Cincinnati Apartment Loans
Loans from $1 Million to $25 Million+

Cincinnati Apartment Loan Rates - Rates updated September 25th, 2022

Cincinnati Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.37% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 5.12% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 5.08% Up to 80% Get Free Quote
Cincinnati Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.47% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 5.22% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 5.18% Up to 80% Get Free Quote
Cincinnati Apartment Building Cincinnati
Apartment Loan

Select Commercial has excellent Cincinnati Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Cincinnati. Whether you are looking to finance a small apartment building, a complex with hundreds of units, or a co-operative, we can help you find the optimal financing solution to meet your Apartment mortgage loan needs. While we lend across the entire continental US, we are able to give our best rates and loan programs to certain areas that we feel are strong markets. Cincinnati is one of the cities that we consider to be a premium market and we actively look to originate good quality loans here for our clients. We have a diverse array of many available loan products to help qualified Cincinnati OH borrowers looking to purchase or refinance an apartment property. We offer apartment loans with terms and amortizations up to 30 years, recourse and non-recourse, and many options for prepayment. We typically approve Apartment building loans within 1 day and usually close within 45 days of application. Our clients love our simplified application process, 24-hour pre-approvals with no-cost and no-obligation, great rates and terms, fast closings and personalized service. If you are looking to purchase or refinance an apartment building, don't hesitate to contact us. For more information on multifamily loans, check out how to get the best rate on a multifamily loan and how to get the best rates on an apartment refinance.

Cincinnati Apartment Loan Benefits

Cincinnati Apartment Loan rates start as low as 5.08% (as of September 25th, 2022)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily financing 
• Terms and amortizations up to 30 years 
• Multifamily loans for purchase and refinance, including cash-out 
• 24 hour written pre-approvals with no cost and no obligation

Recent TRUSTPILOT Reviews

Select Commercial Funding Reviews from TRUSTPILOT

A three year journey
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Apartment Loan Basics

Cincinnati Apartment Loan Types We Serve

If you are looking to purchase or refinance a Cincinnati apartment building, don't hesitate to contact us. We arrange financing in the city of Cincinnati for the following:

  • Large urban high-rise multifamily buildings
  • Suburban garden multifamilycomplexes
  • Small multifamily buildings containing 5+ units
  • Underlying cooperative multifamily building loans
  • Portfolios of small multifamily properties and/or single-family rental properties
  • Other multi-family and mixed-use properties

 

Apartment Loans - Lending Options

Cincinnati Apartment Loan Helpful Articles

How to Get the Best Rate on a Multifamily Loan
Fannie Mae and Freddie Mac 2022 Update
How To Get The Best Rates On An Apartment Refinance
What Do Underwriters Look for When Evaluating Apartment Loans?
What You Need to Know About Freddie Mac SBL Multifamily Loans
How to Calculate Debt Service Coverage Ratio for Apartment Loans
Apartment Occupancy Levels – Concern in Some Major US Markets
How to Invest in an Apartment Building
Are You Shopping for an Apartment Building Loan?
How to Buy an Apartment Building
What Are Commercial Mortgage Lenders Looking for These Days
Uncomplicated Underwriting
How to Qualify for a Great Rate When Refinancing Your Apartment Building

Recent Closings

Cincinnati Vacancy and Rents Cincinnati Rent and Sales Trends

2022 Cincinnati Apartment Loan Outlook

Local Economy Creates Good Apartment Fundamentals – Apartment Investors are Confident

Employment in the Cincinnati market is strong. Cincinnati begins 2022 after a year economic resiliency and strong apartment demand for Class A and B apartments. The personal services, education, and health services sectors are mostly responsible for the strong employment numbers as these sectors saw employment figures which exceeded pre-Covid levels at the end of 2021. Looking ahead, these sectors are prime for continued growth, as many medical centers and a range of local Fortune 500 firms have indicated a desire to hire. Hiring by these companies will spur strong demand for higher-priced apartment units. While new construction may create some excess overall unit availability, vacancy rates in most apartment classes are expected to stay well below their long-term historical averages in 2022.

Lower-tier apartment properties attract buyers seeking stability. Due to the typical size of available listings, most institutional investors have shied away from investing in the Cincinnati market. This presents a buying target for smaller, private investors seeking solid cash flow. The city’s Class C market appeals to these buyers. Apartment vacancy in this sector was in the 2-3% range throughout the pandemic with positive rent growth in each quarter. Also, higher than average returns and apartment prices below $80,000 per door are available in some Cincinnati submarkets. Apartment investors looking for properties of less than 30 units, near major employers or the central business district have been most active in Clifton and Over-The-Rhine. Investors looking for markets with very low vacancy and long-term rent growth exists are buying properties in Northwest Cincinnati neighborhoods, including Price Hill.

Apartment Market Forecast and Cincinnati Apartment Loan Economics

Cincinnati has a National Multifamily Index rank of 36. Increasing apartment vacancy and moderating job growth push Cincinnati to the bottom half of the 2022 Index.

Employment up 2.0%. Employment is within 1% of the pre-Covid peak with the addition of over 22,000 new jobs.

New construction expected to add 3,000 apartment units. After finishing 1,600 units in 2021, builders increase new volume in 2022, growing inventory by 1.8 percent. New construction, however, will be sparse in the Downtown area.

Vacancy is up 40 basis points. Apartment availability availability rises moderately to 3.1 percent in 2022 after a decline of 90 basis points in 2021. Still, vacancy will hold 70 basis points below the prior five-year average.

Rental rates are up 4.5%. The rate of rent growth in 2022 slows somewhat following a nearly 9% gain in 2021, lifting the city’s average apartment rent to $1,160 per month.

Investment in Cincinnati apartments is expected to continue as efforts to create an uptown district near the University of Cincinnati and adjacent medical centers may generate more investment activity in surrounding neighborhoods.

Cincinnati apartment loan rates will start to increase in 2022 as the Federal Reserve starts raising rates to slow the rate of inflation. We will be watching to see if Cincinnati apartment loan rate increases will affect market activity in 2022.

All data provided by Marcus and Millichap

2021 Cincinnati Apartment Market and Trends

Employment in 2021 is on the uptick in Cincinnati. The employment rate is expected to grow 2.5% with an increase of 27,300 jobs in 2021. Construction of new multifamily units is a bit down this year, with an expectation of 2,200 new units to be created in 2021. Vacancy is up this year in Cincinnati. The vacancy rate will climb 3.9% this year. That is an increase of 30 basis points. Rent in 2021 is up 2.9% with an expected effective rent of $1,059 per month. While multifamily construction has been down overall, construction has been ramping up of late. This has helped to drive demand in key areas such as the Northeast Cincinnati/Warren County and the Campbell/Kenton Counties submarkets. The affordability of these areas seem to be leading developers to construct new multifamily properties in these submarkets. We have seen a similar trend amongst renters of late in 2021. Apartment buildings in the Central and the North Central Cincinnati submarkets have experienced the largest declines in annual net absorption, while the Northeast Cincinnati/Warren County and the West Cincinnati submarkets had the largest increases.

- Data provided by Marcus and Millichap

2021 Multifamily Outlook

  • Employment in the US is expected to show a 4.6% year over year increase with the creation of 6.5 million new jobs in 2021 which represents the largest annual increase in over three decades.  This is the result of businesses emerging from the Covid-19 pandemic.  Unfortunately, the US lost close to 9.4 million jobs during the pandemic.
  • Strong demand for apartments, as a result of increased employment rates, is expected to push national vacancy rates down to 3.9%, down from 4.4% in 2021.
  • Construction of new apartments in 2021 are expected to top 385,000 new units, an increase of 2.1% over last year’s record pace.  Rising labor and construction costs are starting to have an effect on new construction, however.
  • Following rent declines during the pandemic, average rental rates are expected to rise 6.8% in 2021 to $1,507 per month.  Landlords are able to raise rents dramatically due to decreased vacancy rates and the strong demand got rental housing.
  • The COVID-19 pandemic affected the ability of young graduates to find jobs and move into apartments of their own.  The demand for apartment rentals is usually fueled by young graduates entering the workforce and moving into rental apartments.  Many young adults lived with their parents or friends during the pandemic and into early 2021.  As 2021 progressed, many companies reopened their offices and began hiring again which generated record levels of new apartment rentals.  This trend should continue through late 2021 as more new workers are able find jobs and move into their own apartments.  Many of these new multifamily units are in metro areas of the sunbelt states as workers have been moving out of colder urban areas in favor of more suburban warmer climates.

    The tight market in 2021 for new home purchases has caused many would be homebuyers to continue renting.  Prices for existing homes have risen due to lack of inventory and the cost of construction has skyrocketed due to increased costs for raw materials.  The high cost of purchasing a new or existing home is keeping the demand for rental units very strong in 2021.

    During the pandemic, when workers were either out of work or working from home, many people moved out of densely populated urban areas in favor of suburban locations.  In 2021, as more employees are returning to their offices, we are seeing demand pick up once again for rental apartments in urban locations.  In addition, as more and more retail and dining locations reopen in downtown areas, we expect to see a return of employees to these areas.

    During the pandemic, the CDC and local governments instituted a moratorium of evictions.  This caused many landlords to suffer economic losses and depressed the value of apartment properties.  In 2021, as these moratoriums start to expire, we expect to see strong demand from investors for these properties.

    Nationwide, the first half of 2021 saw more than 175,000 new apartments completed and a total of 363,000 for the previous 12 months.  A high percentage of these new units were in Texas and other sunbelt states, as more and more people are relocating to warmer climates.  Occupancy rates and asking rents have been lower in larger urban markets in the Northeast and other colder climates, while occupancy rates and asking rents have been increasing in these warmer sunbelt climates.  These 2021 trends have definitely been driven by the COVID-19 pandemic and we are watching these trends closely to see if these trends persist after the pandemic is over. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.

    What Happened with Apartment Loans in 2020

    Cincinnati Economic Trends Cincinnati Economic Trends

    Emerging Entertainment Landscape Drives Investment For Low-Cost Acquisitions West of Downtown

    Thriving apartment demand in city’s cultural hub. Households are expected to rise by 7,700 this year, building on 2019’s similar gain. This trend is creating strong multifamily leasing momentum in downtown Cincinnati, as the area’s amenities appeal to apartment renters. Arts events at Music Hall, cultural programs at Washington Park, and new trendy restaurants aid in the livability of downtown, as residents can efficiently access these retail and entertainment venues. Just south, in northern Kentucky, Newport on the Levy will be getting millions of dollars in renovation this year to its 360,000-square-foot mixed-use entertainment district. An upgrade to this area will also appeal to apartment renters seeking living accommodations in Cincinnati’s metro core. In 2020, apartment demand overall continues to grow, supporting the need for the 1,700-unit construction pipeline in Cincinnati this year. The influx of multifamily inventory will tick up vacancy though the rate will remain very tight in the mid- 3- percent area, allowing the average effective multifamily rent to rise to a new high. Investors are very interested in pursuing apartment loans to finance their next purchase in Cincinnati.

    Transactions concentrated west of the city; aged stock producing robust yields. Sales velocity west of the city will continue to be strong in 2020, as Class C apartment buildings spanning from Lower Price Hill up to Westwood are trading more frequently than in other areas. In West End, buyers are seeking multifamily assets near Cincinnati’s $250 million professional soccer stadium currently underway and scheduled for finalization in 2021. In this locale apartment rental demand during and after the completion of this large-scale development is projected to remain high. The average price per multifamily unit for older buildings in this area lands well below the metro’s mean of $54,000 per door, with some trades dipping as low as $30,000 per unit. These low price points are creating competition for regional buyers as many primary market investors are coming into Cincinnati to pursue multifamily assets that are more cost-effective than in their home states. Cincinnati is definitely a market to consider for any investor looking to finance his or her next purchase with a multifamily loan.

    2020 Cincinnati Apartment Market Forecast

    Cincinnati Completions vs. Absorption Cincinnati Completions vs. Absorption

    Cincinnati National Multifamily Index Rank is at 39, up 1 place. Strong rent growth and yields above the national average nudge Cincinnati up a spot in the NMI.

    Employment in Cincinnati is up 0.9%. Job gains will slow this year with 10,000 slots created, approximately half the amount of people hired in 2019.

    Construction of apartment units in Cincinnati is expected to exceed 1,700 units. After the delivery of 800 units last year, construction will increase to over double the amount finalized in 2019. Development will be concentrated in central Cincinnati.

    Vacancy in Cincinnati is up 30 bps. Increase in supply will result in a slight expansion in vacancy to 3.5 percent. In 2019, vacancy dropped 100 basis points.

    Rent in Cincinnati is up 5.1%. Building on a 5.3 percent rent hike in 2019, the average effective rent will rise at a similar pace this year to $1,030 per month.

    Investment opportunities in Cincinnati remain strong for those looking for multifamily loans. East Cincinnati remains one of the most highly sought-after investment destinations, as product can be purchased slightly below the market average cost of $54,000 per unit and produce higher yields, sometimes above 7 percent. Investors would be wise to look into procuring an apartment loan for their next purchase in the Cincinnati metro.

    Data provided by Marcus & Millichap.

    Cincinnati Vacancy and Rents Cincinnati Vacancy and Rents

    Apartment Loan Trends in 2020

    At the start of 2020 the market outlook did not indicate any significant factors that would cause major trouble in the multifamily market. Market indicators suggested that demand for housing, especially for apartment rentals, would remain healthy, thus continuing to generate new construction of multifamily buildings. Both the high number of permits and starts over the past couple of years led experts to believe that developer confidence is very high in the multifamily market. Market experts predicted an annual completion of 340,000 apartment units over 2020, way above the 300,000-annual average for the past five years. Over the last couple of years, the multifamily market has seen absorptions outperform expectations due to both changes in lifestyle and demographic preferences and new supply has consistently taken longer to be built. These two factors have helped the market to perform stronger than expected in the past and should continue throughout this year. Market data indicated that rent growth would remain strong in 2020, growing 3.6% (which is above the historical average). In terms of mortgage origination, low interest rates and strong multifamily performance were expected to help loan volumes grow. Experts predicted that the origination volume in 2020 will increase by 5.7% to $390 billion. Market data indicated that cap rates have more room to decline, which would lead to increasing property values and should drive up origination volume. However, with the current outbreak of Covid-19, the overall economy has been in flux. The stock market has crashed and commercial mortgage interest rates have been severely impacted. Huge metros such as New York have all but shut down much economic activity and entertainment. In this unsteady climate, many investors are scared to purchase commercial real estate and to take out commercial mortgages and apartment loans. Additionally, the oil industry has taken a big hit. Not only are people traveling less due to the pandemic, foreign countries like China and Russia are involved in a huge price war which is driving the price of oil way down. Experts are hopeful that as the weather warms up and public health policy learns how to handle this pandemic, the economy should revert back to its pre-virus strength.

    Cincinnati Apartment Loan Options

    Cincinnati Freddie Mac Apartment loans

    Cincinnati Freddie Mac Multifamily Loans provide mortgage capital in the secondary market for apartment building loans. Together, Fannie Mae and Freddie Mac control a very large portion of the multifamily loan market. Freddie Mac has a very aggressive program for small balance apartment loans (from $1,000,000 to $7,500,000). Some features of this program include:

    • Market size driven. Freddie Mac classifies loans by the size of the overall market: Top, Standard, Small, and Very Small. Rates are best in top market locations (major metropolitan areas).
    • Capped costs. Freddie Mac lenders often cap the closing costs at a fixed dollar amount, thereby lowering the overall cost to borrow money.
    • Flexible pre-pay penalties. Freddie Mac offers many options for pre-payment penalties, from yield maintenance to step-down to “soft” step-down.
    • Interest-Only (I/O) loans. Freddie Mac will allow payments consisting of only interest and no amortization of principal.
    • Fixed rate terms. Freddie Mac offers fixed rates of 5, 7, and 10 years, followed by an adjustable period. These loans are called Hybrid/Adjustables. Loans have a 20 year term and a 30 year amortization schedule.

    Freddie Mac Loan and Rate Information


    Cincinnati Fannie Mae Apartment loans

    The Cincinnati Fannie Mae multifamily loan platform is one the leading sources of capital for Cincinnati apartment building loans in the US. Fannie Mae is a leader in the secondary market – meaning they purchase qualifying apartment loans from leading lenders who originate these loans for their borrowers. Fannie Mae purchases loans secured by conventional apartments, affordable housing properties, underlying cooperative apartment loans, senior housing, student housing, manufactured housing communities and mobile home parks on a nationwide basis. The Fannie Mae platform has many benefits, including:

    • Long term fixed rates and amortizations. Fannie Mae allows terms and amortizations of up to 30 years. Most banks offer only 5 or 10 year fixed rates and 25 year amortizations.
    • Non-recourse options. Most banks will require the borrower to sign personally for the loan. Fannie Mae offers non-recourse apartment loans.
    • Lending in smaller markets. Many national lenders do not like to lend in rural or tertiary markets. Fannie Mae is a good option for these loans.
    • Assumability and Supplemental Financing. Fannie Mae allows their loans to be assumed by a qualified borrower. They also have a program which allows borrowers the ability to come back and borrow additional funds during the life of the loan (subordinate financing).

    Fannie Mae Loan and Rate Information


    Cincinnati FHA HUD Multifamily Loans

    HUD (Department of Housing and Urban Development) and FHA (Federal Housing Administration) insured multifamily loans are some of the best financing options for real estate investors and developers. While HUD does not directly make these loans, they do insure multifamily loans made by third party lenders to real estate investors. The third party lender will process the loan in accordance with the FHA HUD guidelines and HUD will underwrite the loan in order to provide the insurance. There are two primary types of HUD insured loans that multifamily investors can take advantage of.

    Learn More About FHA HUD Multifamily Loans

    Cincinnati Apartment Lending with Banks and Other Programs

    While the agencies (Fannie Mae, Freddie Mac and HUD) offer some excellent programs, not every apartment loan applicant qualifies for these programs. We have many excellent choices for these loans with our correspondent banks, credit unions, insurance companies and private lenders. Some examples of these loans include:

    • Cincinnati Multifamily loans that require flexible underwriting or those that don’t meet standardized criteria.
    • Properties in less than desirable markets, or those that require repairs or updating.
    • Properties that don’t cash flow according to industry guidelines or lack stabilized cash flow.
    • Borrowers with past credit issues, including foreclosures, short sales, or judgements.
    • Borrowers who are not US citizens.

    Whether you are purchasing or refinancing, we have the right solutions available for your multifamily mortgage loans. We will entertain apartment loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.

    Cincinnati Apartment Building Loans

    Select Commercial provides Apartment Loans and multifamily loans throughout Cincinnati, Ohio including, but not limited to, the areas below.


    Avondale, Betts-longworth, Bond Hill, California, Camp Washington, Carthage, Clifton, College Hill, Columbia Tusculum, Columbia Tusculum (Historic District), Corryville, Cuf, Dayton Street, East End, East Price Hill, East Walnut Hills, East Westwood, Eastwood, English Woods, Evanston, Fay Apartments, Hartwell, Heights, Hyde Park, Kennedy Heights, Laurel Homes, Linwood, Lower Price Hill, Lower Price Hill (Historic District), Madisonville, Millvale, Mount Adams, Mount Airy, Mount Auburn, Mount Lookout, Mount Washington, North Avondale, North Fairmount, Northside, OBryonville, Oakley, Over-the-rhine, Paddock Hills, Pendleton, Pleasant Ridge, Prospect Hill, Queensgate, Race Street, Riverfront, Riverside, Roselawn, Sayler Park, Sedamsville, South Cumminsville, South Fairmount, Walnut Hills, West End, West Price Hill, Westwood, Westwood Town Center, Winton Hills, Winton Place.