, 2026, the average apartment rent in Colorado Springs is $1,496 per month, down 2.94% from $1,541 the prior year. By unit type: studios average $998/month, one-bedrooms average $1,326/month, two-bedrooms average $1,591/month, and three-bedrooms average $2,011/month. Approximately 40% of all Colorado Springs rentals are priced between $1,001 and $1,500 per month, reflecting a predominantly workforce-oriented rental base. The Banning Lewis Ranch submarket commands the highest rents in the city at approximately $3,020/month for one-bedroom units. These rent levels support practical underwriting for apartment building financing where stable occupancy and lower acquisition costs drive returns.
Colorado Springs Apartment Supply, Demand, and Vacancy in 2026
Colorado Springs has a more moderate supply pipeline than Denver, providing a more balanced supply-and-demand environment for borrowers seeking Colorado apartment loans on stabilized properties. The city's median home value of approximately $452,600 continues to keep a meaningful share of households in the rental market, particularly younger renters and military families who prefer flexibility over ownership. Two-bedroom units make up the largest share of the rental inventory at approximately 38% of all units, reflecting the city's family-oriented and military household demographic. For borrowers pursuing apartment building financing, Colorado Springs offers a lower-risk entry point relative to the oversupplied Denver market in 2026.
Apartment Investment Opportunities in Colorado Springs in 2026
Investors using apartment loans in Colorado Springs in 2026 are drawn to the city's large military renter base, solid median household income of approximately $84,818, and more moderate rent and acquisition costs compared with Denver. Value-add acquisitions, stabilized workforce housing, and properties near military installations and major employment corridors on the north side of the city are generating the strongest investor interest. For Colorado apartment lenders evaluating the state beyond Denver, Colorado Springs offers a distinct demand profile, a lower vacancy risk tied to military occupancy, and a consistent household formation rate that supports long-term performance for apartment building loans across the metro.
2026 Aurora Colorado Apartment Loan Market Overview
Aurora is an important supporting market for apartment loans in Colorado and the state's third-largest city. The city has a population of approximately 411,293 residents as of 2026, growing at approximately 1% annually, with a median household income of approximately $88,368 and a median home value near $477,794 as of early 2026. There are approximately 52,603 renter-occupied households in Aurora, representing 37% of all occupied housing units as of January 2026. Current data points to an average apartment rent of $1,644 per month as of January 17, 2026, sitting between Colorado Springs and Denver in the Colorado apartment loan market and making Aurora a practical mid-tier underwriting reference point for the state.
Apartment Loan Rates and Financing Conditions in Aurora
For borrowers evaluating an apartment building loan in Aurora, the market supports a broad range of financing scenarios across conventional rental housing and neighborhood-level apartment demand. As part of the greater Denver metro area, Aurora benefits from lenders already active in Colorado's main population corridor while offering lower acquisition costs than Denver proper. Average rents declined approximately 5.54% year-over-year as of January 2026, consistent with the broader Denver metro supply cycle, but Aurora's lower price basis and median household income of $88,368 continue to support practical underwriting for Colorado apartment loans on stabilized workforce assets.
Key Market Trends Driving Apartment Demand in Aurora
Aurora adds significant depth to the statewide apartment market by combining a large and growing population base with a diverse, family-oriented renter demographic. Approximately 55% of all Aurora rentals are family households, and 36% of rental homes include children under the age of 18, reflecting a stable, longer-term renter base that tends to support consistent occupancy. The city's racial and ethnic diversity, with residents representing a wide range of backgrounds, mirrors broader Denver metro trends and strengthens the long-term demand case. Renters in the 25 to 34 age group make up the largest share of Aurora's renter pool at 29%, followed closely by the 35 to 44 age group at 22%. These fundamentals continue to attract apartment lenders evaluating Colorado's Front Range corridor.
Average Rent Levels and Unit Pricing in Aurora in 2026
As of January 17, 2026, the average apartment rent in Aurora is $1,644 per month. By unit type: studios average $1,217/month, one-bedrooms average $1,425/month, two-bedrooms average $1,808/month, and three-bedrooms average $2,539/month. Approximately 42% of all Aurora rentals are priced between $1,501 and $2,000 per month, reflecting a predominantly workforce-oriented rental base. The Tollgate Crossing submarket commands the highest rents in the city at approximately $2,198/month. These rent levels support underwriting for apartment building financing in Colorado where stable occupancy and moderate acquisition costs drive the return profile.
Aurora Apartment Supply, Demand, and Vacancy in 2026
Aurora carries a more moderate supply pipeline than central Denver, providing a more balanced environment for borrowers seeking Colorado apartment building loans on stabilized properties. The city needs an estimated 15,786 new units over the next six years to keep pace with projected growth and address existing housing shortages, signaling strong long-term structural demand. Two-bedroom units make up the largest share of the rental inventory at approximately 39% of all units, consistent with the city's family household profile. The median home value of approximately $477,794 continues to keep a meaningful share of households in the rental market, particularly younger families and mid-income workers within the Denver metro corridor.
Apartment Investment Opportunities in Aurora in 2026
Investors pursuing apartment loans in Aurora in 2026 are drawn to the city's large and growing population, solid median household income of $88,368, family-oriented renter base, and acquisition costs that are meaningfully lower than Denver proper. Value-add acquisitions in older 1970s and 1980s vintage stock and stabilized workforce housing in established neighborhoods are generating consistent investor interest. For Colorado apartment lenders evaluating the Front Range beyond Denver, Aurora offers a distinct demand profile rooted in family household formation, population growth, and a structural housing need that supports long-term performance for apartment building loans across the metro.
Why Choose Select Commercial for Apartment Loans
What sets Select Commercial apart from traditional lenders and large banks? In this short video, we highlight the key reasons apartment building investors choose to work with us for Colorado apartment loans between $1.5 million and $6 million. We also actively finance multifamily loans exceeding $6 million.
Here’s what the video touches on:
- No upfront application or processing fees
- Fast written pre-approvals often within 24 hours
- Access to a wide range of apartment lenders, not just one bank
- Loan structures tailored to your property and investment goals
Apartment Property Types We Finance in Colorado
At Select Commercial, we arrange financing for a wide range of Colorado apartment buildings, from smaller 5+ unit walkups to large portfolios of rental properties. Whether your property is urban, suburban, or mixed-use, we can help you secure the right loan structure based on your investment goals.
- Urban mid-rise and high-rise apartment buildings
- Suburban garden-style apartment complexes
- Small apartment buildings with 5+ units
- Mixed-use properties with residential and limited commercial space
- Underlying co-op apartment building loans
- Portfolios of small apartment or single-family rental properties
- Stabilized buildings with strong cash flow and rent history
If you're not sure whether your property qualifies, contact us for a free quote and we'll review your deal and let you know within 24 hours.
Recent Apartment Loan Closings
Why Colorado Borrowers Choose Select Commercial
Thousands of apartment building investors trust Select Commercial for our direct, transparent approach and proven expertise in the Colorado apartment loan market. We're not just brokers, we provide personalized service, fast answers, and access to top institutional lenders without the bureaucracy of traditional banks.
- Over 30 years of apartment loan experience with a national platform
- No upfront fees and fast pre-approvals, often within 24 hours
- Direct access to top lenders offering aggressive terms
- Dedicated support from quote to closing
Want to see why so many clients return to us for their next deal? Start with a free quote – we'll review your scenario and respond quickly.
Our Reviews
Latest Expert Insights from Stephen A. Sobin
Stephen A. Sobin, the president of Select Commercial Funding LLC, is a renowned expert in the field of multifamily financing. His insights and perspectives are regularly sought by leading industry publications. Here are his latest contributions that highlight his deep understanding of the multifamily financing landscape and his commitment to providing clear, insightful analysis on key industry issues.
Navigating Opportunity, Risk as 2025 Winds Down
In an article for Commercial Property Executive titled "Navigating Opportunity, Risk as 2025 Winds Down", Sobin explains as we head into the final stretch of 2025, the commercial real estate industry stands at a pivotal moment. After several years of upheaval—from pandemic disruptions to aggressive Federal Reserve rate hikes and lasting shifts in how people live and work—the sector is entering a new phase.
Why Lower Rates Haven't Fixed Commercial Real Estate
In an article for Wealth Management titled "Why Lower Rates Haven't Fixed Commercial Real Estate", Sobin explains that even as the Federal Reserve has begun cutting rates and borrowing costs should be falling, the commercial real estate sector remains locked in a frustrating stalemate. For high-net-worth investors trying to time the market, he emphasizes that understanding this disconnect requires looking beyond the headlines.
Why the Fed Rate Cut’s a Game Changer for CRE
In an article featured in Multi-Housing News, Stephen Sobin highlighted that after months of speculation and market anticipation, the Federal Reserve finally pulled the trigger last week, cutting the federal funds rate by 25 basis points to 4.00 to 4.25 percent. read the full article.
Inflation's Current Impact on Apartment
In an article featured in Multi-Housing News, Sobin explains how commercial mortgage rates continue to challenge investors, with elevated inflation depressing real estate market activity. Read the full article.
Will the July Jobs Report Pressure the Fed to Act?
Sobin noted in Multi-Housing News that unemployment hit a three-year high and job creation slowed significantly, factors that could push the Fed to reconsider future rate hikes. Read the full article.
Persistent Inflation and Its Effects on CRE
In an article featured in Multi-Housing News, Stephen Sobin highlighted that while inflation is still a challenge for the Federal Reserve, there are many positive signs for the commercial real estate industry. The headline Consumer Price Index rose 3.2 percent for the year ended Feb. 29, a figure 20 basis points lower than the Dec. 31, 2023, rate. read the full article.
Commercial Spotlight: Mid-Atlantic Region In this four-state powerhouse, smaller metros are thriving.
In a feature in Scotsman Guide, the Mid-Atlantic Region's real estate dynamics are explored, highlighting its resilience and growth amidst the pandemic.
Stephen Sobin of Select Commercial Funding LLC shared insights on the New York market's allure and the challenges buyers face. He noted the shift from primary urban areas to tertiary markets due to evolving preferences and financial conditions. For a deeper dive into Sobin's analysis, read the full article.
What the New Jobs Report Means for CRE
In an article titled "What the New Jobs Report Means for CRE" in Commercial Property Executive, Stephen Sobin shared his perspective on the latest jobs report and its implications for the Commercial Real Estate (CRE) sector. He highlighted the challenges posed by high interest rates and the prevailing uncertainty in the market. Sobin remarked, "Sellers aren’t selling, buyers aren’t buying... Everyone is waiting because no one knows what to expect." For a detailed analysis and more of Sobin's insights, read the full article.
Decoding "Junk Fees" in Rental Housing
In another latest contribution to Multi-Housing News, Sobin provided expert commentary in an article titled "What's Next for Junk Fees? The Industry Weighs In". He clarified the difference between legitimate fees collected for various third-party services and so-called "junk fees". Sobin emphasized the importance of borrowers understanding their rights in negotiating all loan terms and the obligation of lenders to disclose all fees.
Understanding the Impact of Federal Reserve's Decisions
In a recent article titled "How the Fed's Pause on Interest Rates Impacts Multifamily" published by Multi-Housing News, Sobin shared his expert insights on the Federal Reserve's decision to pause interest rate hikes. He accurately predicted that the Fed would not raise rates in June, citing recent bank failures and lingering concerns about a potential recession.
Stay tuned for more expert insights from Stephen A. Sobin on the evolving multifamily financing landscape.
Frequently Asked Questions About Colorado Apartment Loans
Colorado apartment loan rates vary depending on several factors such as loan-to-value ratio (LTV), property type, borrower experience, and market conditions. As of 2025, rates remain elevated due to ongoing inflation concerns, but borrowers with strong credit and high-quality assets can still find competitive pricing. Check our latest apartment loan rates for current updates.
Most lenders require a DSCR of at least 1.25, good borrower credit, net worth, liquidity, and experience. Loan-to-value ratios in 2025 typically range from 65% to 80%, due to elevated interest rates. Properties with strong occupancy and clean financials stand a better chance of qualifying.
Most lenders require 20% to 25% down for apartment loans in Colorado. Your loan-to-value ratio will be subject to the property's debt service coverage ratio.
A qualified broker like Select Commercial can present your loan to many different capital sources, including banks, credit unions, CMBS, agency lenders, and private funds. This increases the odds of approval and helps you secure the most favorable terms available.
The process starts with gathering financials like a rent roll, trailing 12-month income and expense statement, borrower resume, and net worth statement. A mortgage broker will analyze your documents and match you with the best lending program. Start with a Free Quote today.
Absolutely. While this page focuses on apartment loans under $6 million, Select Commercial also arranges smaller balance loans for qualified borrowers. Visit our multifamily loan page for options over $6 million.
Agency Small Balance Apartment Loan Programs
Select Commercial connects borrowers with top-tier agency small balance loan programs in addition to bank and private capital options. Featured programs include:
- Fannie Mae® Small Loan Program – For apartment properties with 5+ units and loan sizes from $1 million to $6 million
- Freddie Mac® Small Balance Loan (SBL) Program – Streamlined financing solutions up to $6 million
- Loans Over $6 Million – Explore large-balance apartment loan programs in Colorado
These agency-backed options offer competitive fixed rates, non-recourse terms, and simplified underwriting for qualified apartment investors.
Colorado Apartment Building Financing
Select Commercial provides apartment building financing and Colorado commercial mortgages throughout the state of Colorado including but not limited to the areas below.