Michigan Apartment Loan Rates
Select Commercial offers some of the most competitive Michigan apartment loan rates available, with 5, 7, and 10-year fixed-rate options starting as low as 5.73% as of May 10, 2026. As one of the most experienced apartment lenders in Michigan, we arrange apartment building loans and apartment building financing for properties valued between $1.5 million and $6 million, with up to 80% LTV, 30-year amortizations, and no upfront fees. For loans over $6 million, see our Michigan multifamily loan options.
| MI 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.
Michigan apartment loan rates are priced based on the U.S. Treasury yield curve. As of May 10, 2026, the 10-year Treasury yield is 4.387% and the 5-year Treasury yield is 4.043%, which directly influences current pricing on apartment building loans in Michigan.
Want a personalized quote? Click here to request a customized loan quote for your Michigan apartment property.
Why Select Commercial Offers Competitive Michigan Apartment Loan Rates
When investors search for the best apartment loan rates in Michigan, Select Commercial consistently delivers some of the most competitive pricing available for properties under $6 million. We work directly with Fannie Mae Small Loan, Freddie Mac SBL, CMBS conduits, life insurance companies, banks, and credit unions, which means borrowers gain access to a wide network of apartment lenders in Michigan rather than the rates of a single bank. This multi-source approach allows us to consistently match borrowers with the lowest available rate and best terms for their specific apartment property.
Our Michigan apartment building financing programs include 5, 7, and 10-year fixed-rate options, up to 80% LTV, 30-year amortizations, non-recourse availability, and no upfront fees. Whether you are acquiring, refinancing, or pulling cash out of a stabilized apartment property valued between $1.5 million and $6 million, our team structures apartment building loans tailored to your investment goals.
Need a multifamily loan over $6 million? Visit our Michigan multifamily loan page. For other commercial property types, explore our Michigan commercial mortgage options. To compare all rates nationwide, see commercial mortgage rates.
2026 Michigan Apartment Loan Market Overview
Entering 2026, Michigan presents a diversified apartment market shaped by legacy industrial strength, healthcare expansion, and steady population centers anchored by Detroit and Grand Rapids. For borrowers evaluating apartment loans, the state offers a mix of urban revitalization, workforce housing demand, and stable renter bases across multiple metros. This supports apartment building financing strategies focused on value-add opportunities, consistent occupancy, and long-term income performance.
Development activity across Michigan has remained measured, with new construction concentrated in revitalized urban cores and growing suburban corridors. Vacancy has remained relatively stable as absorption keeps pace with deliveries. For apartment lenders, Michigan provides an underwriting environment focused on income durability, market positioning, and renovation-driven upside rather than aggressive rent growth.
Detroit Anchors Michigan Apartment Loans
Detroit remains the primary driver of apartment activity across Michigan. In 2026, the metro is projected to add approximately 15,000 jobs, deliver roughly 4,500 units, maintain vacancy near 6.2%, and reach average effective rent around $1,300 per month. For borrowers seeking an apartment building loan, Detroit offers value-add potential, large-scale inventory, and ongoing urban redevelopment.
Grand Rapids Reflects Growth and Economic Diversification
Grand Rapids provides one of the strongest growth-oriented apartment markets in Michigan. The city has a population of approximately 200,000, median household income near $68,000, median rent around $1,400, and median home value near $320,000. These fundamentals support continued renter demand and stable rent growth potential.
Ann Arbor Adds High-Income and University-Driven Demand
Ann Arbor represents a high-income, education-driven apartment market anchored by the University of Michigan. The city has a population of approximately 120,000, median household income near $85,000, median rent around $1,900, and median home value near $550,000. This supports strong occupancy levels and premium rent positioning.
Rent Levels Reflect Market Diversity
Michigan offers a wide range of rent levels across its major metros. Detroit is projected near $1,300 per month, while Grand Rapids and Ann Arbor command higher rents due to stronger growth and income profiles. This allows borrowers to structure apartment loans across value-add, workforce housing, and premium investment strategies.
2026 Michigan Apartment Loan Market Forecast
- Employment: Detroit is projected to add approximately 15,000 jobs.
- Construction: Detroit is projected to deliver roughly 4,500 units.
- Vacancy: Vacancy is projected near 6.2%.
- Rent: Average effective rent is projected near $1,300 per month.
For investors comparing apartment loans in Michigan, 2026 reflects a market driven by diversification and opportunity. Detroit provides scale and value-add potential, while Grand Rapids and Ann Arbor offer growth and income-driven demand across different renter segments.
2026 Detroit Michigan Apartment Loan Market Overview
Detroit is Michigan's largest city and the primary market for apartment loans in Michigan, anchoring the state's most active urban rental investment corridor through a decade-long revitalization that has transformed Midtown, Downtown, Corktown, and New Center into thriving mixed-use residential neighborhoods. The city has a population of approximately 649,374 residents as of 2026, growing at approximately 0.28% annually, the first sustained period of population growth in decades, with the broader Detroit metro reaching approximately 3,543,000 people. The median household income is approximately $39,938 and the median property value is approximately $76,800 as of 2023, creating one of the lowest per-unit acquisition cost environments among major American cities. Approximately 127,784 renter-occupied households represent approximately 51% of all occupied housing units. Current data points to an average apartment rent of approximately $1,328 per month as of March 23, 2026, and a vacancy rate of approximately 9.6% citywide, though Midtown and Downtown maintained approximately 97 to 98% occupancy even as broader city inventory remains elevated. These dynamics continue to support consistent demand for Michigan apartment loans in Detroit's revitalized core submarkets.
Detroit Michigan Apartment Loan Rates and Financing in 2026
Financing conditions for Michigan apartment loans remain active in Detroit in 2026, with lenders and investors supporting value-add acquisitions, redevelopment projects, and stabilized assets in revitalized neighborhoods near major healthcare, automotive, and technology employment anchors. The median property value of approximately $76,800 as of 2023, with a 2024 estimate approaching approximately $411,700 in select submarkets, reflects the massive dispersion between Detroit's revitalized core and its broader residential inventory, creating a wide range of entry points and underwriting profiles. Detroit's average rent of approximately $1,328/month is approximately 37% below the national median, supporting high initial cap rates on stabilized assets. For borrowers seeking an apartment building loan in Detroit, the city's extremely low acquisition cost basis, active federal and state redevelopment funding programs, and improving submarket fundamentals in the Midtown and Downtown corridors provide a distinctive underwriting environment within the broader Michigan apartment building financing landscape.
Trends in the Detroit Michigan Apartment Market
Detroit's rental market benefits from a revitalization anchored by four major employment pillars: healthcare and social assistance at approximately 38,383 workers, the largest sector, anchored by Henry Ford Health System, Detroit Medical Center, and Beaumont Health; manufacturing at approximately 37,803 workers, underpinned by the Big Three automakers and a growing EV and mobility technology cluster; retail trade at approximately 23,023 workers; and a growing technology and startup ecosystem in the Midtown-New Center corridor. Bedrock Detroit, the Rock Ventures family of companies, and a host of institutional redevelopment partners have collectively invested billions in downtown real estate since 2010, filling previously vacant office towers and catalyzing adjacent residential demand. The city's median age of approximately 35.2 years and a renters market where approximately 56% of Detroit renters earn half or less of the area median income highlights the continuing importance of affordable and workforce housing in the investment landscape. Renters in the 25 to 34 age group make up the largest cohort at 25%. These fundamentals continue to attract Michigan apartment lenders evaluating the state's primary urban market.
Detroit Michigan Apartment Loan Rent Levels in 2026
As of March 23, 2026, the average apartment rent in Detroit is approximately $1,328 per month, up 0.21% from $1,325 the prior year, and the median rent across all property types is approximately $1,200 per month, approximately 37% below the national average. By unit type: studios average approximately $992/month, one-bedrooms average approximately $1,270/month, two-bedrooms average approximately $1,480/month, and three-bedrooms average approximately $2,020/month. Approximately 36% of all Detroit rentals are priced between $1,001 and $1,500 per month. The revitalized Midtown and Downtown core command significant premiums over the citywide average, with occupancy reaching approximately 97 to 98% in those submarkets. These rent levels provide some of the most favorable initial yield entry points of any apartment loans market in Michigan, particularly for investors with knowledge of the city's distinct submarket dynamics.
Detroit Michigan Apartment Loan Supply and Demand in 2026
Detroit presents a bifurcated supply-demand picture: the citywide vacancy rate of approximately 9.6% reflects a still-elevated broader inventory, while the Midtown and Downtown core submarkets maintain approximately 97 to 98% occupancy with virtually no available units. Approximately 66% of Detroit's rental stock was built before 1960, with approximately 27% built before 1939, reflecting one of the oldest urban rental inventories in the Midwest and a deep pipeline of redevelopment and repositioning candidates. Three-bedroom units make up the largest share of rental inventory at approximately 34% of all units, consistent with Detroit's significant family rental household base, where approximately 46% of all rental households are family households and approximately 30% include children under 18. For borrowers pursuing apartment building financing in Michigan, Detroit's revitalized core submarkets provide exceptional occupancy fundamentals, while the broader city inventory offers a deep pool of value-add and redevelopment opportunities supported by active state and federal funding programs.
Opportunities for Apartment Investment in Detroit Michigan
Investors pursuing a Michigan apartment loan in Detroit in 2026 are focused on value-add acquisitions in the Midtown, Corktown, New Center, and North End neighborhoods where revitalization momentum is strongest; long-term holds in stabilized core assets where approximately 97 to 98% occupancy supports consistent income; and redevelopment projects supported by City of Detroit HOME, CDBG, and Choice Neighborhood funding programs actively constructing new affordable and workforce housing units. The city's median property value of approximately $76,800 provides acquisition costs that are a fraction of comparable Midwest cities, while Detroit's year-over-year rent growth of approximately 3.0% outpaced the national average decline of approximately 0.7% in 2025, signaling improving fundamentals in targeted submarkets. For Michigan apartment lenders evaluating the state's primary urban market, Detroit offers the highest potential initial yields, an active redevelopment pipeline supported by major institutional capital, and a revitalized core that continues to attract new residents and drive long-term performance for apartment building loans throughout the metro.
2026 Grand Rapids Michigan Apartment Loan Market Overview
Grand Rapids is Michigan's second-largest city and the most economically dynamic secondary market for apartment loans in Michigan, anchored by a diversified economy spanning manufacturing, healthcare, education, and a growing professional services sector. The city has a population of approximately 200,808 residents as of 2026, with the broader Grand Rapids-Wyoming metro reaching approximately 1.08 million people. The median household income is approximately $69,108 and the median property value is approximately $225,500 as of 2023, up approximately 10.6% year-over-year. Approximately 35,938 renter-occupied households represent approximately 45% of all occupied housing units. Current data points to an average apartment rent of approximately $1,557 per month as of March 23, 2026, up approximately 0.45% year-over-year, and a median rent of approximately $1,600 per month. Average days on market for rentals across the metro hovered near 30 days in 2024 and 2025, reflecting a consistently balanced market with low vacancy. Grand Rapids' strong population of young professionals, low cost of living, and diversified employment base continue to support active demand for Michigan apartment loans across the metro.
Grand Rapids Michigan Apartment Loan Rates and Financing in 2026
Financing conditions for Michigan apartment loans remain active in Grand Rapids in 2026, with lenders supporting stabilized assets across all classes, value-add acquisitions in the city's large pre-war and 1970s-era rental stock, and newer Class A communities near the downtown and medical corridor. The median property value of approximately $225,500 as of 2023 is approximately 8% below the national median, and the city's cost of living is approximately 1% below the national average, creating favorable initial yield conditions on stabilized assets. Year-over-year rent growth of approximately 3.4% in mid-2025 outpaced the national average decline, and the market's B-class and well-maintained C-class properties are experiencing consistent demand as renters seek value relative to newer luxury product. For borrowers seeking an apartment building loan in Grand Rapids, the city's low acquisition cost basis, improving household incomes, and balanced vacancy provide a practical and income-focused underwriting profile within the broader Michigan apartment building financing landscape.
Trends in the Grand Rapids Michigan Apartment Market
Grand Rapids' rental market benefits from one of the most balanced and diversified employment bases among Michigan's major cities. Manufacturing leads at approximately 17,186 workers, driven by a deep industrial supply chain serving the furniture, automotive, and advanced manufacturing sectors; healthcare and social assistance at approximately 16,686 workers, anchored by Spectrum Health and Metro Health; and retail trade at approximately 11,367 workers. Employment in Grand Rapids grew approximately 1.75% year-over-year from 2023 to 2024, one of the stronger job growth rates among Michigan cities. Grand Valley State University, which awarded approximately 6,502 degrees in 2021, and Grand Rapids Community College, with approximately 1,523 degrees, add consistent student and young professional renter demand. The city's median age of approximately 32.3 years is among the youngest of any Michigan city, and adults between 25 and 44 make up approximately 33% of the population. Renters in the 25 to 34 age group make up the largest renter cohort at 31%. These fundamentals continue to attract Michigan apartment lenders evaluating the state's most dynamic secondary market.
Grand Rapids Michigan Apartment Loan Rent Levels in 2026
As of March 23, 2026, the average apartment rent in Grand Rapids is approximately $1,557 per month, up 0.45% from $1,550 the prior year, and the median rent is approximately $1,600 per month, approximately 17% below the national average. By unit type: studios average approximately $1,204/month, one-bedrooms average approximately $1,398/month, two-bedrooms average approximately $1,614/month, and three-bedrooms average approximately $2,094/month. Approximately 49% of all Grand Rapids rentals are priced between $1,001 and $1,500 per month. The Midtown neighborhood commands the highest rents at approximately $2,003/month for one-bedrooms, and the Belknap Lookout area averages approximately $1,906/month. Year-over-year rent growth reached approximately 3.4% as of mid-2025, outpacing the national trend and supporting consistent underwriting for apartment loans in Michigan where a low acquisition cost basis and strong employment growth anchor stable occupancy.
Grand Rapids Michigan Apartment Loan Supply and Demand in 2026
Grand Rapids operates with a balanced supply-demand profile and a citywide vacancy rate of approximately 7.36%, while the active rental market recorded average days on market of approximately 30 days in 2024 and 2025, reflecting consistent absorption across asset classes. Approximately 35% of Grand Rapids' rental stock was built before 1939, the largest single vintage cohort, and the city's historic neighborhoods feature a distinctive mix of early 20th-century single-family rentals, converted duplexes, and purpose-built apartments. Newer product built between 2010 and 2019 represents a growing share of the market as downtown redevelopment continues to add Class A inventory. Two-bedroom units make up the largest share at approximately 37% of all units, consistent with the market's family and professional household orientation. For borrowers pursuing apartment building financing in Michigan, Grand Rapids' balanced vacancy, strong job growth, and consistent 30-day lease-up timeline support a favorable and predictable underwriting environment across all asset classes.
Opportunities for Apartment Investment in Grand Rapids Michigan
Investors pursuing a Michigan apartment loan in Grand Rapids in 2026 are focused on long-term growth and stable cash flow from a market with one of Michigan's strongest employment growth trajectories, value-add acquisitions in the city's large pre-war and 1970s vintage rental stock where modest capital improvements drive meaningful rent improvement, and stabilized holds in the Midtown, Downtown, and Eastown corridors where demand from young professionals and university graduates is most concentrated. The median household income of approximately $69,108 grew approximately 6.31% year-over-year in 2023, the highest single-year growth among Michigan's major cities, supporting renters' capacity to absorb continued rent increases. Grand Rapids' average commute of approximately 19 minutes reinforces the city's compact, livable appeal for workforce renters. For Michigan apartment lenders evaluating the state's most active secondary market, Grand Rapids offers strong employment diversification, improving income fundamentals, and a balanced supply-demand profile that supports long-term performance for apartment building loans throughout the metro.
2026 Ann Arbor Michigan Apartment Loan Market Overview
Ann Arbor is Michigan's premier university market and the highest-income secondary city for apartment loans in Michigan, anchored by the University of Michigan, one of the nation's leading research universities, and a growing life sciences and technology employment cluster. The city has a population of approximately 122,509 residents as of 2026, with the broader Ann Arbor metro area reaching approximately 370,000 people. The median household income is approximately $82,212, approximately 8% above the national median, and the median property value is approximately $453,400 as of 2024, approximately 78% above the national median. Approximately 27,581 renter-occupied households represent approximately 55% of all occupied housing units. Current data points to an average apartment rent of approximately $2,008 per month as of March 23, 2026, and a median rent of approximately $2,200 per month, approximately 16% above the national average. Ann Arbor's exceptional university-driven renter base, high household incomes, and constrained housing supply continue to support consistent demand for Michigan apartment loans in the state's most prestigious secondary market.
Ann Arbor Michigan Apartment Loan Rates and Financing in 2026
Financing conditions for Michigan apartment loans remain favorable in Ann Arbor in 2026, with lenders supporting stabilized premium assets, established student and graduate housing near campus, and value-add acquisitions in the city's large 1960s through 1980s rental stock. The median property value of approximately $453,400 as of 2024 creates significant homeownership barriers that structurally anchor the city's 55% renter-occupied rate, even in a market where the average annual household income reached approximately $123,028 in 2024. The homeownership rate of approximately 45.5% reflects the dominant role of student and young professional renters who cycle through even as permanent professional residents choose to rent rather than purchase at these price levels. For borrowers seeking an apartment building loan in Ann Arbor, the city's university-anchored demand, premium median rent of approximately 33% above the national average, and extremely low unemployment rate of approximately 3.6% provide the strongest underwriting profile of any Michigan secondary market within the broader Michigan apartment building financing landscape.
Trends in the Ann Arbor Michigan Apartment Market
Ann Arbor's rental market is dominated by the University of Michigan, which awarded approximately 17,171 degrees in 2023, making it the most prolific degree-granting institution in the state of Michigan. The university is also the city's largest employer by a wide margin, anchoring healthcare through Michigan Medicine, research employment through extensive federal grants, and professional services through technology commercialization and startup activity. The city's median age of approximately 27.7 years is the youngest of any major Michigan city, reflecting the university's outsized influence on the demographic composition. Renters in the 15 to 24 age group make up the largest cohort at 39%, and the 25 to 34 age group represents an additional 31%, reflecting the dominant student and graduate professional renter base. Approximately 62% of Ann Arbor renters hold bachelor's degrees or higher, the highest educated renter base among Michigan's major cities. Households in the 25 to 44 age group earn a median income of approximately $95,640. These fundamentals continue to attract Michigan apartment lenders evaluating the state's most prestigious university market.
Ann Arbor Michigan Apartment Loan Rent Levels in 2026
As of March 23, 2026, the average apartment rent in Ann Arbor is approximately $2,008 per month, down 2.9% from $2,068 the prior year, reflecting a modest softening from recent peaks while remaining approximately 16% above the national average. By unit type: studios average approximately $1,683/month, one-bedrooms average approximately $1,603/month, two-bedrooms average approximately $1,916/month, and three-bedrooms average approximately $2,701/month. Approximately 38% of all Ann Arbor rentals are priced between $1,501 and $2,000 per month. Downtown Ann Arbor commands the highest rents at approximately $2,992/month for one-bedrooms, and Central Ann Arbor averages approximately $2,757/month. The modest near-term softening creates a selective opportunity to acquire at more favorable pricing before the next enrollment cycle tightens availability. These rent levels support consistent underwriting for apartment loans in Michigan where university demand and high household income anchor premium pricing.
Ann Arbor Michigan Apartment Loan Supply and Demand in 2026
Ann Arbor operates with a tight overall supply-demand profile driven by the university's consistent enrollment and a housing stock that has not kept pace with demand. The citywide vacancy rate is approximately 7.04%, but the active rental vacancy rate as of 2019 ACS data was approximately 3.61%, far below the broader citywide figure, reflecting a majority of vacant units that are between tenants rather than truly unoccupied. Approximately 36% of Ann Arbor's rental stock was built between 1960 and 1979, creating a deep inventory of dated but well-located assets near campus that hold strong occupancy regardless of condition. Two-bedroom units make up the largest share of rental inventory at approximately 39% of all units, consistent with the roommate-sharing dynamic common among graduate and undergraduate student renters. For borrowers pursuing apartment building financing in Michigan, Ann Arbor's university-anchored demand cycle, high-income renter base, and structurally limited new supply support consistently favorable occupancy on well-located stabilized assets.
Opportunities for Apartment Investment in Ann Arbor Michigan
Investors pursuing a Michigan apartment loan in Ann Arbor in 2026 are focused on long-term rent durability in premium assets near Central and Downtown campus corridors, value-add acquisitions in the city's large 1960s through 1980s rental stock where proximity to the University of Michigan anchors occupancy across economic cycles, and stabilized holds where the university's approximately 17,000-plus annual degree graduates create a continuously replenishing renter base. The near-term rent softening of approximately 2.9% year-over-year from recent highs represents a measured window for acquisitions before the next academic cycle restores tighter vacancy conditions. For Michigan apartment lenders evaluating the state's most prestigious secondary market, Ann Arbor offers the highest educated renter base, a median property value of approximately $453,400 that permanently anchors renter demand, and University of Michigan employment that supports strong long-term performance for apartment building loans throughout 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 Michigan 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 Michigan
At Select Commercial, we arrange financing for a wide range of Michigan 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 Michigan Borrowers Choose Select Commercial
Thousands of apartment building investors trust Select Commercial for our direct, transparent approach and proven expertise in the Michigan 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 Michigan Apartment Loans
As of May 10, 2026, Select Commercial offers Michigan apartment loan rates starting as low as 5.73% on 5, 7, and 10-year fixed-rate options for apartment properties valued between $1.5 million and $6 million. Final rates depend on loan-to-value ratio (LTV), debt service coverage ratio (DSCR), borrower credit and experience, and current market conditions. View the full Michigan apartment loan rate table above for current pricing across loan terms.
Most lenders require a debt service coverage ratio (DSCR) of at least 1.25, good borrower credit, sufficient net worth and liquidity, and prior real estate ownership experience. Loan-to-value (LTV) ratios typically range from 65% to 80% depending on the loan program and current market conditions. Properties with strong occupancy and clean operating financials qualify for the most favorable Michigan apartment loan terms.
Most apartment lenders in Michigan require a 20% to 25% down payment. Your final loan-to-value ratio will be determined by the property's debt service coverage ratio (DSCR), occupancy, location, and overall financial performance.
A qualified broker like Select Commercial can present your loan to many different capital sources, including banks, credit unions, CMBS conduits, agency lenders (Fannie Mae and Freddie Mac), life insurance companies, and private funds. This multi-source approach increases the odds of approval and helps you secure the most favorable rates and terms available across the Michigan apartment lender market.
The process starts with gathering financials including a current rent roll, trailing 12-month income and expense statement, borrower resume, and a personal financial statement. A mortgage broker will analyze your documents and match you with the best lending program for your Michigan apartment property. Start with a Free Quote today.
Select Commercial is a leading provider of competitive Michigan apartment loan rates for properties valued between $1.5 million and $6 million. Through our access to Fannie Mae Small Loan, Freddie Mac SBL, CMBS, life insurance company, bank, and credit union capital, we consistently match borrowers with the lowest available rate and best terms for their specific apartment property. As of May 10, 2026, our Michigan apartment loan rates start as low as 5.73%.
Yes. While this page focuses on apartment loans under $6 million, Select Commercial also arranges larger balance loans for qualified borrowers. Visit our Michigan 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 Michigan
These agency-backed options offer competitive fixed rates, non-recourse terms, and simplified underwriting for qualified apartment investors.
Michigan Apartment Building Financing
Select Commercial provides apartment building financing and Michigan commercial mortgages throughout the state of Michigan including but not limited to the areas below.