Texas Apartment Loan Rates
| TX 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 Texas apartment property.
Need a multifamily loan over $6 million? Visit our Texas multifamily loan page. For other commercial property types, explore our Texas commercial mortgage options. To compare all rates nationwide, see commercial mortgage rates.
2026 Texas Apartment Loan Market Overview
Entering 2026, Texas remains one of the most active apartment markets in the country. For borrowers evaluating apartment loans, the state combines population growth, lower living costs than many coastal markets, and broad-based renter demand across multiple major metros. Even after several years of elevated construction, demand for new apartments remains apparent across Texas, where last year's net absorption total matched or exceeded deliveries in the state's four major markets.
That backdrop continues to support apartment building financing across a range of strategies, though local fundamentals are beginning to diverge. Dallas-Fort Worth, Houston, and San Antonio all entered this year with vacancy below their long-term averages, while Texas overall is benefiting from rental demand that is expected to slightly outpace supply additions in 2026. For apartment lenders, that creates a statewide landscape where growth remains important, but selectivity around supply pressure and submarket positioning matters more than it did during the post-pandemic expansion.
Dallas-Fort Worth Anchors Texas Apartment Loans
Dallas-Fort Worth continues to set the tone for much of the state's apartment activity. In 2026, the metro is projected to add approximately 25,000 jobs, deliver roughly 21,000 units, post vacancy near 5.9%, and finish the year with average effective rent around $1,540 per month. For borrowers seeking an apartment building loan, Dallas-Fort Worth remains one of the most liquid large-scale apartment markets in the country, with tightening vacancy helping offset an elevated delivery slate.
Houston Adds Scale and In-Migration Appeal
Houston gives Texas another major metro with renter demand supported by affordability and job growth. The 2026 outlook calls for about 8,000 jobs added, approximately 9,000 units delivered, vacancy near 6.3%, and average effective rent around $1,410 per month. That combination supports apartment building financing in a market where lower housing costs continue to attract in-migration even as local supply patterns shift between urban and suburban submarkets.
San Antonio Reinforces Texas Apartment Demand
San Antonio adds a different layer to the Texas apartment story. In 2026, the metro is projected to add about 15,000 jobs, deliver roughly 3,500 units, hold vacancy near 6.8%, and reach average effective rent of approximately $1,200 per month. For apartment lenders, that reflects a market where a shrinking delivery pipeline and strong population growth are helping restore rent growth after several years of supply pressure.
Rent Levels Vary Across Texas Markets
Texas continues to offer a wide rent range across its major metros. Dallas-Fort Worth is projected near $1,540 per month, Houston near $1,410 per month, and San Antonio near $1,200 per month. That range gives borrowers multiple paths for structuring apartment loans, whether the focus is major-metro scale, value pricing, or a market where rent growth is returning as supply recedes.
2026 Texas Apartment Loan Market Forecast
- Employment: Dallas-Fort Worth is projected to add approximately 25,000 jobs, Houston about 8,000 jobs, and San Antonio about 15,000 jobs.
- Construction: Dallas-Fort Worth is projected to deliver roughly 21,000 units, Houston about 9,000 units, and San Antonio about 3,500 units.
- Vacancy: Dallas-Fort Worth vacancy is projected near 5.9%, Houston near 6.3%, and San Antonio near 6.8%.
- Rent: Average effective rent is projected near $1,540 in Dallas-Fort Worth, $1,410 in Houston, and $1,200 in San Antonio.
For investors comparing apartment loans in Texas, 2026 looks less like a single statewide story and more like a group of large-scale metros with different strengths. Dallas-Fort Worth provides scale and tightening fundamentals, Houston adds lower-cost appeal with durable demand, and San Antonio brings one of the state's more improving supply-demand setups. Together, they give apartment lenders multiple high-quality reference points across Texas.
2026 Dallas Fort Worth Texas Apartment Loan Market Overview
Dallas-Fort Worth is one of the primary drivers of apartment loans in Texas and remains one of the largest apartment markets in the country. Current 2026 forecast data points to about 25,000 jobs added, roughly 21,000 units delivered, vacancy near 5.9%, and average effective rent around $1,540 per month.
Dallas Fort Worth Texas Apartment Loan Rates and Financing in 2026
Financing conditions for Dallas Fort Worth apartment loans remain active in 2026, especially for stabilized apartment buildings and well-located long-term hold opportunities. For many borrowers, an apartment building loan here depends on balancing strong population gains with submarket supply exposure, particularly where newly delivered assets still face longer stabilization timelines.
Trends in the Dallas Fort Worth Texas Apartment Loan Market
Dallas-Fort Worth continues to benefit from in-migration and corporate relocation trends that rank among the strongest nationally. Many submarkets that absorbed heavy supply in recent years are now moving into a more favorable setup as deliveries pull back. That keeps the metro relevant for apartment lenders looking at large-market apartment opportunities in Texas.
Dallas Fort Worth Texas Apartment Loan Rent Levels in 2026
Average effective rent in Dallas-Fort Worth is projected near $1,540 per month in 2026. That still supports underwriting across a broad range of apartment properties where vacancy is tightening and rent growth is expected to stay roughly in line with the national forecast.
Dallas Fort Worth Texas Apartment Loan Supply and Demand
Supply and demand remain relatively balanced in Dallas-Fort Worth even with elevated deliveries. New supply is projected near 21,000 units, while vacancy is expected to tighten to around 5.9%. For borrowers seeking apartment building financing, that supports a more constructive large-market setup than the delivery pipeline alone might suggest.
Opportunities for Apartment Investment in Dallas Fort Worth Texas
Investors pursuing apartment loans in Dallas-Fort Worth are often targeting submarkets with improving vacancy trends, mid-tier assets that look well-positioned after several years of comparatively subdued rent growth, and airport-adjacent areas where recent leasing gains have stood out.
2026 Houston Texas Apartment Loan Market Overview
Houston remains one of the larger apartment markets in Texas for apartment loans. Current 2026 forecast data points to about 8,000 jobs added, roughly 9,000 units delivered, vacancy near 6.3%, and average effective rent around $1,410 per month.
Houston Texas Apartment Loan Rates and Financing in 2026
For borrowers pursuing an apartment building loan, Houston continues to offer a lower-cost primary market where strong in-migration and a large renter population help offset relatively higher vacancy. Financing remains most compelling where the supply outlook is more limited or where newer stabilized properties can provide more reliable cash flow.
Trends in the Houston Texas Apartment Loan Market
Houston is moving through a period where fundamentals are beginning to split by location. Outer-ring hubs and select urban-core areas continued to post rent growth late last year, while the metro's construction pipeline is set to contract sharply. That combination keeps Houston relevant for apartment lenders evaluating Texas apartment opportunities with stronger value orientation.
Houston Texas Apartment Loan Rent Levels in 2026
Average effective rent in Houston is projected near $1,410 per month in 2026. That still positions Houston as the lowest-cost primary market in the state, which can support renter retention and future rent gains where supply pressure is easing.
Houston Texas Apartment Loan Supply and Demand
Supply and demand remain manageable in Houston despite a projected vacancy rate near 6.3%. Deliveries are expected around 9,000 units, but this year's pipeline is only about half the prior five-year average. For many borrowers, that combination supports cleaner apartment building financing assumptions in select submarkets than the metrowide vacancy rate alone would imply.
Opportunities for Apartment Investment in Houston Texas
Investors using apartment loans in Houston are often looking for stabilized newer properties, submarkets with vacancy below the metro average, and areas where limited future supply could help reinforce performance, including parts of southeast Houston and neighborhoods with strong working-class renter demand.
2026 San Antonio Texas Apartment Loan Market Overview
San Antonio remains a meaningful apartment market in Texas for apartment loans. Current 2026 forecast data points to about 15,000 jobs added, roughly 3,500 units delivered, vacancy near 6.8%, and average effective rent around $1,200 per month.
San Antonio Texas Apartment Loan Rates and Financing in 2026
For a borrower seeking an apartment building loan, San Antonio stands out because its delivery pipeline is continuing to contract after the record level reached in 2024. That creates a more favorable setup for financing where strong employment and population growth are helping support renter demand even after a multi-year stretch of elevated vacancy.
Trends in the San Antonio Texas Apartment Loan Market
San Antonio continues to attract young adults and early-career renters, supported by healthcare, government, and defense-based employment. The metro is poised to end a three-year trend of rent declines as supply pressure fades and vacancy compresses. That combination keeps San Antonio relevant for apartment lenders looking at improving Texas apartment markets.
San Antonio Texas Apartment Loan Rent Levels in 2026
Average effective rent in San Antonio is projected near $1,200 per month in 2026. That provides a more affordable basis than most Texas major metros while still supporting the return of positive annual rent growth.
San Antonio Texas Apartment Loan Supply and Demand
Supply and demand are expected to improve further in San Antonio. Deliveries are projected near 3,500 units, while net absorption is expected to outpace new supply for a third straight year, pushing vacancy down to around 6.8%. For borrowers structuring apartment building financing, that reflects a metro moving toward a more balanced footing as deliveries slow.
Opportunities for Apartment Investment in San Antonio Texas
Investors pursuing apartment loans in San Antonio are often focused on areas tied to downtown revitalization, young professional demand, and long-term demographic growth. Reduced supply pressure and strong job creation make the metro increasingly relevant for long-hold strategies.
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 Texas 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 Texas
At Select Commercial, we arrange financing for a wide range of Texas 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 Texas Borrowers Choose Select Commercial
Thousands of apartment building investors trust Select Commercial for our direct, transparent approach and proven expertise in the Texas 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 Texas Apartment Loans
Texas 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 Texas. 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 Texas
These agency-backed options offer competitive fixed rates, non-recourse terms, and simplified underwriting for qualified apartment investors.
Texas Apartment Building Financing
Select Commercial provides apartment building financing and Texas commercial mortgages throughout the state of Texas including but not limited to the areas below.