Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Madison, Wisconsin
Madison Apartment Loans in 2026
Select Commercial specializes in Madison apartment loan solutions for local investors, plus apartment building financing for larger properties and portfolios, with rates as low as 5.81% and up to 80% LTV. For properties elsewhere in the state, see our Wisconsin apartment loans; for loans over $6 million, see Madison multifamily loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Madison
Madison apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Wisconsin apartment loans.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Madison Apartment Loan Rates
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.16% | Up to 80% |
| 7 Year Fixed | 6.14% | Up to 80% |
| 10 Year Fixed | 6.16% | Up to 80% |
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.81% | Up to 75% |
| 7 Year Fixed | 5.79% | Up to 75% |
| 10 Year Fixed | 5.81% | 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 11, 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 Madison Apartment Loan Programs
As a broker, we compare every program to find your best-fit Madison apartment financing. Typical starting points for properties under $6 million:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae Small Loan | 6.16% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac SBL | 6.15% | Up to 80% | $1M to $7.5M 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. For properties over $6 million, see our Madison multifamily loans.
2026 Madison Apartment Loan Market: Madison Apartment Market Stays Healthy as New Supply Eases Rent Pressure
Madison remains one of the strongest and most stable metro economies in the region, anchored by state government, the university, and a growing technology and health sector. A steady pipeline of new apartments has nudged vacancy up toward a balanced range and cooled the rapid rent growth of recent years. The result is a market that is still landlord friendly by national standards but is giving renters more choices and gentler pricing.
Employment
The Madison metro posted one of the lowest unemployment rates in the nation at about 2.7 percent in April 2026, ranking among the seven lowest among large US metro areas. A diverse base of government, education, health care, and technology jobs continues to underpin steady housing demand.
Construction and supply
The metro added a net 2,802 multifamily units in 2025, an increase of about 2.8 percent to the apartment stock, and roughly 5,837 units were under construction, higher than any pre pandemic level though below the 2021 and 2022 peaks.
Vacancy
The regional apartment vacancy rate rose modestly to about 6.2 percent from 5.9 percent as new supply came online, keeping the market close to what is generally considered a healthy and balanced range.
Rent trend
Average apartment rent in Madison was around 1,464 dollars a month in late 2025, and year over year asking rent growth slowed to about 1.4 percent from 2.5 percent as added supply eased upward pressure on pricing.
2026 Madison forecast at a glance:
- Steady employment and university demand should keep occupancy solid
- Continued deliveries are likely to hold vacancy near a balanced range
- Rent growth should stay in a modest 1 to 2 percent annual range in the near term
- A still sizable construction pipeline will keep supply flowing into the market
Madison Multifamily Loans (Over $6 Million)
For larger Madison apartment properties, we arrange multifamily loans over $6 million through Fannie Mae DUS, Freddie Mac, FHA/HUD and CMBS. These institutional programs offer non-recourse financing, up to 80% LTV and fixed terms up to 30 years, with even longer fully amortizing options through HUD.
See our Madison multifamily loans page for over-$6 million financing, or explore Fannie Mae and Freddie Mac agency programs.
Recent Apartment Loan Closings
A sample of apartment and multifamily loans we have arranged for investors nationwide.
Madison Apartment Loan Types We Serve
Whether you are purchasing or refinancing a Madison apartment building, we arrange financing for:
- Large urban high-rise apartment buildings
- Suburban garden apartment complexes
- Small apartment buildings with 5+ units
- Underlying cooperative apartment loans
- Portfolios of small apartment and single-family rental properties
- Other multifamily and mixed-use properties
We consider apartment loan requests of all sizes, beginning at $1,500,000.
Other Property & Loan Types We Finance in Madison
As a full-service commercial mortgage broker, we arrange Madison financing across every major property and loan type:
We consider commercial loan requests of all sizes, beginning at $1,500,000.
Madison Neighborhoods We Serve
Select Commercial provides apartment loans throughout Madison, Wisconsin and the surrounding area, including:
- Downtown
- Marquette
- Tenney-Lapham
- Schenk-Atwood
- Williamson
- Vilas
- Regent
- Dudgeon-Monroe
- Westmorland
- Nakoma
- Bay Creek
- Hill Farms
- University Hill Farms
- Midvale Heights
- Sherman
- Eken Park
- Sunset Village
For other cities in the state, see Wisconsin apartment loans.
Nearby Apartment Loan Markets
We finance apartment buildings nationwide. Explore related markets:
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 Madison Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on Madison 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