Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Massachusetts
Massachusetts Apartment Loans
Select Commercial arranges Massachusetts 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. On larger balances, see multifamily loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Massachusetts
Massachusetts apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Massachusetts commercial mortgages.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Massachusetts Apartment Loan Rates
Rates updated as of August 30, 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 30, 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 Massachusetts Apartment Loan Programs
As a broker we compare every program for your best-fit Massachusetts 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 Massachusetts Apartment Loan Market
Massachusetts is one of the most expensive apartment markets in the country and one of the tightest, and in 2026 it is doing something unusual: values are rising while rents are not. Boston multifamily traded at an average of $441,514 a unit through April 2026, up about 14% over the year, even as transaction volume fell roughly 26% to $586 million. Fewer deals, at higher prices per unit. That is what a market with almost no supply and a lot of capital chasing it looks like.
Occupancy is high and rents are flat to slightly negative. Stabilized occupancy across the Boston market ran 95.6% as of March 2026, down about 80 basis points over the year. Average asking rent on a trailing three-month basis through April was about $2,876, down 0.6% year over year, which trailed the national pace. At the city level, average rent across professionally managed buildings of fifty units and up was $3,716 as of August 2026, down 2.3%, with Worcester at $2,078 and up 1.1%. Those two figures measure different geographies, so do not read them against each other.
Supply is not the issue here. Only 499 units delivered across the Boston market through April 2026, against 13,400 units under construction, which in a market this size is a modest pipeline relative to demand. Massachusetts does not have a supply problem. It has a cost problem, and the cost is concentrated in what it takes to operate a building here rather than in what it takes to fill one.
Across Massachusetts 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.
Massachusetts Markets We Finance
Greater Boston dominates the state, but the gap between it and everywhere else is wide enough that a Massachusetts apartment mortgage in Worcester or Springfield is a different conversation entirely from one inside Route 128.
Boston and the inner suburbs
The most expensive apartment market in the state and among the most expensive anywhere, with average pricing near $441,514 a unit and stabilized occupancy of 95.6%. Cambridge, Somerville, Brookline and Newton trade alongside the city itself on a life science, university and hospital employment base that is unusually resilient. Much of the stock is pre-war triple-decker and walk-up product, which means building condition, systems and any open code items carry real weight in the property condition report. Agency, bank and life company capital all compete here, and Boston apartment loan rates on a stabilized building with a clean rent roll are as sharp as anywhere in New England.
Boston apartment loans · Boston commercial
Worcester and central Massachusetts
The clearest value play in the state. Worcester average rent of about $2,078 was up 1.1% over the year, well ahead of Boston’s direction, on a basis per unit far below the eastern part of the state. Healthcare, higher education and biomanufacturing have broadened the employment base considerably over the last decade, and commuter rail access to Boston supports demand without Boston pricing. Regional banks and credit unions compete hard for apartment building loans here.
The Merrimack Valley and the North Shore
Lowell, Lawrence, Haverhill, Lynn and Salem carry dense, older mill-city stock at a materially lower cost per unit than Greater Boston, with occupancy that has historically held up well. These are markets where an apartment complex loan is sized on debt service coverage rather than on loan to value, and where a documented capital plan on hundred-year-old buildings is worth more proceeds than a slightly better rate.
Springfield, the Cape and the South Coast
Springfield and the Pioneer Valley run on healthcare, education and government employment at the lowest basis in the state. New Bedford and Fall River are similar. The Cape and Islands are a different animal again, with a seasonal economy where a lender underwrites year-round occupancy rather than peak-season rents, and where the shoulder seasons decide the file.
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 Massachusetts city, the link goes to our commercial mortgage page for that market.
Massachusetts Rent Rules and the Security Deposit Trap
Massachusetts prohibits rent control by statute, and the exception is written so tightly that it has never been usable. The Rent Control Prohibition Act, adopted by ballot in 1994, provides that no city or town may enact, maintain or enforce rent control of any kind. A municipality can technically adopt the act and then regulate rents, but only if compliance becomes entirely voluntary after six months, only if the regulation excludes owners holding fewer than ten units and properties above a fair market rent threshold, and only if the municipality compensates owners out of general tax revenue for the difference between market rent and controlled rent. In other words the town, not the owner, has to pay for it. Proposals to allow local rent stabilization resurface in the legislature regularly, and a lender will ask about the current position, but as things stand there is no statutory ceiling on your rent growth in Massachusetts.
The security deposit law is where out-of-state owners get hurt. This is the strictest deposit regime in the country and it is worth reading carefully before you close on a Massachusetts apartment building, because the penalties are real and they are automatic.
At the start of a tenancy a landlord may collect only four things: the first month’s rent, the last month’s rent at the same rate, a security deposit of no more than one month’s rent, and the cost of installing a new lock. Nothing else. The deposit must then be held in a separate interest-bearing account at a bank located in Massachusetts, in a way that keeps it beyond the reach of your creditors. The tenant is owed 5% annual interest, or whatever the account actually earned if less, paid out every year, and if you are thirty days late paying it the tenant may deduct it from rent. You must give a signed receipt within thirty days showing the amount, the date, the bank and the account, and a separate written statement of the condition of the premises within ten days of the tenancy starting, which the tenant may respond to with their own list.
Get any of that wrong and the exposure is three times the deposit, plus 5% interest, plus court costs and the tenant’s attorney fees. On a hundred-unit building with deposits held incorrectly, that is not a nuisance number. Buyers acquiring an existing Massachusetts property should treat the seller’s deposit handling as a diligence item in its own right, because the obligation follows the building, and lenders on larger files increasingly ask how deposits are held.
None of this makes a Massachusetts apartment complex harder to finance. It makes the operating side more procedural than most states, and it is a genuine argument for local property management if you are buying from out of state.
Refinancing a Massachusetts Apartment Building
Massachusetts refinances in 2026 are being helped by something unusual: values have held up better than rents. With average pricing near $441,514 a unit and up about 14% over the year, many owners are refinancing into a stronger valuation than the one their acquisition loan was written against, even though their rent roll has been flat. That is the reverse of the position in most of the Sun Belt right now, and it means proceeds are more likely to be limited by debt service coverage than by loan to value.
Which puts the expense line at the center of the file. Start with the current rent roll and twelve months of operating statements, then look hard at what has happened to insurance, utilities, water and sewer, and snow and grounds since your last financing. In a market where rent growth is close to zero, expense control is the only lever left on net operating income, and it is what a Massachusetts underwriter will spend the most time on.
Then the building. Much of the stock here is a century old. Roofs, heating systems, electrical service, masonry and any open code or sanitary code items are priced into the property condition report rather than overlooked. Owners who arrive with three clean years of statements and a funded capital plan consistently out-borrow owners with an identical building and a thin file.
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 take an extension from the incumbent. Cash-out is available on most programs where the equity supports it, and given how far per-unit values have moved, more Massachusetts owners have available equity than realize it.
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. Massachusetts apartment loans start at $1,500,000, whether it is a nine-unit triple decker in Worcester or a mid-rise in Greater Boston.
Massachusetts Multifamily Financing
Apartment loan and multifamily loan are the same debt on the same asset: a building with five or more residential units. We arrange it across Massachusetts, from a small triple decker portfolio to an institutional Boston mid-rise, and the terminology has no bearing on the underwriting.
Loan size decides who competes. Smaller Massachusetts balances usually price best with regional banks, credit unions and the agency small-balance programs, where knowing the neighborhood and the building stock counts for a great deal. Larger balances open the field to 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.
Massachusetts multifamily lenders concentrate on two things: the condition of old buildings and the discipline of your operating expenses, since rent growth is doing very little work at the moment. Document both. 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.
Massachusetts Apartment Loan Types We Serve
We arrange financing across Massachusetts 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 Massachusetts
We arrange apartment loans throughout Massachusetts, not only in Greater Boston. Springfield, Lowell, Lawrence, New Bedford, Fall River, the Merrimack Valley and the Cape are financed through the same agency, bank and credit union programs, and a well-occupied building outside Route 128 often supports more leverage than its owner expects.
For larger balances see our Massachusetts multifamily loans. For office, retail, industrial and owner-occupied property see Massachusetts 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 Massachusetts
As a full-service commercial mortgage broker, we arrange Massachusetts 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 Massachusetts Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on Massachusetts 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
Massachusetts City Spotlights: 2026 Apartment Market Notes
Beyond the major metros, we finance apartment buildings across Massachusetts. Current market notes for cities where borrowers ask us to lend:
- Worcester: median 1-bedroom rent near $1,800, up 8% year over year (Zumper, August 2026), one of the stronger rent-growth markets in New England.
- Springfield: median 1-bedroom rent about $1,350, up 4% year over year (Zumper, August 2026), with steady, affordable fundamentals.
National baseline for context: the U.S. median rent was $1,388 in July 2026, down 1.1% year over year, with rental vacancy near 7.2% (national rent report, July 2026). Each city above links to our local commercial mortgage page, and we finance 5+ unit apartment properties in every Massachusetts market from $1,500,000.