Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Maryland
Maryland Apartment Loans
Select Commercial arranges Maryland apartment loans from $1,500,000, up to 80% LTV, with rates as low as 5.67%. We compare Fannie Mae, Freddie Mac, FHA, bank and bridge programs to fit your property. For larger balances, see multifamily loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Maryland
Maryland apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Maryland commercial mortgages.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Maryland Apartment Loan Rates
Rates updated as of August 29, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.07% | Up to 80% |
| 7 Year Fixed | 6.17% | Up to 80% |
| 10 Year Fixed | 6.25% | Up to 80% |
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.67% | Up to 75% |
| 7 Year Fixed | 5.77% | Up to 75% |
| 10 Year Fixed | 5.85% | Up to 75% |
- Streamlined underwriting for institutional multifamily
- Cash-out refinances are acceptable
- Interest-only and non-recourse options
- Minimum 1.25x debt-service-coverage ratio
Rates last updated August 29, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Compare Maryland Apartment Loan Programs
As a broker we compare every program for your best-fit Maryland apartment financing:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae Small Loan | 6.07% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac SBL | 6.15% | Up to 80% | $2M to $10M small balance |
| FHA / HUD | 6.12% | Up to 85% | Highest leverage, longest term |
| Bank / portfolio | 6.25% | Up to 75% | Flexible, value-add |
| Bridge | 9.00% | Up to 80% LTC | Reposition, lease-up |
Most apartment lenders look for a debt-service-coverage ratio (DSCR) of at least 1.25x.
2026 Maryland Apartment Loan Market
Maryland is two apartment markets with two different problems. The Washington suburbs are absorbing a federal employment contraction. Baltimore is not, but its rents are barely moving either.
The Washington side is the story of 2026. Montgomery and Prince George’s counties sit inside a metro where absorption in 2025 came to roughly 1,055 units against a five-year average above 12,300, and where metro occupancy dipped below the national average in early 2026 for the first time in about three years. Across the Potomac, asking rents in Arlington, Alexandria and Fairfax were all negative over the year to August 2026. Federal employment is the obvious driver and it does not stop at the state line, so a Maryland suburban file is underwritten with the same caution a Northern Virginia one is.
Baltimore is nearly flat. Average rent was about $1,653 as of August 2026, up 0.42% over the year, across professionally managed buildings of fifty units and up. The city runs on healthcare, higher education, the port and biosciences, with the university and hospital systems among the largest employers, and its stock is among the oldest in the country.
What that means for underwriting. Neither half of Maryland is a growth story right now, so files here are sized firmly on demonstrated in-place income with little credit for forward assumptions. Expense control and documentation do the work. Add to that a set of local rent rules that vary by jurisdiction, described below, and Maryland becomes a state where preparation matters more than usual.
Across Maryland we arrange apartment building loans from $1,500,000 through agency, bank, FHA and bridge programs. Rate and leverage follow the rent roll and the trailing twelve months of operating income, not your personal income.
Maryland Markets We Finance
Three distinct areas: the Washington suburbs, the Baltimore metro, and everything west and east of them. A Maryland apartment mortgage is structured to the jurisdiction as much as to the building, because the rules change between them.
Montgomery and Prince George’s counties
The Washington suburbs, and the part of Maryland most exposed to federal employment. Newer, larger and higher-basis product than Baltimore, with demand tied to federal agencies, contractors and the research and health institutions clustered along the I-270 corridor. With regional absorption well below its long-run average, an underwriter here is sizing on in-place income and giving very little credit to a recovery assumption. These are also the Maryland jurisdictions most likely to regulate rent increases directly, so establish the position before you contract.
Baltimore and the metro
Average rent of about $1,653 as of August 2026, up 0.42% over the year, on a much lower basis per unit than the Washington suburbs. Healthcare, higher education, the port and biosciences anchor demand. The defining underwriting feature is the building stock: Baltimore rowhouses and pre-war walk-ups are everywhere, much of it handsome and much of it carrying a century of systems. Roofs, masonry, boilers, electrical service and any open code items are priced into the property condition report rather than overlooked. Baltimore County and Howard County offer newer garden product at cleaner expense ratios.
Baltimore apartment loans · Baltimore commercial
Annapolis, Frederick and central Maryland
Frederick has grown steadily as a commuter alternative to both Washington and Baltimore at a materially lower basis than either, with biotechnology and manufacturing adding local employment. Annapolis runs on state government, the naval academy and tourism. Both are regional bank and credit union markets where a well-run building often clears more leverage than a comparable asset inside the Beltway.
Western Maryland and the Eastern Shore
Hagerstown and Cumberland run on distribution, healthcare and manufacturing at the lowest basis in the state. Salisbury and the shore communities add poultry processing, the university and a seasonal coastal economy where a lender underwrites year-round occupancy rather than peak-season rents. Coastal properties also carry wind and flood exposure that changes the insurance line, so the binder belongs with the rent roll.
Rent figures above are average asking rents across professionally managed buildings of fifty units and up as of August 2026. Where we do not yet have a dedicated apartment page for a Maryland city, the link goes to our commercial mortgage page for that market.
Maryland Rent Rules Change by Jurisdiction
Maryland does not regulate rent at the state level, but several of its jurisdictions do. Montgomery County and Takoma Park are the best known, and the question of whether a given county or municipality limits increases, and on what terms, is one you settle before you contract rather than at underwriting. This is closer to the New Jersey position than to a preemption state like Virginia next door, and out-of-state buyers frequently assume Maryland works the way Virginia does. It does not.
What differs between jurisdictions. Whether there is a cap at all. How it is calculated, usually against an inflation measure with a ceiling. Which buildings are covered, typically by age, size or construction date. Whether newly built property is exempt and for how long. Whether you may reset to market when a unit turns. And what notice or filing an owner must make. Each of those changes the income a lender will project, and the turnover question in particular can be the difference between a workable business plan and an unworkable one.
Because the terms are set locally and get amended, do not work from a summary. Confirm three things directly with the county or municipality: whether the building is covered, what the current permitted increase is, and what process applies if you need an increase above it. Bring that confirmation to the lender alongside your rent roll. A Maryland file that arrives with the jurisdiction question already answered moves materially faster than one that leaves it to be discovered by the lender’s counsel.
One further Maryland-specific point. Because the Washington suburbs are both the most regulated part of the state and the part most exposed to the federal employment contraction, those two factors compound. An underwriter looking at a Montgomery County building is applying a cap to rent growth in a submarket where rents are not growing anyway. That is not a reason to avoid the market, but it is a reason to build the file on expense control and documented in-place income rather than on any recovery thesis.
Refinancing a Maryland Apartment Building
Maryland refinances in 2026 are expense-line files. With rents flat in Baltimore and under pressure in the Washington suburbs, there is very little rent growth for a lender to credit, which means everything else has to be in order.
Start with the rent roll and the trailing twelve, then go through the expense side yourself before sending anything. Insurance, utilities, water and sewer, and payroll all deserve scrutiny, because expense control is the only remaining lever on net operating income when rents are static.
Then your position under any local rent rules. If the building sits in a jurisdiction that regulates increases, the lender will want evidence that the rents you are collecting are the rents permitted, and that any required filings are current. A property collecting above a permitted rent is a genuine underwriting problem rather than a technicality.
Then the building, particularly in Baltimore. Rowhouse and pre-war stock carries specific costs lenders know to look for: roof condition, masonry and pointing, boiler age, electrical capacity and any open code items. A documented capital schedule and evidence of completed work change the conversation materially and, on a lower-basis asset, are frequently worth more proceeds than a modest improvement in rate.
Then the note. Confirm the maturity date and whether prepayment is yield maintenance, a step-down or open, and start six to nine months ahead of a balloon so there is room to shop more than one lender rather than accept an extension. Cash-out is available on most programs where the equity supports it and coverage holds.
Send the rent roll and the trailing twelve and we will underwrite the building the way the lender will, then come back with written options inside 48 hours at no cost. Maryland apartment loans start at $1,500,000, whether it is a sixteen-unit building in Baltimore or a garden complex in Frederick.
Maryland Multifamily Financing
Apartment loan and multifamily loan describe the same debt: financing on a building with five or more residential units. We arrange it across Maryland, from a Baltimore rowhouse conversion to an institutional Montgomery County mid-rise, and the terminology has no bearing on the underwriting.
Loan size decides who competes, and in Maryland geography decides it alongside size. Baltimore and the western and shore markets are largely regional bank, credit union and agency small-balance territory. Larger Washington-suburb balances draw Fannie Mae, Freddie Mac, FHA, life companies and CMBS, and multifamily loan rates there are frequently tighter because the loan is big enough to securitize, at the cost of a heavier package: full appraisal, property condition report, environmental review, and sizing driven by net operating income, debt service coverage and debt yield.
Maryland multifamily lenders establish two things before almost anything else: which local rent rules apply, and what the expense line looks like in a market where rents are not doing the work. Answer both with documents and the file moves. Send the rent roll and the trailing twelve months and we will tell you which multifamily lenders are sharpest on your property, and what multifamily financing looks like at that size.
Maryland Apartment Loan Types We Serve
We arrange financing across Maryland for:
- Urban high-rise apartment buildings
- Suburban garden apartment complexes
- Small apartment buildings with 5+ units
- Underlying cooperative apartment loans
- Portfolios of small apartment and rental properties
- Mixed-use and other multifamily property
Apartment Loans Across Maryland
We arrange apartment loans throughout Maryland, not only in Baltimore and the Washington suburbs. Annapolis, Frederick, Hagerstown, Salisbury and the Eastern Shore communities are financed through the same agency, bank and credit union programs. Confirm the local rent rules wherever the building sits, because they differ by jurisdiction.
For larger balances see our Maryland multifamily loans. For office, retail, industrial and owner-occupied property see Maryland commercial mortgages, and nationwide we lend in most major U.S. cities.
Recent Apartment Loan Closings
A sample of apartment and multifamily loans we have arranged for investors nationwide.
Other Property & Loan Types We Finance in Maryland
As a full-service commercial mortgage broker, we arrange Maryland financing across every major property and loan type:
We consider commercial loan requests of all sizes, beginning at $1,500,000.
What Our Clients Say
“I am a veterinarian who purchased an existing practice. I was surprised to find a company that offered 100% financing at a good rate, with great terms and rates for medical office financing.”
Carol K. · Chicago, IL“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet Your Maryland Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on Maryland apartment loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up