South Dakota · Over $6 Million
South Dakota Multifamily Loans
Select Commercial arranges South Dakota multifamily loans, with rates as low as 6.22%, up to 80% LTV and non-recourse agency options. We compare Fannie Mae, Freddie Mac, FHA/HUD and CMBS. For loans under $6 million, see South Dakota apartment loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in South Dakota
South Dakota apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See South Dakota apartment loans and South Dakota commercial mortgages.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
South Dakota Multifamily Loan Rates
Rates updated as of October 21, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.22% | Up to 80% |
| 7 Year Fixed | 6.26% | Up to 80% |
| 10 Year Fixed | 6.35% | Up to 80% |
- Streamlined underwriting for institutional multifamily
- Cash-out refinances are acceptable
- Interest-only and non-recourse options
- Minimum 1.25x debt-service-coverage ratio
South Dakota Apartment Loans
For smaller apartment building loans, under $6 million
Rates last updated October 21, 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.
South Dakota Apartment Building Loans
Not every South Dakota apartment property is over $6 million, and we finance smaller buildings too. For 5+ unit South Dakota apartment properties from $1,500,000 to $6 million, see our South Dakota apartment loans page for Fannie Mae Small Loan, Freddie Mac SBL, bank and credit union options.
Compare South Dakota Large-Balance Programs
As a broker we place your large-balance South Dakota multifamily loan with the right capital source. Typical starting points for properties over $6 million:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae DUS | 6.22% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac | 6.26% | Up to 80% | Non-recourse large-balance |
| FHA / HUD | 6.83% | Up to 85% | Highest leverage, 35-yr amortization |
| CMBS / conduit | 7.00% | Up to 75% | Non-recourse, flexible underwriting |
Most large-balance lenders look for a debt-service-coverage ratio (DSCR) of at least 1.25x. For properties under $6 million, see our South Dakota apartment loans.
Rates last updated October 21, 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.
2026 South Dakota Multifamily Investment and Lending Outlook
Start with an honest statement about data, because it changes how a South Dakota loan gets underwritten.
Neither Sioux Falls nor Rapid City appears in the national multifamily research coverage. The major publishers that report cap rates, price per unit, vacancy, absorption and construction pipelines for Omaha, Minneapolis and Kansas City do not report them for South Dakota, because both metros fall below the market-size thresholds those surveys use. There is no published South Dakota apartment cap rate or price per unit that we would quote.
That is not a reason to avoid the state. It is a reason to prepare differently. Where published market statistics do not exist, an appraiser works from property-level data and from a confidential sales file, and a lender leans on the income approach. A complete rent roll, three years of operating statements and a documented occupancy history carry more weight in South Dakota than in any market with a published quarterly report, and a borrower who arrives with all three shortens the timeline materially.
What is available is hard and dated. South Dakota equalizes assessments to 85% of market value for property tax purposes. On the lending side, the state’s larger banks are privately held and report through federal call reports rather than securities filings: as of June 30, 2026, Dacotah Bank in Aberdeen held about $154 million of loans secured by five-or-more-unit residential property against $4.92 billion of total assets, and First PREMIER Bank in Sioux Falls held about $105 million against $3.64 billion. Those are the real in-state balance sheets for this product, and they are modest, which is the practical reason a loan over $6 million in South Dakota usually involves either an out-of-state lender, an agency execution, or a participation.
Rapid City does appear in at least one public apartment REIT’s list of operating markets, which is a useful signal that institutional capital is present there.
A New South Dakota Apartment Can Be Taxed on a Quarter of Its New Value, Stepping Up to Full by Year Seven
If you are buying or refinancing a South Dakota apartment property built in the last six years, the property tax line on its operating statement is understated by law, and the increases ahead of it are scheduled with dates.
The mechanism. Under SDCL 10-6-137, after construction a new structure must be valued in the usual manner, but the board of county commissioners of the county in which the structure is located may adopt a discretionary formula for assessed value to be used for tax purposes, which may include for any or all of the five tax years following construction all, any portion, or none of the assessed value. Eligible classes include commercial residential structures of four or more units with $30,000 or more of full and true value, and separately affordable housing of four or more units rent-restricted at 60% of area median income for a ten-year minimum. The formula cannot be used inside a tax increment finance district.
For those residential classes, SDCL 10-6-137.1 sets the schedule, expressed as the share of the increased assessed value that may be taxed:
No more than twenty-five percent in the first or second year following completion of construction. No more than fifty percent in the third or fourth year. No more than seventy-five percent in the fifth or sixth year. One hundred percent in the seventh year. During construction, assessed value may not exceed the value in the year preceding the start of construction.
So a three-year-old South Dakota apartment property is paying tax on at most half of its improvement value, and a one-year-old property on at most a quarter.
What that does to a loan. A lender sizing to in-place net operating income on a recently built South Dakota asset is sizing against a tax expense that roughly triples between year one and year five, and reaches four times the year-one figure in year seven, entirely independent of what the market does. Underwrite the fully phased-in figure, and test the amortization schedule and any interest-only period against the year-seven number rather than the current one. This is the most common way a South Dakota pro forma misses.
It is discretionary, not automatic. Whether the formula applies at all depends on a county commission resolution, and under SDCL 10-6-138, if the county has not adopted one, the municipality may adopt a formula for property inside its limits or within three miles, and for the four-or-more-unit residential classes the municipal formula may differ from the county’s. Diligence means obtaining the actual resolution and the construction completion date, not reading the current tax bill and assuming. Properties receiving benefits before July 1, 2022 keep their treatment under the prior resolution.
Three other South Dakota features matter at this loan size.
A five-or-more-unit apartment cannot qualify for the favorable classification. Under SDCL 10-13-39 the owner-occupied single-family class reaches residential housing consisting of four or less family units plus condominiums, townhomes and cooperatives, with an owner-occupancy test. A larger apartment building falls in the residual class, and the difference is substantial: under SDCL 10-12-42, for taxes payable in 2027 and thereafter the school district general fund levy carries a general maximum of $4.867 per $1,000 of taxable valuation for that residual class, against $1.051 for agricultural and $0.669 for owner-occupied single-family. That is roughly seven times the owner-occupied rate on the school portion of the bill, and districts levying below the maximum must hold the three categories in the same proportion.
There is relief on levy growth, and it is dated. Under SDCL 10-13-35, total revenue payable from real property taxes in a taxing district is capped at the lesser of three percent or the index factor, with carve-outs for improvements, change in use, annexation and boundary changes, and the statute adds that for taxes payable in 2027 through 2031 the increase may not exceed three percent. It does not apply to school districts, which is where the class differential above lives.
And recording a mortgage here costs almost nothing. South Dakota’s transfer fee under SDCL 43-4-21 is fifty cents for each $500 of value, or 0.10%, imposed upon the privilege of transferring title to real property and paid by the grantor. Mortgages are recorded under SDCL 7-9-15 at a flat page fee, thirty dollars for the first fifty pages plus two dollars for each additional page, with nothing indexed to the debt. On a $20,000,000 purchase the grantor pays $20,000 on the deed and the borrower pays a few dozen dollars to record the loan.
South Dakota Multifamily Loan Programs
As a broker, we compare every large-balance program to find your best fit:
Recent Multifamily Loan Closings
A sample of apartment and multifamily loans we have arranged for investors nationwide.
South Dakota Multifamily Markets We Serve
We arrange large-balance multifamily loans throughout South Dakota, including:
Other Property & Loan Types We Finance in South Dakota
As a full-service commercial mortgage broker, we arrange South Dakota 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
“As a real estate attorney, I trust that Select Commercial will deliver commercial mortgages in a timely manner. My clients are always handled professionally, and the rates and terms are excellent. I heartily recommend them.”
David S. · New York City“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 South Dakota Multifamily Loan Quote
No cost, no obligation. Written answers within 48 hours on South Dakota multifamily loans over $6,000,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up