North Dakota Apartment Loan Rates
| ND Apartment Loan Rates Less Than $6 Million | Free Loan Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Apartment Loan 5 Yr Fixed | 5.76% | Up to 80% | |
| Apartment Loan 7 Yr Fixed | 5.79% | Up to 80% | |
| Apartment Loan 10 Yr Fixed | 5.82% | Up to 80% | |
*Rates start as low as the rates stated here. Your rate, LTV, and amortization will be determined by underwriting.
Want a personalized quote? Click here to request a customized loan quote for your North Dakota apartment property.
Need a multifamily loan over $6 million? Visit our North Dakota multifamily loan page. For other commercial property types, explore our North Dakota commercial mortgage options. To compare all rates nationwide, see commercial mortgage rates.
2026 North Dakota Apartment Loan Market Overview
Entering 2026, North Dakota presents an apartment market defined by relative affordability, steady renter demand, and tighter inventory in its largest metros. For borrowers evaluating apartment loans, the state offers a smaller but stable landscape anchored by Fargo, with additional support from Bismarck and Grand Forks. This allows apartment building financing to be structured around durable occupancy, workforce housing demand, and moderate price points.
Statewide housing data points to an apartment market that has seen more recent deliveries, with apartment vacancy rising to roughly 6.3% in 2025. At the same time, North Dakota still faces a broader need for additional housing units over the next several years, supporting a long-term case for apartment lenders focused on stabilized assets and selective new development.
Fargo Anchors North Dakota Apartment Loans
Fargo remains the primary driver of apartment activity within North Dakota. The city had an estimated 2024 population of approximately 136,285, median household income near $66,998, median gross rent around $946, and median value of owner-occupied housing near $281,900. For borrowers seeking an apartment building loan, Fargo provides the deepest renter base and strongest scale in the state.
Bismarck Adds Higher-Income Stability
Bismarck supports apartment demand through government, healthcare, and regional employment. The city had an estimated 2024 population of approximately 77,772, median household income near $78,387, median gross rent around $999, and median value of owner-occupied housing near $300,300. These fundamentals support stable renter demand and continued apartment lenders interest.
Grand Forks Provides University and Workforce Demand
Grand Forks adds another reliable apartment market supported by the university, healthcare, and local employment. The city had an estimated 2024 population of approximately 59,845, median household income near $63,627, median gross rent around $980, and median value of owner-occupied housing near $249,900. This supports steady demand for affordable and mid-tier rental housing.
Rent Levels Reflect Affordability and Market Stability
North Dakota offers relatively affordable rent levels compared to many larger apartment markets nationally. Fargo, Bismarck, and Grand Forks all remain around or below the $1,000 monthly median gross rent level based on Census housing data. This creates flexibility for structuring apartment loans across both value-add and stabilized investment strategies.
2026 North Dakota Apartment Loan Market Forecast
- State Vacancy: North Dakota apartment vacancy reached approximately 6.3% in 2025.
- Housing Need: The state is estimated to need about 20,000 additional housing units by 2027.
- Fargo Rent: Median gross rent stands near $946.
- Bismarck Rent: Median gross rent stands near $999.
For investors comparing apartment loans in North Dakota, 2026 reflects a smaller but stable market anchored by Fargo, with Bismarck and Grand Forks adding dependable secondary demand. This supports apartment financing strategies focused on affordability, durable occupancy, and long-term rental demand.
2026 Fargo North Dakota Apartment Loan Market Overview
Fargo is the core apartment market in North Dakota and the primary driver of apartment loans in the state.
Fargo North Dakota Apartment Loan Rates and Financing in 2026
Financing remains active for stabilized properties due to Fargo's size, renter base, and regional economic role.
Trends in the Fargo North Dakota Apartment Loan Market
Population growth, steady household formation, and Fargo's role as the state's largest city continue to support apartment demand.
Fargo North Dakota Apartment Loan Rent Levels in 2026
Median gross rent is approximately $946.
Fargo North Dakota Apartment Loan Supply and Demand
Supply has increased in recent years, but Fargo remains the deepest and most active rental market in North Dakota.
Opportunities for Apartment Investment in Fargo North Dakota
Investors focus on stabilized workforce housing, newer suburban inventory, and long-term rental demand.
2026 Bismarck North Dakota Apartment Loan Market Overview
Bismarck offers a stable apartment market supported by government, healthcare, and higher household incomes.
Bismarck North Dakota Apartment Loan Rates and Financing in 2026
Lenders favor stabilized and workforce-oriented assets in a market supported by consistent local demand.
Trends in the Bismarck North Dakota Apartment Loan Market
Steady population growth and a strong income profile continue to support apartment demand.
Bismarck North Dakota Apartment Loan Rent Levels in 2026
Median gross rent is approximately $999.
Bismarck North Dakota Apartment Loan Supply and Demand
Supply remains manageable relative to the city's renter base and employment stability.
Opportunities for Apartment Investment in Bismarck North Dakota
Investors focus on stable cash flow, workforce housing, and long-term hold opportunities.
2026 Grand Forks North Dakota Apartment Loan Market Overview
Grand Forks provides a reliable apartment market supported by education, healthcare, and local employment.
Grand Forks North Dakota Apartment Loan Rates and Financing in 2026
Financing remains attractive for affordable and mid-tier rental properties serving the local renter base.
Trends in the Grand Forks North Dakota Apartment Loan Market
University influence and regional employment continue to support steady leasing activity.
Grand Forks North Dakota Apartment Loan Rent Levels in 2026
Median gross rent is approximately $980.
Grand Forks North Dakota Apartment Loan Supply and Demand
Supply remains relatively balanced with stable renter demand.
Opportunities for Apartment Investment in Grand Forks North Dakota
Investors target stable income-producing properties with moderate entry points.
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 North Dakota 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 North Dakota
At Select Commercial, we arrange financing for a wide range of North Dakota 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 North Dakota Borrowers Choose Select Commercial
Thousands of apartment building investors trust Select Commercial for our direct, transparent approach and proven expertise in the North Dakota 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 North Dakota Apartment Loans
North Dakota apartment loan rates vary depending on several factors such as loan-to-value ratio (LTV), property type, borrower experience, and market conditions. As of 2025, rates remain elevated due to ongoing inflation concerns, but borrowers with strong credit and high-quality assets can still find competitive pricing. Check our latest apartment loan rates for current updates.
Most lenders require a DSCR of at least 1.25, good borrower credit, net worth, liquidity, and experience. Loan-to-value ratios in 2025 typically range from 65% to 80%, due to elevated interest rates. Properties with strong occupancy and clean financials stand a better chance of qualifying.
Most lenders require 20% to 25% down for apartment loans in North Dakota. Your loan-to-value ratio will be subject to the property's debt service coverage ratio.
A qualified broker like Select Commercial can present your loan to many different capital sources, including banks, credit unions, CMBS, agency lenders, and private funds. This increases the odds of approval and helps you secure the most favorable terms available.
The process starts with gathering financials like a rent roll, trailing 12-month income and expense statement, borrower resume, and net worth statement. A mortgage broker will analyze your documents and match you with the best lending program. Start with a Free Quote today.
Absolutely. While this page focuses on apartment loans under $6 million, Select Commercial also arranges smaller balance loans for qualified borrowers. Visit our 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 North Dakota
These agency-backed options offer competitive fixed rates, non-recourse terms, and simplified underwriting for qualified apartment investors.
North Dakota Apartment Building Financing
Select Commercial provides apartment building financing and North Dakota commercial mortgages throughout the state of North Dakota including but not limited to the areas below.