Fort Worth Multifamily Loans: Apartment Financing Guide [2026]

Why Is Fort Worth Emerging as a Top Multifamily Investment Market?

Fort Worth officially crossed the one-million-resident mark in 2025, reaching a population of 1,020,987 and cementing its position as the 11th-largest city in the United States. Between 2020 and 2025, Fort Worth grew at an 11.1% clip, faster than Austin (9.6%) and nearly every other major Texas metro. Sitting at the heart of the Dallas-Fort Worth metroplex (7.5 million residents and counting), the city's combination of affordability, job growth, and cultural appeal makes it one of the most compelling multifamily investment destinations in the Sun Belt.

For apartment investors and developers, this trajectory translates into sustained rental demand. Whether you are evaluating a 20-unit workforce housing complex near the Stockyards or a 250-unit Class A community along the Alliance corridor, the financing you select shapes your returns. Multifamily loans in Fort Worth are available through Fannie Mae, Freddie Mac, HUD/FHA, bridge lenders, DSCR programs, and CMBS conduits.

Fort Worth's economy has diversified well beyond its oil-and-cattle heritage. The Fort Worth-Arlington region added more than 95,000 jobs over the past three years, with trade, transportation, utilities, construction, healthcare, and hospitality leading the gains. Major employers including Lockheed Martin, American Airlines, BNSF Railway, Charles Schwab, and Deloitte anchor a stable employment base that supports long-term rental demand across the city's submarkets.

The city's visitor economy has also doubled over the past decade, now drawing nearly 12 million visitors annually and supporting more than 30,000 hospitality jobs. That tourism infrastructure, combined with downtown revitalization and residential growth, positions Fort Worth for continued multifamily demand well into the next decade.

What Are the Current Multifamily Loan Rates in Fort Worth?

Multifamily loan rates in Fort Worth vary by product type, leverage, property class, and borrower experience. As of early 2026, here is where rates stand across the major programs available to Fort Worth 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 are ideal 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 most common financing tool for stabilized apartment communities with five or more units. A significant tailwind for 2026: the Federal Housing Finance Agency raised multifamily loan purchase caps for Fannie Mae and Freddie Mac to $88 billion each, a 20.5% increase from 2025, signaling expanded credit availability for apartment borrowers nationwide.

For investors targeting renovation plays in Fort Worth, bridge loans provide 12 to 36-month terms with rates between 7.00% and 9.50%. Bridge financing is particularly relevant in today's market, where elevated vacancy in certain submarkets creates opportunities to acquire underperforming properties, upgrade units, and re-lease at higher rents.

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

How Is the Fort Worth Multifamily Market Performing in 2025-2026?

The Fort Worth apartment market, like the broader DFW metroplex, is navigating the final stretch of a historic supply cycle. Understanding these dynamics is critical for both investment analysis and loan underwriting.

The Dallas-Fort Worth metro posted a vacancy rate of 11.7% to 12.0% through late 2025, well above the 10-year average of 8.5%. This elevated vacancy reflects the unprecedented wave of new construction that delivered tens of thousands of units over the past two years. Effective rents across the metro average approximately $1,433 to $1,486 per month, with Fort Worth proper averaging closer to $1,286 to $1,433 depending on the submarket and source.

Rent growth declined 1.4% to 1.8% year-over-year through late 2025, marking the eighth consecutive quarter of negative performance. However, the pace of declines has started to moderate, and several indicators point to a turning point. Absorption of 8,300 units outpaced 7,100 deliveries in Q3 2025, while Q1 2025 saw 7,400 units absorbed, the strongest first-quarter performance since early 2021.

The supply pipeline is contracting rapidly. New deliveries are expected to continue declining for seven consecutive quarters, with the active pipeline dropping to 31,000 units across DFW, the lowest level since 2015. Permitting and groundbreaking activity has also slowed, easing additional supply pressure. Analysts project this contraction will support occupancy recovery through 2026 and return rent growth to positive territory.

Investment activity strengthened in Q4 2025, with $185 million in sales volume, pricing at $184,000 per unit, and a 5.7% average cap rate. Trailing four-quarter sales volume across DFW reached $10.4 billion, up 42% year-over-year, reflecting improving deal flow as the market moves closer to supply-demand equilibrium.

Which Fort Worth Submarkets Offer the Best Multifamily Opportunities?

Fort Worth's diverse neighborhoods each present distinct investment profiles. Lenders evaluate location risk alongside property fundamentals when underwriting your loan, so understanding submarket dynamics is essential for structuring the right financing.

Alliance / North Fort Worth is the city's primary growth engine for multifamily development. Anchored by Hillwood's AllianceTexas development, this corridor benefits from proximity to major employers like Charles Schwab, Deloitte, Fidelity Investments, and Amazon fulfillment centers. North Fort Worth is expected to deliver another 4,500 units in 2025, fueled by affordability and expanding employment hubs. An 829-unit HPI Real Estate development broke ground in late 2025, underscoring continued developer confidence. Cap rates in this submarket range from 5.2% to 5.8% for newer product.

Downtown / Sundance Square represents Fort Worth's urban core, with walkable dining, entertainment, and cultural venues attracting young professionals and empty nesters. Multiple new multifamily developments in the downtown and Medical District areas are adding hundreds of units. Rents in downtown run higher than the city average, and cap rates for stabilized Class A product sit in the 5.0% to 5.5% range.

Stockyards District has transformed from a historic tourist attraction into a vibrant mixed-use neighborhood. The $175 million Mule Alley redevelopment and ongoing investments by Majestic Realty have added boutique hotels, restaurants, and residential lofts. Multifamily investors in the Stockyards area benefit from tourism-driven demand and the neighborhood's unique character, though supply remains limited, keeping yields competitive at 5.3% to 5.8%.

West 7th / Cultural District is Fort Worth's walkable urban neighborhood, home to the Kimbell Art Museum, Modern Art Museum, and a thriving restaurant and bar scene. Luxury apartment communities like The Lofts at West 7th and The Marq on West 7th cater to renters willing to pay a premium for lifestyle amenities. Average rents in this area range from $1,110 to $1,319 for standard units, with luxury product commanding higher premiums. Cap rates run 5.0% to 5.5%.

South Fort Worth / TCU Area benefits from proximity to Texas Christian University and the established neighborhoods of Fairmount and Mistletoe Heights. Student housing and young professional rentals drive demand, and smaller multifamily properties (10 to 40 units) present renovation opportunities suited for bridge loan strategies.

For investors comparing Fort Worth to the broader DFW metroplex, be sure to review our Fort Worth commercial loans overview for additional context on local financing options across property types.

What Types of Multifamily Loans Are Available in Fort Worth?

Fort Worth 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 Fort Worth 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. With the FHFA raising 2026 purchase caps to $88 billion per enterprise, agency capital is flowing freely.

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 consideration.

Bridge Loans are essential for Fort Worth investors looking at the current supply correction 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 Fort Worth-area lenders like Frost Bank, First Financial Bank, and Texas Capital Bank offer flexible terms and faster closing timelines. Local lenders familiar with Fort Worth submarkets may be more comfortable underwriting properties in transitional neighborhoods.

How Do Lenders Underwrite a Fort Worth Multifamily Property?

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

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 Fort Worth's current environment, with metro-wide vacancy above 11%, 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 DFW price per unit at approximately $166,200 to $184,000, a 75% LTV on a 50-unit property at $170,000 per unit would produce a loan of approximately $6.375 million on an $8.5 million acquisition.

Property condition and age significantly impact underwriting. Fort Worth has a diverse apartment stock ranging from 1960s-era garden-style complexes to brand-new Class A communities. Lenders will order a property condition assessment and may require capital reserves for deferred maintenance. Value-add opportunities involving older Class B and C product will need 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 established submarkets with limited new supply, such as the Stockyards, West 7th, and South Fort Worth, receive more favorable terms than those competing directly with new deliveries in North Fort Worth.

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 Securing a Fort Worth Multifamily Loan?

The timeline from initial inquiry to closing varies by loan product, but the general framework is consistent across all programs.

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 the Fort Worth property.

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 Fort Worth 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 Fort Worth multifamily financing needs.

What Should Fort Worth Multifamily Investors Watch in 2026?

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

The supply correction is here. The DFW construction pipeline has dropped to 31,000 units, the lowest since 2015. New deliveries are projected to decline sharply from 2025 levels. For existing property owners and new buyers, less competition from new product means improving occupancy and the return of pricing power.

Population growth keeps accelerating. Fort Worth grew faster than any other major Texas city between 2020 and 2025, adding residents at a 2.4% annual rate. The metro's relatively low housing costs, growing job base, and quality of life continue to attract domestic migration from higher-cost markets on both coasts.

Absorption outpaces new supply. DFW absorbed 8,300 units in Q3 2025 against just 7,100 deliveries, and Q1 2025 absorption was the strongest since early 2021. This demand is structurally supported by corporate relocation, population growth, and the metro's affordability premium.

Investment capital is returning. Trailing four-quarter sales volume hit $10.4 billion across DFW, up 42% year-over-year. Pricing has stabilized at $166,200 to $184,000 per unit, and the improving deal flow reflects growing investor confidence in the market's trajectory.

North Fort Worth leads development. The Alliance corridor, with its concentration of corporate employers and logistics infrastructure, will continue to be the primary growth submarket. Investors should monitor absorption rates here closely, as this area has received the highest concentration of new supply.

Value-add window is open. Cap rates across DFW average 5.7% market-wide. Class A product in core urban locations trades at 4.8% to 5.2%, while suburban value-add deals are available at 5.7% to 6.3% and older workforce housing in secondary locations offers 6.5% to 7.2% yields. With renovation-focused properties showing strong rent growth, value-add strategies remain compelling.

Frequently Asked Questions

What is the minimum loan amount for a Fort Worth multifamily property?

Most commercial multifamily loan programs start at $500,000 to $1,000,000. For smaller properties (5 to 10 units), some Fort Worth-area portfolio lenders offer loans starting at $250,000. HUD/FHA programs typically require a minimum of $2 million. At Fort Worth's average pricing of roughly $170,000 per unit, 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 Fort Worth's elevated vacancy rate affect my loan approval?

With the DFW metro vacancy rate around 11.7% to 12.0%, 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 Fort Worth right now?

Yes. 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. Fort Worth's current market, with Class B and C properties available at favorable cap rates and tenants demonstrating willingness to pay higher rents for upgraded units, makes a strong case for renovation strategies in established submarkets like the Stockyards, West 7th, and South Fort Worth.

What DSCR is required for a Fort Worth 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.

How does Fort Worth compare to Dallas for multifamily investment?

Fort Worth generally offers slightly higher cap rates and lower price-per-unit basis than Dallas proper, making it attractive for yield-focused investors. Fort Worth's population growth rate (11.1% from 2020 to 2025) has outpaced Dallas and Austin, and the city's employment base across defense, aviation, logistics, and corporate services provides stability. Dallas offers more institutional-grade product and higher absolute rents, while Fort Worth provides better entry points and stronger yield spreads. Many investors hold properties across both cities to diversify within the DFW metroplex.

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

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.