Tucson, Arizona
Tucson Apartment Loans in 2026
For investors buying or refinancing apartment buildings in Tucson, we arrange loans of $1,500,000 or more with as much as 80% leverage, and qualified properties can start at 6.02%. Tucson apartment loans here run from university-area buildings near campus to garden complexes on the east and northwest sides. Outside Pima County, start with Arizona apartment loans; for bigger communities, our multifamily loans in Tucson; and for pricing, current commercial mortgage rates by loan type.
Get a Free QuoteTucson's 2026 Apartment Market: A Thin Pipeline and a Slow Return to Rent Growth
Investor interest in Tucson was picking up going into 2026, with demand concentrating in key development zones. The outlook rested on a construction pipeline that kept slowing and on stable vacancy, conditions that pointed to small rent gains.
A second-quarter 2026 forecast put deliveries at about 630 units, inventory growth of just 0.7% and the smallest total since 2020. With fewer deliveries, vacancy was expected to dip to 5.9% by year-end, which would still rank among the 10 highest rates across major U.S. markets. Hiring was forecast to be a modest positive, about 2,500 new jobs or 0.6%, after job losses in 2025.
Rents were forecast to rise about 0.8%, to an average effective rent of $1,160 a month by December.
What the Rent Data Shows This Fall
Rents here have flattened or slipped, depending on the source. Apartment List's figures for October 2026 show a median of $1,047, essentially unchanged from a year earlier at up 0.1%, with one-bedroom units at $874 and two-bedroom units at $1,121. RentCafe's figure, an average over properties with at least 50 units, last updated October 1, 2026, was $1,177, 3.13% below the $1,215 of a year before, and 48% of Tucson households rent. The two sources disagree on direction, which tells a lender the Tucson market is essentially flat.
Vacancy has been the bigger issue. HUD's December 2024 analysis measured apartment vacancy of 11.4% in the third quarter of 2024, and 11.0% in the University of Arizona market area. Published vacancy figures for Tucson vary widely by source and date, so lenders underwriting a Tucson apartment loan today want to see the property's own occupancy history, not a market average.
Tucson Apartment Loan Rates
Rates updated as of November 11, 2026
Starting rates assume a stabilized building with occupancy in line with its submarket. Student-oriented properties near campus are underwritten on their own lease history, so bring two years of it.
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.42% | Up to 80% |
| 7 Year Fixed | 6.45% | Up to 80% |
| 10 Year Fixed | 6.51% | Up to 80% |
- Cash-out refinances are acceptable
- Interest-only and non-recourse options
- Minimum 1.25x debt-service-coverage ratio
See Tucson Multifamily Rates Over $6 Million, Starting at 6.02%
Rates last updated November 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.
Tucson Submarkets From Campus to the Foothills
RentCafe's October 2026 neighborhood averages run from $3,231 in West University, beside the campus, to $789 in Dodge Flower. Northwest Tucson averages $2,627, Barrio Viejo $2,231, Bear Canyon on the east side $1,607 and Sam Hughes $1,041. HUD's 2024 analysis tracked new construction in Bear Canyon and near downtown: The Place at Mason Ranch, a 312-unit project in Bear Canyon, and The Bautista, a 256-unit mixed-use community in the Mercado District near downtown.
Each pocket underwrites differently. Near campus the lender studies pre-leasing and the student calendar; on the east and northwest sides it looks at how a property competes with newer garden communities. Tucson-area neighborhoods in our lending footprint:
- Downtown
- Sam Hughes
- West University
- Barrio Viejo
- Armory Park
- Catalina Foothills
- Casas Adobes
- Oro Valley
- El Presidio
- Rincon Heights
- Dunbar Spring
- Menlo Park
- Blenman-Elm
- Midtown
- Civano
- Drexel Heights
Choosing a Program for a Tucson Apartment Loan
Tucson buildings fit most program types, from agency small-balance loans to bank financing for value-add. Each program opens at roughly these levels:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae Small Loan | 6.42% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac SBL | 6.55% | Up to 80% | $2M to $10M small balance |
| FHA / HUD | 6.74% | Up to 85% | Highest leverage, longest term |
| Bank / portfolio | 6.50% | Up to 75% | Flexible, value-add |
| Bridge | 9.00% | Up to 80% LTC | Reposition, lease-up |
With vacancy elevated in parts of the market, the 1.25x debt-service-coverage minimum most lenders apply is tested against actual collections, so a strong occupancy history earns better terms. Larger loans belong on Tucson multifamily loans.
Rates last updated November 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.
Arizona Law, Taxes and Water: What a Tucson Lender Checks
No local rent control, and no city rental tax. Arizona preempts rent control on private housing: under A.R.S. 33-1329, "cities, including charter cities, or towns shall not have the power to control rents." The state also took away cities' ability to tax residential rentals after December 31, 2024, according to the Arizona Department of Revenue. Tucson itself did not levy that tax, but owners who also hold property in cities that did, such as South Tucson, stopped collecting it at the start of 2025.
Register with the assessor. State law (A.R.S. 33-1902) requires owners of residential rental property to register it with the county assessor, and the Pima County Assessor may charge up to $10 for an initial registration. Your Tucson lender will want to see that registration in the file.
Property tax with a built-in limit. Rental apartments are class four property under A.R.S. 42-12004, assessed at 10% of full cash value or limited value under A.R.S. 42-15004. Since Proposition 117 took effect for tax year 2015, the limited property value used for all property taxes can grow no more than 5% a year, which keeps the tax line predictable. The Pima County Assessor mails notices of value by March 1, and owners have 60 days to appeal.
Low closing costs. Arizona's constitution bars any new state or local tax or fee on conveying real estate (charges that existed at the end of 2007 were grandfathered), and the county recording fee is $30 per instrument under A.R.S. 11-475, so closing costs here stay low compared with high-tax states.
Water. Tucson's Central Arizona Project allocation is a little under 145,000 acre-feet a year, and the city could lose some Colorado River water under the post-2026 operating rules for the river, according to Arizona Public Media. Tucson Water holds a state assured water supply designation that will be re-evaluated in 2034. Lenders rarely change terms over it, but water is part of the long-term story for any Tucson building.
Financing Options in Tucson
Your property type sets the starting point; choose the matching path below:
Phoenix and the rest of Arizona are on Arizona apartment loans.
Refinancing a Tucson Apartment Complex
The refinance question here is usually about occupancy, not rate. A building that held its occupancy through the 2024 supply wave can refinance on strong trailing numbers, while one still leasing up may be better served by a short bridge loan until collections stabilize. We look at your trailing 12 months and the current rent roll first, then tell you which path the numbers support.
Arizona's 5% annual limit on limited property value also makes the expense side easier to project than in states that reassess fully every year, which helps a lender get comfortable with a long fixed term. If you are near the end of a loan from 2019 to 2021, compare a rate-and-term refinance with a smaller cash-out against holding until occupancy improves.
Tucson Apartment Building Loans for Students, Military and Retirees
Few markets mix student, military and retiree renters the way this one does, and each group shapes a different kind of building:
- Student-oriented buildings near the University of Arizona
- Garden-style complexes on the east and northwest sides
- Adobe and historic buildings in the central neighborhoods
- Workforce housing near Davis-Monthan Air Force Base
- Newer mixed-use buildings downtown
- Small portfolios of apartment properties
Tucson Multifamily Loans and Agency Financing
For larger communities, the two agencies, HUD and CMBS lenders all quote non-recourse loans. Agency loans can reach 80% of value with rates fixed for up to 30 years, and HUD's fully amortizing loans run longer still. Student housing has its own agency criteria, so we match those properties to lenders that specialize in them.
Our Tucson multifamily loans page covers the large-balance programs, while our agency pages break down how Fannie Mae and Freddie Mac each lend.
Tucson Multifamily Loan Rates
For larger balances, over $6 million
Beyond Apartments: Other Tucson Property Loans
We also arrange financing for commercial property in Tucson and around Pima County:
Nearby Apartment Loan Markets
Up Interstate 10 sits Phoenix, the other Arizona market with a page of its own:
Recent Apartment Loan Closings
Here are recent loans we placed around the country; a Tucson deal goes through the same multi-lender process.
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 Tucson Apartment Loan Quote
Share your Tucson rent roll and trailing 12-month operating statement, plus two years of lease history if the building serves students, and expect a written reply.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up