Dallas Multifamily Loans: Apartment & Multi-Unit Financing [2026 Guide]

Why Is Dallas One of the Strongest Markets for Multifamily Investment in 2026?

Dallas-Fort Worth has been named the top real estate market to watch for the second consecutive year, according to PwC's Emerging Trends report, and multifamily investors are paying attention. The metro added roughly 8,900 new residents to the city of Dallas alone in 2024, while Fort Worth officially crossed the one-million-resident threshold, making it the 12th-largest city in the country.

For apartment investors, this growth translates directly into rental demand. Whether you are eyeing a 12-unit building in Oak Lawn or a 200-unit garden-style community in Frisco, the financing you choose determines whether a solid deal becomes a strong investment. Dallas multifamily loans are available through agency lenders (Fannie Mae, Freddie Mac), HUD/FHA programs, bridge lenders, DSCR products, and CMBS conduits.

The engine behind DFW's growth is corporate relocation. Dallas ranked first among all U.S. metros for corporate headquarters relocations from 2018 to 2024, attracting 100 new corporate headquarters over that six-year span. In 2024 alone, the metro drew 13 new headquarters, with major project announcements surging to 97. Toyota's North American headquarters in Plano, Goldman Sachs' expanding campus, Caterpillar's global headquarters relocation, and more recent moves by Nasdaq (second headquarters), KFC (relocating to Plano), and Verily Life Sciences all fuel housing demand across the metro.

This combination of population growth, corporate migration, and a rapidly declining construction pipeline makes 2026 a strategic window for acquiring and financing multifamily properties in Dallas.

What Are the Current Dallas Multifamily Loan Rates?

Multifamily loan rates in Dallas vary by product type, property class, leverage, and borrower experience. As of early 2026, here is where rates stand across the major programs available to Dallas apartment investors.

HUD/FHA 223(f) loans offer the lowest rates in the market, starting around 5.64% with terms up to 35 years and leverage up to 85% LTV. These loans work best for stabilized properties with occupancy above 90% and strong trailing financials. The tradeoff is a longer closing timeline, typically 90 to 180 days.

Fannie Mae and Freddie Mac agency loans are pricing in the 5.75% to 6.50% range for 5 to 10-year fixed terms. These programs are the workhorses of multifamily finance, offering non-recourse structures and streamlined underwriting for properties with five or more units.

For investors targeting value-add opportunities in Dallas, bridge loans provide 12 to 36-month terms with rates between 7.00% and 9.50%. Bridge financing is especially relevant in today's market, where elevated vacancy in certain submarkets creates opportunities to acquire, renovate, and re-lease apartment communities at higher rents.

DSCR loans qualify borrowers based on property cash flow rather than personal income. This is particularly useful for investors with multiple properties or complex tax situations. You can calculate your DSCR here to see whether your property meets typical minimum thresholds of 1.20x to 1.25x.

How Is the Dallas Apartment Market Performing Right Now?

The Dallas-Fort Worth multifamily market is navigating the tail end of a historic supply cycle, and the data tells an encouraging story for 2026 buyers. Understanding these dynamics is essential for both investment decisions and loan structuring.

Vacancy reached 12.0% in Q4 2025, reflecting the impact of roughly 33,000 units delivered over the trailing 12 months. However, demand has been remarkably resilient. DFW absorbed approximately 25,000 units in 2025, trailing only New York City nationally and outpacing Austin, Atlanta, and Phoenix.

Rent growth has been soft, declining 1.8% year-over-year in late 2025, marking the eighth consecutive quarter of negative rent performance. Average asking rents sit at approximately $1,486 per month, roughly 13% below the national average of $1,628. This relative affordability is a structural advantage that continues to attract domestic migration from higher-cost metros on both coasts.

The supply picture is shifting dramatically in investors' favor. New deliveries are projected to decline roughly 62% from 2025 levels, and construction starts have fallen 30% year-over-year. The 31,000 units currently underway represent the lowest pipeline since 2015. Analysts project this supply contraction will support occupancy recovery through 2026 and return rent growth to positive territory, with Fannie Mae already reporting 2.8% rent growth on core properties.

Class B properties saw rents increase 1.7%, Class C gained 3.4%, and value-add properties led with 5.38% growth. For investors considering renovation plays, this indicates tenants are willing to pay for upgraded units in the Dallas market.

Which Dallas Submarkets Offer the Best Multifamily Investment Opportunities?

Dallas-Fort Worth's diverse submarkets each present distinct investment profiles, and lenders evaluate location risk alongside property fundamentals when underwriting your loan. Here is how some of the metro's most active multifamily areas compare.

Uptown and Knox-Henderson represent Dallas's premier urban multifamily corridor. High-rise and mid-rise luxury apartments dominate the landscape, attracting young professionals drawn to the walkability, dining, and nightlife. Cap rates for stabilized Class A product in Uptown run tight at 4.8% to 5.2%, but strong rent premiums and low turnover make these assets attractive to institutional buyers and agency lenders.

Deep Ellum and Bishop Arts have evolved from arts districts into sought-after multifamily submarkets. Deep Ellum's proximity to Downtown and Baylor Medical Center supports steady demand, while Bishop Arts in North Oak Cliff offers a blend of new construction and adaptive reuse. These neighborhoods offer slightly higher yields than Uptown, with cap rates of 5.0% to 5.5% and value-add upside in older stock.

Oak Lawn sits between Uptown and the Medical District, offering a mix of mid-century apartment buildings and newer construction. Smaller multifamily properties (10 to 40 units) in Oak Lawn present renovation opportunities with moderate basis, making them suitable for bridge loan strategies.

Lake Highlands has emerged as a family-oriented submarket with strong schools and relatively affordable rents. The area appeals to suburban renters who want proximity to urban Dallas without the price premium, and lenders view the stable demographics favorably.

Frisco, Plano, and McKinney are the northern suburban growth engines of DFW. Frisco alone has attracted major employers and sports venues, while Plano hosts Toyota's North American headquarters and KFC's incoming global headquarters. McKinney and Allen continue to draw families seeking quality schools and newer housing stock. Cap rates in these suburbs range from 5.3% to 6.0%, with strong absorption and population growth supporting stable occupancy.

The northern suburbs broadly concentrate the lion's share of new construction. The pipeline is focused on Frisco/Prosper, Allen/McKinney, and Denton County, all driven by corporate employment centers and high-quality school districts.

What Types of Multifamily Loans Are Available in Dallas?

Dallas investors have access to every major multifamily financing product. The right choice depends on your property type, investment strategy, hold period, and borrower profile.

Fannie Mae and Freddie Mac Agency Loans are the most common financing for stabilized Dallas apartment properties. These programs offer 5 to 30-year terms, fixed and adjustable rate options, non-recourse structures, and LTVs up to 80%. They work best for properties with five or more units, occupancy above 90%, and stable operating history.

HUD/FHA Multifamily Loans (223f for acquisition and refinance, 221d4 for new construction) provide the longest terms (up to 35 years) and lowest rates in the market. The extended timeline to close, typically 4 to 6 months, is the primary tradeoff.

Bridge Loans are critical for Dallas investors looking at the current oversupply environment as a buying opportunity. A bridge loan provides short-term capital for acquisition and renovation, with interest-only payments during the business plan execution period. Once the property is stabilized, you refinance into permanent debt at a lower rate.

DSCR Loans underwrite the property's income rather than the borrower's personal financials. This is ideal for investors who own multiple properties or have complex income structures. Use our DSCR calculator to estimate your coverage ratio before applying.

CMBS Loans offer competitive rates for larger properties valued at $2 million and above. These loans are securitized and sold to bond investors, which can limit prepayment flexibility but provides access to capital for a wide range of borrower profiles.

Bank and Credit Union Portfolio Loans from DFW-area lenders offer flexible terms and faster closing timelines. Local lenders familiar with Dallas submarkets may be more comfortable underwriting properties in transitional neighborhoods.

How Do Lenders Evaluate a Dallas Multifamily Property?

Understanding the lender's underwriting framework helps you prepare a stronger application and negotiate better terms. Here are the key factors that determine your loan approval and pricing.

The Debt Service Coverage Ratio (DSCR) is the primary metric. Lenders require the property's net operating income to cover debt payments by at least 1.20x to 1.25x. In Dallas's current environment, with vacancy at 12%, lenders will stress-test your income assumptions carefully. Use our commercial mortgage calculator to model different occupancy and rate scenarios.

Loan-to-Value (LTV) typically caps at 75% to 80% for conventional programs, with HUD loans extending to 85%. With the average Dallas-Fort Worth price per unit at approximately $166,783, a 75% LTV on a 50-unit property at $165,000 per unit would produce a loan of approximately $6.2 million on an $8.25 million acquisition.

Property condition and age significantly impact underwriting. The lender will order a property condition assessment and may require capital reserves for deferred maintenance. Many of Dallas's value-add opportunities involve Class B and C product built in the 1970s through 1990s, which will require renovation budgets factored into the financing plan.

Submarket performance matters. Lenders track vacancy trends, rent comps, and construction pipeline in the immediate area. Properties in submarkets with declining vacancy and limited new supply, such as established Inner Loop neighborhoods and mature suburban nodes, receive more favorable terms.

Borrower experience is evaluated alongside property metrics. First-time multifamily buyers may face higher equity requirements or need an experienced key principal on the loan.

What Is the Step-by-Step Process for Getting a Dallas Multifamily Loan?

The timeline from initial inquiry to closing varies by loan product, but the framework is consistent. Here is what to expect when applying for a Dallas multifamily loan.

Before you begin, assemble your documentation: trailing 12-month operating statements (T-12), current rent roll, personal financial statements, entity documents (operating agreement, articles of organization), and a brief business plan outlining your investment thesis.

For agency and conventional loans, expect a 45 to 75-day closing timeline. Bridge loans can close faster, often within 21 to 45 days. HUD/FHA loans require the most patience, typically 90 to 180 days from application to closing.

An experienced commercial mortgage broker who knows the DFW market can streamline this process significantly. Established lender relationships mean better rate shopping, faster term sheet turnaround, and proactive problem-solving during underwriting.

Ready to explore your options? Contact our team to discuss your Dallas multifamily financing needs.

What Should Dallas Multifamily Investors Watch for in 2026?

Several market dynamics will shape both investment opportunities and financing conditions for Dallas apartment properties throughout 2026.

The supply correction is accelerating. New deliveries are projected to drop 62% from 2025 levels, and the active pipeline sits at the lowest point since 2015. This is the single most important factor for existing property owners and new buyers alike. Less competition from new product means improving occupancy and the return of pricing power for landlords.

Absorption remains strong. DFW absorbed 25,000 units in 2025, the second-highest total in the country behind New York. This demand is structurally supported by population growth, corporate relocation, and the affordability premium Dallas offers relative to coastal markets.

Interest rate trajectory. Multifamily borrowing costs have stabilized in the 5.5% to 7.0% range for most products. Any Federal Reserve rate cuts would compress cap rates and push property values higher, making current acquisition and rate-lock strategies potentially advantageous.

Luxury segment oversupply. The Class A luxury segment, particularly in Uptown and the northern suburbs, faces the most pressure from new deliveries. Concessions including one to two months of free rent remain common for new lease-ups. Investors in this segment should budget conservatively for lease-up timelines.

Value-add opportunity window. With cap rates averaging 5.7% market-wide and suburban value-add deals available at 5.7% to 6.3%, there is meaningful spread between acquisition yields and stabilized returns. Workforce housing in areas like Garland, Grand Prairie, and Mesquite offers cap rates of 6.5% to 7.2% with renovation upside.

Northern corridor momentum. Frisco, Plano, McKinney, and Allen continue to benefit from corporate employers, strong schools, and infrastructure investment. Population growth in these suburbs outpaces the broader metro, and lenders view these submarkets favorably for multifamily underwriting.

What Are the Most Common Questions About Dallas Multifamily Loans?

What is the minimum loan amount for a Dallas multifamily property?

Most commercial multifamily loan programs start at $500,000 to $1,000,000. For smaller properties (5 to 10 units), some DFW-area portfolio lenders offer loans starting at $250,000. HUD/FHA programs typically require a minimum of $2 million. At Dallas's average price per unit of roughly $166,000, a 20-unit property would need a loan in the $2.5 million to $2.7 million range at 75% to 80% LTV.

How does Dallas's elevated vacancy rate affect my ability to get a loan?

With the metro vacancy rate around 12%, lenders apply more conservative underwriting assumptions, including higher vacancy reserves and lower projected rental income. However, the declining construction pipeline and strong absorption trends are working in borrowers' favor. Properties with in-place occupancy above 90% and demonstrated rent collections will be evaluated more favorably than broad market statistics suggest. Lenders distinguish between market-wide vacancy driven by new supply and individual property performance.

Can I finance a value-add multifamily property in Dallas right now?

Absolutely. Bridge loans are designed for exactly this scenario. These short-term loans (12 to 36 months) provide acquisition capital plus renovation funds, typically held in a reserve account and disbursed as work is completed. Dallas's current market, with Class B and C properties available at 5.7% to 7.2% cap rates and tenants demonstrating willingness to pay higher rents for upgraded units (value-add properties showing 5.38% rent growth), makes a strong case for renovation strategies.

What DSCR is required for a Dallas apartment loan?

Most lenders require a minimum debt service coverage ratio of 1.20x to 1.25x, meaning the property's net operating income must be 120% to 125% of annual debt service payments. Some DSCR loan programs accept ratios as low as 1.0x for strong borrowers with well-located properties. You can calculate your property's DSCR to see where you stand before applying.

Are multifamily loan rates expected to drop in Dallas in 2026?

Multifamily rates have stabilized after the Federal Reserve's tightening cycle, with most products pricing between 5.5% and 7.5% depending on the loan type. If the Fed begins cutting rates, borrowing costs could decline modestly. However, many experienced investors are locking rates now rather than waiting, particularly for acquisitions where improving fundamentals could push property values higher. Rate lock options are available at application for agency loans.

How long does it take to close a multifamily loan in Dallas?

Bridge loans close fastest at 21 to 30 days. Conventional bank loans take 45 to 60 days. Fannie Mae and Freddie Mac agency loans require 45 to 75 days. HUD/FHA loans have the longest timeline at 90 to 180 days. Having your T-12, rent roll, entity documents, and business plan organized before you begin the process can shave weeks off the timeline. Reach out to our team to discuss your property and timeline.