Massachusetts Apartment Loan Rates
| MA Apartment Loan Rates Less Than $6 Million | Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Apartment Loan 5 Yr Fixed | 5.76% | Up to 80% | |
| Apartment Loan 7 Yr Fixed | 5.79% | Up to 80% | |
| Apartment Loan 10 Yr Fixed | 5.82% | 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 Massachusetts apartment property.
Need a multifamily loan over $6 million? Visit our Massachusetts multifamily loan page. For other commercial property types, explore our Massachusetts commercial mortgage options. To compare all rates nationwide, see commercial mortgage rates.
2026 Massachusetts Apartment Loan Market Overview
Entering 2026, Massachusetts presents a high-income, supply-constrained apartment market anchored by the Boston metro. For borrowers evaluating apartment loans, the state benefits from strong employment drivers in healthcare, education, technology, and life sciences. Persistent renter demand combined with elevated construction costs and limited land availability supports apartment building financing strategies focused on long-term occupancy, premium rent levels, and durable cash flow.
Development activity across Massachusetts remains selective and concentrated in key urban and transit-oriented submarkets. While new deliveries continue, supply constraints and zoning limitations have kept vacancy relatively tight compared to national averages. For apartment lenders, this creates an underwriting environment centered on location quality, tenant income levels, and long-term rent durability rather than rapid expansion cycles.
Boston Anchors Massachusetts Apartment Loans
Boston remains the primary driver of apartment activity across Massachusetts. In 2026, the metro is projected to add approximately 30,000 jobs, deliver roughly 7,500 units, maintain vacancy near 5.0%, and reach average effective rent around $2,900 per month. For borrowers seeking an apartment building loan, Boston offers institutional scale, high renter incomes, and consistent demand across multiple submarkets.
Cambridge Reflects Innovation-Driven Demand
Cambridge represents one of the highest-demand apartment markets in the country, supported by universities and the life sciences sector. The city has a population of approximately 120,000, median household income near $120,000, median rent around $3,200, and median home value near $950,000. These fundamentals support strong occupancy and premium rent positioning.
Worcester Adds Growth and Relative Affordability
Worcester provides a more affordable alternative within Massachusetts while still benefiting from regional economic growth. The city has a population of approximately 205,000, median household income near $65,000, median rent around $1,700, and median home value near $400,000. This supports continued renter demand and investment activity across mid-tier apartment assets.
Rent Levels Reflect Income Strength and Supply Constraints
Massachusetts continues to exhibit elevated rent levels driven by high incomes and limited housing supply. Boston is projected near $2,900 per month, while Cambridge commands even higher pricing. Secondary markets such as Worcester provide more affordable options, allowing borrowers to structure apartment loans across both core urban and value-oriented investment strategies.
2026 Massachusetts Apartment Loan Market Forecast
- Employment: Boston is projected to add approximately 30,000 jobs.
- Construction: Boston is projected to deliver roughly 7,500 units.
- Vacancy: Vacancy is projected near 5.0%.
- Rent: Average effective rent is projected near $2,900 per month.
For investors comparing apartment loans in Massachusetts, 2026 reflects a market driven by income strength, supply limitations, and long-term demand. Boston provides the primary scale and liquidity, while Cambridge and Worcester offer complementary opportunities across premium and mid-tier apartment segments.
2026 Boston Massachusetts Apartment Loan Market Overview
Boston is the core apartment market in Massachusetts and supports strong demand for apartment loans due to its high-income renter base and institutional investment presence.
Boston Massachusetts Apartment Loan Rates and Financing in 2026
Financing remains active across stabilized and new assets, supported by strong lender competition and institutional capital.
Trends in the Boston Massachusetts Apartment Loan Market
Life sciences, education, and technology sectors continue to drive renter demand and support long-term leasing stability.
Boston Massachusetts Apartment Loan Rent Levels in 2026
Average rent is projected near $2,900.
Boston Massachusetts Apartment Loan Supply and Demand
Supply remains constrained relative to demand, supporting low vacancy and strong rent performance.
Opportunities for Apartment Investment in Boston Massachusetts
Investors focus on long-term appreciation and income stability in core urban submarkets.
2026 Cambridge Massachusetts Apartment Loan Market Overview
Cambridge offers one of the highest-demand apartment markets in the country, driven by innovation and institutional employment.
Cambridge Massachusetts Apartment Loan Rates and Financing in 2026
Lenders favor stabilized assets with premium rent levels and strong tenant profiles.
Trends in the Cambridge Massachusetts Apartment Loan Market
Life sciences and university-driven demand continue to support leasing activity.
Cambridge Massachusetts Apartment Loan Rent Levels in 2026
Median rent is approximately $3,200.
Cambridge Massachusetts Apartment Loan Supply and Demand
Supply remains limited due to high barriers to development.
Opportunities for Apartment Investment in Cambridge Massachusetts
Investors target premium assets with long-term rent durability.
2026 Worcester Massachusetts Apartment Loan Market Overview
Worcester provides a growing apartment market with more affordable rent levels relative to Boston.
Worcester Massachusetts Apartment Loan Rates and Financing in 2026
Financing remains favorable for mid-tier assets with stable rent performance.
Trends in the Worcester Massachusetts Apartment Loan Market
Population growth and regional spillover demand continue to support leasing activity.
Worcester Massachusetts Apartment Loan Rent Levels in 2026
Median rent is approximately $1,700.
Worcester Massachusetts Apartment Loan Supply and Demand
Supply remains balanced with steady absorption in expanding submarkets.
Opportunities for Apartment Investment in Worcester Massachusetts
Investors focus on growth potential and relative affordability within the state.
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 Massachusetts 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 Massachusetts
At Select Commercial, we arrange financing for a wide range of Massachusetts 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 Massachusetts Borrowers Choose Select Commercial
Thousands of apartment building investors trust Select Commercial for our direct, transparent approach and proven expertise in the Massachusetts 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 Massachusetts Apartment Loans
Massachusetts 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 Massachusetts. 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 Massachusetts
These agency-backed options offer competitive fixed rates, non-recourse terms, and simplified underwriting for qualified apartment investors.
Massachusetts Apartment Building Financing
Select Commercial provides apartment building financing and Massachusetts commercial mortgages throughout the state of Massachusetts including but not limited to the areas below.