Tennessee Apartment Loan Rates
| TN 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.
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Need a multifamily loan over $6 million? Visit our Tennessee multifamily loan page. For other commercial property types, explore our Tennessee commercial mortgage options. To compare all rates nationwide, see commercial mortgage rates.
2026 Tennessee Apartment Loan Market Overview
Entering 2026, Tennessee presents a high-growth apartment market supported by population inflows, job expansion, and a favorable tax environment. For borrowers evaluating apartment loans, the state benefits from strong renter demand across Nashville, Memphis, and Knoxville. This environment supports apartment building financing strategies focused on absorption, rent growth potential, and long-term demand tied to economic expansion.
Development activity across Tennessee has remained active, particularly in Nashville and surrounding growth corridors. While deliveries have increased, strong demand continues to absorb new units, maintaining balanced vacancy levels. For apartment lenders, Tennessee offers an underwriting profile centered on growth, tenant demand, and forward-looking income performance.
Nashville Anchors Tennessee Apartment Loans
Nashville remains the primary driver of apartment activity across Tennessee. In 2026, the metro is projected to add approximately 35,000 jobs, deliver roughly 12,000 units, maintain vacancy near 7.2%, and reach average effective rent around $1,700 per month. For borrowers seeking an apartment building loan, Nashville offers strong population growth, corporate relocation, and diversified employment.
Memphis Provides Logistics and Workforce Demand
Memphis offers a large, established apartment market supported by logistics, transportation, and distribution. The city has a population of approximately 630,000, median household income near $45,000, median rent around $1,200, and median home value near $180,000. These fundamentals support steady occupancy and income-focused investment strategies.
Knoxville Adds Growth and University Demand
Knoxville contributes a growing apartment market supported by education and regional employment. The city has a population of approximately 195,000, median household income near $55,000, median rent around $1,350, and median home value near $280,000. This supports steady renter demand and growth-oriented investment opportunities.
Rent Levels Reflect Southeast Growth Trends
Tennessee continues to see rising rent levels driven by migration and job growth. Nashville is projected near $1,700 per month, with Knoxville and Memphis lower depending on submarket. This allows borrowers to structure apartment loans across both core and growth-oriented investment strategies.
2026 Tennessee Apartment Loan Market Forecast
- Employment: Nashville is projected to add approximately 35,000 jobs.
- Construction: Nashville is projected to deliver roughly 12,000 units.
- Vacancy: Vacancy is projected near 7.2%.
- Rent: Average effective rent is projected near $1,700 per month.
For investors comparing apartment loans in Tennessee, 2026 reflects a market driven by growth and migration. Nashville provides the primary scale, while Memphis and Knoxville offer complementary opportunities across logistics, workforce housing, and university-driven demand.
2026 Nashville Tennessee Apartment Loan Market Overview
Nashville is Tennessee's largest city and the dominant anchor for apartment loans in Tennessee, ranked the #2 U.S. metro for job growth and income potential among the nation's 100 largest metros, anchored by HCA Healthcare, the world's largest for-profit healthcare company headquartered in Nashville, Vanderbilt University Medical Center, Amazon, Bridgestone Americas, and a rapidly growing technology sector. Tennessee has no state income tax on wages, making Nashville one of the most tax-advantaged major metros in the nation. The city has a population of approximately 712,581 residents as of 2026, growing at approximately 0.54% annually, with the broader Nashville MSA at approximately 1.333 million people and projected to reach 1.422 million by 2030. The median household income is approximately $77,371 and the median property value is approximately $388,516 to $443,000. Approximately 134,950 renter-occupied households represent approximately 46% of all occupied housing units. Current data as of February 21, 2026 shows the average apartment rent at approximately $1,825 per month, up approximately 0.84% year-over-year, with vacancy at approximately 8.5% at cyclical highs as a post-peak supply correction runs its course. Rents are projected to approach approximately $1,700 per month average and return to approximately 3.3% historical annual growth as the supply pipeline empties in 2026 to 2027. These fundamentals support active demand for Tennessee apartment loans in the state's primary market.
Nashville Tennessee Apartment Loan Rates and Financing in 2026
Financing conditions for Tennessee apartment loans remain active in Nashville in 2026, with lenders supporting stabilized and growth assets near HCA Healthcare's corporate campus, Vanderbilt University's medical and academic district, and the East Bank redevelopment's approximately 550-acre mixed-use urban remodel adjacent to the Cumberland River. The median property value of approximately $388,516 to $443,000 creates meaningful homeownership barriers that structurally anchor the approximately 46% renter-occupied rate. Developers project 2026 to 2027 as "a period of low supply and high demand" as the pipeline empties, with rent growth expected to stabilize approaching the pre-pandemic historical average of approximately 3.3%. For borrowers seeking an apartment building loan in Nashville, the city's employers adding approximately 22,000 positions in 2025, a contracting supply pipeline, and Tennessee's no-income-tax competitive advantage for worker recruitment provide a compelling underwriting profile within the broader Tennessee apartment building financing landscape.
Trends in the Nashville Tennessee Apartment Market
Nashville's rental market benefits from the most diversified major employer base in the Southeast. HCA Healthcare, the world's largest for-profit healthcare company, is headquartered in Nashville. Vanderbilt University Medical Center is one of the nation's leading academic medical centers. The State of Tennessee employs approximately 26,000 workers across agencies in the capital, and the federal government approximately 13,500 local workers. Amazon, Nissan North America, Bridgestone Americas, Dollar General, and Asurion add Fortune 500 corporate employment. Vanderbilt University awarded approximately 5,142 degrees in 2022 and Belmont University approximately 2,279 degrees. Nashville's major industries span healthcare management, automotive, finance, higher education, insurance, music production, and technology, making it one of the most economically diversified major metros in the U.S. Employers added approximately 22,000 positions in 2025, a 1.9% increase. The city's median age of approximately 34.5 years and 25 to 34 age group at 37% of renters reflect a dominant young professional demographic. These fundamentals continue to attract Tennessee apartment lenders evaluating the state's primary market.
Nashville Tennessee Apartment Loan Rent Levels in 2026
As of February 21, 2026, the average apartment rent in Nashville is approximately $1,825 per month, up approximately 0.84% year-over-year from $1,810. Rents are forecast at approximately $1,700 per month as the supply correction continues to stabilize toward the pre-pandemic growth trajectory. By unit type: studios average approximately $1,534/month, one-bedrooms average approximately $1,671/month, two-bedrooms average approximately $2,013/month, and three-bedrooms average approximately $2,336/month. Approximately 37% of all Nashville rentals are priced between $1,501 and $2,000 per month. West Nashville commands the tightest vacancy at approximately 6.5% reflecting lower new supply. Nashville rents are below the national median on a gross rent basis, supporting consistent underwriting for apartment loans in Tennessee where HCA Healthcare and Vanderbilt demand anchor durable absorption across all market segments.
Nashville Tennessee Apartment Loan Supply and Demand in 2026
Nashville is transitioning from a decade-high supply cycle toward a tightening market in 2026 and 2027. Following record deliveries in 2023 and 2024, completions declined to approximately 8,900 units in 2025, a 24% reduction from the prior year, with developers projecting 2026 to 2027 as "a period of low supply and high demand." Vacancy reached a cyclical high of approximately 8.5% in 2025, with Class A reaching approximately 9.0%, but this is expected to ease as the emptying pipeline absorbs into steady employer-driven household formation. Submarket performance varies significantly: Downtown vacancy reached approximately 9.6% while West Nashville held at approximately 6.5%. Approximately 34% of Nashville's rental stock was built between 1970 and 1989, creating a substantial value-add inventory base. Two-bedroom units make up the largest share at approximately 40% of all units. For borrowers pursuing apartment building financing in Tennessee, Nashville's sharply declining supply pipeline, consistent 22,000-job annual employment gains, and projected return to historical 3.3% rent growth support an improving underwriting trajectory through 2026.
Opportunities for Apartment Investment in Nashville Tennessee
Investors pursuing a Tennessee apartment loan in Nashville in 2026 are focused on growth and long-term demand from HCA Healthcare, Vanderbilt, and Amazon employment anchors where professional incomes averaging approximately $77,371 median household and Tennessee's zero income tax advantage support consistent above-average rent capacity, value-add acquisitions in the 1970s through 1990s vintage stock where the post-supply-peak pricing correction has created more favorable entry costs than the 2022 to 2023 cycle high, and stabilized holds in West Nashville and suburban corridors where vacancy of approximately 6.5% and limited new supply pipelines deliver the strongest near-term occupancy. The East Bank redevelopment of approximately 550 acres adjacent to downtown signals transformational long-term demand creation. For Tennessee apartment lenders evaluating the state's primary market, Nashville offers the #2 U.S. metro ranking for job growth, an emptying supply pipeline projecting a low-supply environment through 2027, and Tennessee's no-income-tax competitive advantage that supports strong long-term performance for apartment building loans throughout the metro.
2026 Memphis Tennessee Apartment Loan Market Overview
Memphis is Tennessee's second-largest city and a high-yield workforce housing market for apartment loans in Tennessee, anchored by FedEx's global headquarters, the busiest cargo airport in the United States and second-busiest in the world, St. Jude Children's Research Hospital, International Paper, AutoZone, and a healthcare sector that accounts for approximately one in nine jobs. Memphis holds three Fortune 500 headquarters and ranks as the third-largest trucking corridor and fifth-largest inland port in the nation. The city has a population of approximately 606,465 to 618,980 residents as of 2026, with the broader Memphis MSA spanning nine counties across West Tennessee, eastern Arkansas, and northwest Mississippi. The median household income is approximately $44,600 and the median property value is approximately $169,000 as of 2024. Approximately 134,421 renter-occupied households represent approximately 53% of all occupied housing units, making Memphis a majority-renter city. Current data through late 2025 shows the average apartment rent at approximately $1,131 to $1,135 per month, up approximately 0.86 to 0.88% year-over-year, with overall vacancy at approximately 13.6% but improving, with net absorption of approximately 1,700 units in 2024, the third-highest in the past decade. Tennessee has no state income tax on wages. These fundamentals support income-focused demand for Tennessee apartment loans in one of the nation's highest-yield workforce housing markets.
Memphis Tennessee Apartment Loan Rates and Financing in 2026
Financing conditions for Tennessee apartment loans remain active in Memphis in 2026, with lenders supporting stabilized assets with consistent income near FedEx's global headquarters and superhub, the St. Jude and Methodist Le Bonheur Healthcare medical corridors, and the Downtown and Midtown submarkets with improving absorption. The median property value of approximately $169,000 creates some of the most favorable per-unit acquisition costs of any major Tennessee city, and with rents at approximately $1,131 per month average, gross rent yields compare favorably to markets with significantly higher acquisition costs. The three-star property segment recorded approximately 1.5% rent growth in 2024, the strongest cohort, confirming workforce housing as the most resilient investment class. For borrowers seeking an apartment building loan in Memphis, the city's improving absorption trajectory, a construction pipeline at a five-year low with approximately 1,400 units under construction at end of 2024, and FedEx and St. Jude institutional permanence provide a consistent underwriting profile within the broader Tennessee apartment building financing landscape.
Trends in the Memphis Tennessee Apartment Market
Memphis' rental market is defined by two structural pillars that are essentially recession-proof. The logistics and transportation sector leads all employment at approximately 39,868 workers, anchored by FedEx's global headquarters which employs approximately 32,333 local jobs and operates the world's second-busiest cargo airport, plus Memphis' status as the third-largest trucking corridor and fifth-largest inland port in the nation. Healthcare and social assistance follows at approximately 38,301 workers, anchored by St. Jude Children's Research Hospital, Methodist Le Bonheur Healthcare, Baptist Memorial Healthcare, University of Tennessee Health Science Center, and a regional hospital network of 19 hospitals with over 4,100 beds. Retail trade employs approximately 29,930 workers, supported by AutoZone and International Paper corporate operations. The University of Memphis awarded approximately 5,018 degrees in 2023 and UT Health Science Center approximately 1,139 degrees. A $180 million Brooks Museum relocation downtown is projected to generate over $26 million in annual economic impact. These fundamentals continue to attract Tennessee apartment lenders evaluating the state's second-largest market.
Memphis Tennessee Apartment Loan Rent Levels in 2026
The average apartment rent in Memphis is approximately $1,131 to $1,135 per month, up approximately 0.86 to 0.88% year-over-year. By unit type: studios average approximately $973 to $976/month, one-bedrooms average approximately $1,068 to $1,072/month, two-bedrooms average approximately $1,140 to $1,148/month, and three-bedrooms average approximately $1,357 to $1,363/month. Approximately 44.6% of all Memphis rentals are priced under $1,000 per month, reflecting the city's substantial affordable workforce housing inventory. Premium submarkets command meaningfully higher rents: Downtown one-bedrooms exceed approximately $1,500/month, Germantown two-bedrooms reach approximately $1,800/month, and Midtown one-bedrooms average approximately $1,300/month. Memphis rents are substantially below the national average, supporting some of the most favorable initial cap rates of any major Tennessee city. These levels support consistent underwriting for apartment loans in Tennessee where FedEx and St. Jude demand anchor year-round workforce absorption.
Memphis Tennessee Apartment Loan Supply and Demand in 2026
Memphis' rental market broke a two-year streak of declining demand in 2024, recording net absorption of approximately 1,700 units, the third-highest annual total in the past decade, and improving overall vacancy by 30 basis points to approximately 13.6%. Units under construction fell to approximately 1,400 at end of 2024, a five-year low, with approximately 25% fewer completions projected in 2025 relative to 2024's approximately 3,000 units, creating an improving supply-demand balance. Most new development targets the high-end market, leaving the mid-range and affordable segments with limited new supply that supports occupancy for existing three-star and below properties where rent growth led at approximately 1.5%. Memphis experienced approximately 3,000 housing unit completions in 2024, insufficient to meet total demand. Approximately 52% of Memphis' rental stock was built between 1950 and 1989, creating a large value-add renovation base. For borrowers pursuing apartment building financing in Tennessee, Memphis' returning absorption, five-year-low construction pipeline, and FedEx and healthcare institutional permanence support an improving underwriting trajectory.
Opportunities for Apartment Investment in Memphis Tennessee
Investors pursuing a Tennessee apartment loan in Memphis in 2026 are focused on income stability and workforce demand from FedEx's approximately 32,333 local employees and the healthcare sector's approximately 38,301 workers where logistics and medical professional incomes support consistent rent capacity, value-add acquisitions in the large 1950s through 1970s vintage stock where Memphis' median property value of approximately $169,000 delivers some of the highest gross rent yield-on-cost metrics of any major Tennessee market, and stabilized workforce holds in the three-star segment where approximately 1.5% rent growth in 2024 outpaced the overall market and improving absorption signals continued recovery. Memphis rents hit a record high in 2025, rising approximately 1.9% year-over-year to approximately $1,274. For Tennessee apartment lenders evaluating the state's second-largest market, Memphis offers FedEx global logistics permanence, St. Jude and Methodist Le Bonheur healthcare anchors, and a returning absorption cycle that supports strong long-term income performance for apartment building loans throughout the metro.
2026 Knoxville Tennessee Apartment Loan Market Overview
Knoxville is Tennessee's third-largest city and a growing university and research-anchored market for apartment loans in Tennessee, anchored by the University of Tennessee-Knoxville, Oak Ridge National Laboratory, Covenant Health, and the U.S. Department of Energy's East Tennessee complex, with the Great Smoky Mountains National Park serving as the most visited national park in the country and a driver of exceptional regional in-migration. Tennessee has no state income tax on wages, supporting Knoxville's cost-of-living advantage below the national average. The city has a population of approximately 195,185 to 202,469 residents as of 2026, growing at approximately 0.93 to 1.0% annually, having grown approximately 4.8 to 5.88% since the 2020 census. The median household income is approximately $50,994 to $54,039 and the median property value is approximately $214,000 to $239,700 as of 2024. Approximately 45,256 to 45,360 renter-occupied households represent approximately 53 to 54% of all occupied housing units, making Knoxville a majority-renter city. Current data as of March 23, 2026 shows the average apartment rent at approximately $1,745 per month and the median rent at approximately $1,116 to $1,625 per month, with Knoxville maintaining occupancy rates of approximately 96 to 97% even through recent supply deliveries, among the tightest in the state. These fundamentals support active demand for Tennessee apartment loans in the state's East Tennessee hub.
Knoxville Tennessee Apartment Loan Rates and Financing in 2026
Financing conditions for Tennessee apartment loans remain favorable in Knoxville in 2026, with lenders supporting growth-oriented assets near the University of Tennessee campus, Oak Ridge National Laboratory's research corridor approximately 25 miles west, and the Downtown Knoxville and South Waterfront premium submarkets. The median property value of approximately $214,000 to $239,700, approximately 13% below the national median, creates favorable per-unit acquisition cost structures relative to the rent levels being achieved. The home-value-to-income ratio of approximately 4.2x is moderate by national standards, and affordability pressures in the for-sale market are keeping renters in place longer than usual, supporting occupancy stability. For borrowers seeking an apartment building loan in Knoxville, the city's occupancy of approximately 96 to 97%, consistent University of Tennessee enrollment, and Oak Ridge National Laboratory research workforce provide a compelling underwriting profile within the broader Tennessee apartment building financing landscape.
Trends in the Knoxville Tennessee Apartment Market
Knoxville's rental market benefits from one of the most recession-resistant employer combinations in the Southeast. The University of Tennessee-Knoxville awarded approximately 8,489 degrees in 2023, the most of any institution in the city, and anchors consistent student, faculty, and staff renter demand year-round. Oak Ridge National Laboratory, the U.S. Department of Energy's largest science and energy laboratory, employs thousands of scientists, engineers, and technical professionals in the metro area, generating high-income renter demand. Covenant Health and the University of Tennessee Medical Center, with approximately 690 beds, anchor the healthcare sector, which leads city employment at approximately 13,194 workers. Retail trade employs approximately 12,727 workers and educational services approximately 11,629 workers. Knoxville is the gateway to the Great Smoky Mountains National Park, driving sustained regional in-migration and tourism employment. The city's median age of approximately 33.5 years and 15 to 24 age group at 21% of renters reflect one of the youngest renter demographics in Tennessee. These fundamentals continue to attract Tennessee apartment lenders evaluating the state's East Tennessee market.
Knoxville Tennessee Apartment Loan Rent Levels in 2026
As of March 23, 2026, the average apartment rent in Knoxville is approximately $1,745 per month, and the median rent is approximately $1,625 as of March 2026. By unit type: studios average approximately $1,161 to $1,204/month, one-bedrooms average approximately $1,064 to $1,373/month, two-bedrooms average approximately $1,345 to $1,614/month, and three-bedrooms average approximately $1,986 to $2,093/month. Approximately 42 to 43% of all Knoxville rentals are priced between $1,001 and $1,500 per month. Downtown Knoxville commands the highest rents at approximately $1,902 to $2,469/month for one-bedrooms and South Waterfront averaging approximately $2,695/month. Knoxville's median rent is approximately 4% below the national average, confirming favorable affordability relative to a market maintaining 96 to 97% occupancy. These levels support consistent underwriting for apartment loans in Tennessee where University of Tennessee and Oak Ridge National Laboratory demand anchor year-round absorption.
Knoxville Tennessee Apartment Loan Supply and Demand in 2026
Knoxville carries the tightest occupancy profile of any major Tennessee city, maintaining approximately 96 to 97% occupancy even with recent new deliveries, as affordability pressures in the for-sale market keep renters in place longer and University of Tennessee enrollment anchors annual household formation. Approximately 1,000 to 1,300 units were due in 2025, a pace significantly below the Nashville market, providing a more balanced supply environment. Approximately 45% of Knoxville's rental stock was built between 1970 and 1999, with the 1970s vintage representing approximately 19% of all units, creating a substantial value-add renovation base. Two-bedroom units make up the largest share at approximately 41% of all units. The 25 to 34 age group represents approximately 26% of renters, confirming Knoxville's appeal to young professionals drawn by the UT research ecosystem. For borrowers pursuing apartment building financing in Tennessee, Knoxville's 96 to 97% occupancy, below-national-average acquisition costs, and Oak Ridge National Laboratory and University of Tennessee institutional permanence support a consistently strong underwriting environment.
Opportunities for Apartment Investment in Knoxville Tennessee
Investors pursuing a Tennessee apartment loan in Knoxville in 2026 are focused on growth and long-term demand from the University of Tennessee campus where approximately 8,489 annual degrees and a dominant young renter demographic support enrollment-cycle income stability, Oak Ridge National Laboratory where Department of Energy research professional salaries anchor high-income renter demand in the western metro corridor, and Downtown and South Waterfront premium stabilized holds where rents of approximately $1,902 to $2,695/month reflect the strongest submarket pricing in East Tennessee. Knoxville's median property value of approximately $214,000 to $239,700, approximately 13% below the national median, combined with Tennessee's zero income tax advantage, provides compelling entry economics. For Tennessee apartment lenders evaluating the state's East Tennessee market, Knoxville offers 96 to 97% occupancy the tightest in the state, University of Tennessee and Oak Ridge National Laboratory institutional permanence, and below-national-average acquisition costs that support 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 Tennessee 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 Tennessee
At Select Commercial, we arrange financing for a wide range of Tennessee 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 Tennessee Borrowers Choose Select Commercial
Thousands of apartment building investors trust Select Commercial for our direct, transparent approach and proven expertise in the Tennessee 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 Tennessee Apartment Loans
Tennessee 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 Tennessee. 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 Tennessee
These agency-backed options offer competitive fixed rates, non-recourse terms, and simplified underwriting for qualified apartment investors.
Tennessee Apartment Building Financing
Select Commercial provides apartment building financing and Tennessee commercial mortgages throughout the state of Tennessee including but not limited to the areas below.