Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Michigan
Michigan Apartment Loans
Select Commercial arranges Michigan apartment loans from $1,500,000, up to 80% LTV, with rates as low as 5.87%. We compare Fannie Mae, Freddie Mac, FHA, bank and bridge programs to fit your property. Larger balances are covered on our multifamily loans page. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Michigan
Michigan apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Michigan commercial mortgages.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Michigan Apartment Loan Rates
Rates updated as of September 8, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.27% | Up to 80% |
| 7 Year Fixed | 6.33% | Up to 80% |
| 10 Year Fixed | 6.39% | Up to 80% |
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.87% | Up to 75% |
| 7 Year Fixed | 5.94% | Up to 75% |
| 10 Year Fixed | 5.99% | 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 September 8, 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 Michigan Apartment Loan Programs
As a broker we compare every program for your best-fit Michigan apartment financing:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae Small Loan | 6.20% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac SBL | 6.15% | Up to 80% | $2M to $10M small balance |
| FHA / HUD | 6.40% | Up to 85% | Highest leverage, longest term |
| Bank / portfolio | 6.35% | 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 Michigan Apartment Loan Market
The most important thing to understand about buying an apartment building in Michigan has nothing to do with rents. It is that your property tax bill after closing will almost certainly be higher than the seller’s, sometimes considerably, because Michigan resets the taxable value of a property when it changes hands. Underwriting off the seller’s trailing tax line is the single most common and most expensive mistake made on Michigan apartment deals, and it is set out in full further down this page.
Rents across the state are rising modestly and unevenly. Measured across professionally managed buildings of fifty units and up as of August 2026, average asking rents ran about $1,324 a month in Detroit, up 1.6% over the year; $1,623 in Grand Rapids, up 3.5%; $2,106 in Ann Arbor, up 1.0%; $1,241 in Lansing, up 3.3%; and $950 in Flint, up 4.9%. West Michigan and the state capital have been growing faster than the southeast.
Basis is the reason people lend here. Michigan cost per unit sits well below the national average across every market except Ann Arbor, which means an apartment loan in this state is generally sized on debt service coverage rather than on loan to value. It also means the stock is old. Roofs, boilers, windows and electrical carry real weight in the property condition report, and an owner with a documented capital plan consistently borrows better than one without.
Across Michigan 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.
Michigan Markets We Finance
Michigan is four apartment markets that have moved apart over the last decade. Southeast Michigan, west Michigan, the university towns and the smaller industrial cities each price and finance differently, and a Michigan apartment mortgage is structured to the market rather than to the state.
Detroit and southeast Michigan
The largest market in the state and the widest range of product, from downtown and Midtown conversions to post-war garden complexes across Macomb and Oakland counties. Detroit asking rents averaged about $1,324 a month as of August 2026, up 1.6% over the year, with Warren at $1,129 and Sterling Heights near $1,267. Basis per unit is among the lowest of any large American market, which keeps apartment building loans here coverage-driven rather than value-driven. Older stock and any open code or blight issues are read carefully, so bring the capital plan.
Detroit apartment loans · Detroit commercial · Warren · Sterling Heights
Grand Rapids and west Michigan
The strongest rent growth in the state, with Grand Rapids averaging about $1,623 a month and up 3.5% over the year. Healthcare, advanced manufacturing and a genuinely diversified employment base have made west Michigan the market where agency lenders compete hardest. New construction has been measured rather than aggressive, which has kept occupancy durable in existing buildings and makes a Grand Rapids apartment complex one of the more straightforward files in the state.
Grand Rapids apartment loans · Grand Rapids commercial
Ann Arbor and Lansing
Two university and government markets that behave nothing like the rest of Michigan. Ann Arbor is the most expensive rental market in the state at roughly $2,106 a month, supported by the university, the hospital system and a research economy, with supply constrained by geography and zoning. Lansing runs on state government and a second university at about $1,241 a month, up 3.3% over the year. Both markets have demand bases that do not track the industrial cycle, which lenders value.
Flint, Kalamazoo and the smaller cities
The lowest cost per unit in Michigan and the highest going-in yields, with almost no new construction competing against existing buildings. Flint averaged about $950 a month and posted the strongest percentage rent growth in the state at 4.9%, off a very low base; Kalamazoo ran near $1,332. These are regional bank, credit union and agency small-balance markets, and building condition drives the outcome more than the rent trend does.
Rent figures above are average asking rents across professionally managed buildings of fifty units and up, measured at city level as of August 2026, not metro-wide averages. Where we do not yet have a dedicated apartment page for a Michigan city, the link goes to our commercial mortgage page for that market.
Michigan Property Tax Uncapping: The Number Buyers Get Wrong
This is the most important thing on this page. Michigan caps how fast the taxable value of a property can rise, and then removes that cap when the property is sold. If you underwrite a Michigan apartment building off the seller’s tax bill, your first full year of ownership will not look like your model.
How the cap works. Every parcel carries two numbers. The state equalized value tracks the market, set at half of what the assessor determines the property is actually worth. The taxable value is what you are actually taxed on, and it can only rise each year by the rate of inflation or five percent, whichever is less. In a market that has appreciated, a property held for a long time develops a large gap between the two, and the longer the hold, the wider that gap grows.
What happens when it sells. On a transfer of ownership the cap comes off and the taxable value resets to equal the state equalized value. That reset takes effect for the tax year following the year of the transfer, not immediately at closing, and the cap then reapplies from the new, higher base until the property sells again.
What that means for your loan. A seller who has owned a Michigan apartment building for fifteen years through an appreciating market may be paying tax on a fraction of what you will pay. Their trailing twelve months understates your expense. A more realistic way to model it is to take roughly half your purchase price as the likely new taxable value, apply the local millage, and use that figure from your first full tax year forward. Build the step-up into year two of the pro forma, not year one, because of the timing of the reset.
A competent lender will catch this and underwrite the higher number, which is why deals sometimes come back smaller than a buyer expected. Better to model it yourself before you go under contract. Confirm the current state equalized value, the current taxable value and the local millage with the assessor for the specific parcel, and if the two values are far apart, treat that gap as a cost of acquisition rather than a discovery for later.
Note also that Michigan separately limits how fast a taxing jurisdiction can grow its millage revenue, a distinct mechanism from the taxable value cap described above. The two are frequently confused. What matters for your file is the parcel-level reset on sale.
Refinancing a Michigan Apartment Building
Refinancing has one clear advantage in Michigan that buying does not: it is not a transfer of ownership, so it does not uncap your taxable value. An owner who has held a building for years is sitting on a tax basis that a buyer of the same property could never obtain, and that advantage disappears the moment the property sells. For a long-term Michigan owner who wants liquidity, that is a substantial argument for pulling cash out rather than trading.
Start with the rent roll and the trailing twelve. Proceeds are sized on in-place income, so these two documents set your number before anything else is discussed. Because Michigan basis is low, sizing is usually driven by debt service coverage rather than by loan-to-value, which puts the emphasis squarely on the expense line.
Then the building itself. Much of Michigan’s rental stock is old, and roofs, boilers, windows and electrical service carry real weight in the property condition report. Deferred maintenance is priced, not overlooked. Owners who arrive with three clean years of operating statements and a funded capital plan consistently out-borrow owners with an identical building and a disorganized file, and on a low-basis asset that documentation is frequently worth more 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 from the incumbent. Cash-out is available on most programs where the equity supports 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. Michigan apartment loans start at $1,500,000, whether it is a sixteen-unit building in Lansing or a garden complex outside Grand Rapids.
Michigan Multifamily Financing
Apartment loan and multifamily loan describe one product: debt on a building with five or more residential units. We arrange it across Michigan, from a small Detroit walk-up to an institutional portfolio, and nothing about the underwriting turns on the terminology.
Loan size decides who competes. Because Michigan basis is low, a great many buildings here fall in the range where regional banks, credit unions and the agency small-balance programs are sharpest, and where a local relationship and a clean rent roll do most of the work. Larger balances open the field to Fannie Mae, Freddie Mac, FHA, life companies and CMBS, and multifamily loan rates there are often 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.
Michigan multifamily lenders concentrate on two things: what the tax line becomes after a sale, and the condition of older stock. Have both documented before you apply. 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.
Michigan Apartment Loan Types We Serve
We arrange financing across Michigan 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 Michigan
We arrange apartment loans throughout Michigan, not only in the metros above. Kalamazoo, Traverse City, Saginaw, Muskegon and the smaller cities are financed through the same agency, bank and credit union programs, and a well-occupied building in a secondary Michigan market often supports more leverage than its owner expects.
For larger balances see our Michigan multifamily loans. For office, retail, industrial and owner-occupied property see Michigan 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 Michigan
As a full-service commercial mortgage broker, we arrange Michigan 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 Michigan Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on Michigan 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
Michigan City Spotlights: 2026 Apartment Market Notes
Beyond the major metros, we finance apartment buildings across Michigan. Current market notes for cities where borrowers ask us to lend:
- Ann Arbor: median 1-bedroom rent about $1,400, down 3% year over year (Zumper, August 2026), anchored by the University of Michigan.
- Lansing: median 1-bedroom rent about $925, down 13% year over year (Zumper, August 2026), the state capital, where softer pricing favors well-capitalized buyers.
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 Michigan market from $1,500,000.