Long Beach stands as one of Southern California's most compelling multifamily investment markets. With average apartment rents of approximately $2,650 per month, vacancy rates hovering around 3.9% to 5.3%, and a diversified economy powered by the nation's second busiest port, a surging aerospace sector, and California State University Long Beach (CSULB), the city offers strong fundamentals for apartment investors at every experience level. Whether you are acquiring a stabilized building in Belmont Shore or repositioning a value-add property on the Westside, understanding Long Beach's multifamily lending landscape is critical to maximizing your returns.
This guide covers everything you need to know about financing multifamily properties in Long Beach, from loan programs and interest rates to neighborhood-level investment analysis and underwriting considerations unique to the Southern California market.
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Why Is Long Beach One of the Strongest Multifamily Markets in Southern California?
Long Beach's multifamily market benefits from structural demand drivers that set it apart from many other cities in the Los Angeles metro area. The city's population of approximately 466,000 makes it the seventh largest in California, and its coastal location between Los Angeles and Orange County positions it as a natural draw for renters seeking relative affordability without sacrificing quality of life.
The Port of Long Beach, which processed a record 9.9 million TEUs in 2025, employs thousands of workers directly and supports tens of thousands more in related logistics, warehousing, and transportation industries. These port-sector workers form a large and stable base of rental demand, particularly in neighborhoods on the Westside and near the I-710 corridor.
The aerospace and defense sector adds another layer of high-wage demand. Long Beach has branded itself "Space Beach," home to Anduril Industries (building a 1.1 million square foot campus at Douglas Park expected to support roughly 5,500 jobs), Relativity Space, SpinLaunch, Wisk, and the Nikon Advanced Manufacturing Technology Center. These companies attract engineers, scientists, and technology professionals who often choose to rent in Long Beach's attractive coastal neighborhoods.
CSULB enrolls more than 39,000 students and graduates approximately 1,200 engineers annually, creating both direct student housing demand and a pipeline of young professionals entering the rental market. The university's $12.2 million in federal workforce development grants further strengthen the connection between education and local employment.
The numbers tell a compelling story. Long Beach apartment rents of around $2,650 per month represent a meaningful discount to neighboring markets like Santa Monica ($3,800+), West LA ($3,500+), and even downtown Los Angeles ($2,900+). This affordability gap continues to attract renters priced out of more expensive areas, sustaining low vacancy and consistent rent growth across the city.
What Types of Multifamily Loans Are Available in Long Beach?
Long Beach borrowers have access to the full spectrum of multifamily financing programs, each tailored to different property profiles, investment strategies, and borrower qualifications.
Agency loans through Fannie Mae and Freddie Mac represent the gold standard for stabilized multifamily financing. These programs offer the most competitive rates in the market, starting around 5.30% for seven to ten year fixed terms as of early 2026. Agency loans allow up to 80% loan-to-value ratios with 25 to 30 year amortization schedules and are available for properties with five or more units that demonstrate stable occupancy above 90%. For well-located Long Beach apartment buildings with strong rent rolls, agency financing provides the lowest cost of capital available.
Conventional commercial mortgages from banks and life insurance companies serve borrowers seeking more flexibility than agency programs provide. Rates range from 5.18% to 7.25% depending on term length, leverage, and property quality. These loans work well for larger portfolio transactions and deals that may not meet strict agency underwriting requirements. Visit our permanent loan programs page for more details.
DSCR loans evaluate the property's income rather than the borrower's personal income, making them particularly attractive for investors with multiple properties, self-employment income, or complex tax returns. Long Beach DSCR loans typically require a minimum debt service coverage ratio of 1.25x and down payments of 20% to 35%. Rates currently range from 6.25% to 8.50%. Use our DSCR calculator to determine whether your target property meets minimum coverage requirements.
Bridge loans provide short-term financing for value-add acquisitions, lease-up scenarios, and properties that need repositioning before qualifying for permanent financing. In Long Beach's competitive market, bridge financing allows investors to move quickly on off-market deals and properties with below-market occupancy. Rates range from 7.50% to 10.50% with terms of 12 to 36 months. Try our commercial bridge loan calculator to model your bridge-to-permanent strategy.
SBA loans serve owner-occupants who live in one unit of a small multifamily property or operate a business from a mixed-use building. The SBA 504 program offers up to 90% financing with below-market fixed rates, while the SBA 7(a) program provides flexible terms for qualifying borrowers.
Which Long Beach Neighborhoods Offer the Best Multifamily Investment Opportunities?
Long Beach's diverse neighborhoods create a wide range of multifamily investment profiles. Each submarket carries distinct risk-return characteristics shaped by proximity to transit, employment centers, the waterfront, and the overall trajectory of neighborhood development.
Belmont Shore and Naples represent Long Beach's most established luxury rental markets. Average rents exceed $3,000 per month, and properties trade at premium prices due to the coastal setting, walkable 2nd Street retail district, and affluent demographics with average household incomes above $158,000. Cap rates compress to around 4.5% to 5.0%, reflecting perceived stability and strong appreciation potential. Financing is straightforward for stabilized assets, with agency and conventional lenders competing for well-located deals.
Bixby Knolls is an increasingly desirable neighborhood along Atlantic Avenue, known for tree-lined streets, a growing restaurant scene, and a strong community identity. Average rents of approximately $2,400 to $2,700 per month and cap rates of 5.0% to 5.5% make Bixby Knolls a solid core-plus investment market. The neighborhood attracts young families and professionals who value its residential character and proximity to the 405 freeway.
Downtown Long Beach is experiencing a transformation driven by major mixed-use developments including the $150 million Portico project and the $200 million Alexan West End. Average rents downtown have been climbing steadily, and the city's Shoreline Vision Plan promises further investment in the waterfront corridor. Cap rates of 5.0% to 5.5% reflect both the growth potential and the construction-related supply risk. Transit access via the Blue Line metro provides a competitive advantage for rental demand.
East Long Beach and Lakewood Village offer stable, family-oriented rental markets with moderate entry points. Average rents of approximately $2,300 to $2,600 per month and cap rates of 5.5% to 6.0% provide attractive current yields. Proximity to CSULB generates consistent demand from university-affiliated renters.
Westside and Wrigley present the highest-yield multifamily investment opportunities in Long Beach, with cap rates of 6.0% to 7.0% and average rents of approximately $1,900 to $2,300 per month. These neighborhoods offer the best entry points for value-add investors willing to renovate units and implement professional property management. Proximity to the port and industrial employers provides a stable working-class tenant base.
Cambodia Town and Central Long Beach are emerging investment areas with significant value-add potential. Rents of roughly $1,800 to $2,200 per month and cap rates above 6.0% create opportunities for investors focused on unit renovations and rent optimization. The neighborhoods' cultural identity and growing commercial corridors support long-term appreciation.
For a comprehensive overview of the Long Beach commercial lending landscape, visit our Long Beach commercial loans hub.
What Interest Rates Should Long Beach Multifamily Investors Expect in 2026?
Multifamily interest rates in Long Beach are influenced primarily by national capital markets, but local market strength can result in slightly more competitive spreads for well-located properties with strong fundamentals.
As of early 2026, agency multifamily rates for seven to ten year fixed terms have settled at approximately 5.30%, reflecting stabilizing Treasury yields and improved capital market liquidity. For a stabilized 30-unit building in Belmont Shore or Bixby Knolls, an agency loan at 5.30% to 5.50% with 75% to 80% LTV represents the most efficient financing available.
Conventional commercial mortgages for Long Beach multifamily properties range from 5.18% to 7.25%, with the best rates reserved for low-leverage loans on prime coastal assets. Life insurance company lenders are active in Long Beach's multifamily sector, offering competitive rates for loans above $3 million on stabilized properties.
Bridge loan rates for value-add multifamily acquisitions typically fall between 7.50% and 10.50%, reflecting the transitional nature of these investments. Experienced operators with a track record of successful Long Beach renovations can often negotiate rates at the lower end of this range.
DSCR loan rates range from 6.25% to 8.50%, with pricing heavily influenced by the property's debt service coverage ratio, loan-to-value ratio, and the borrower's credit profile. Properties with DSCR ratios above 1.50x and LTV below 65% consistently receive the most favorable terms.
Use our commercial mortgage calculator to estimate monthly payments and total borrowing costs for your Long Beach multifamily acquisition.
How Do You Underwrite a Multifamily Deal in Long Beach?
Underwriting a multifamily property in Long Beach requires careful attention to several market-specific factors that directly impact both property valuation and loan qualification.
Rent comparables are the foundation of any multifamily underwriting analysis. Long Beach's neighborhood-by-neighborhood rent variation is significant, with average rents ranging from approximately $1,800 per month in Cambodia Town to over $3,000 in Belmont Shore. Lenders will compare your property's in-place rents to comparable units within a tight geographic radius, typically one-half mile to one mile, to assess whether current rents are at market, below market, or above market.
Operating expenses in Long Beach run above the national average due to California-specific factors. Property taxes under Proposition 13 are calculated based on purchase price plus a maximum 2% annual increase, which means recently acquired properties will have higher tax burdens than long-held assets. Insurance costs have increased sharply since 2023, particularly for properties near the coast. Utility costs and California's minimum wage requirements for property management staff also add to the expense profile.
Long Beach's housing stock varies significantly by neighborhood. Many multifamily properties in older neighborhoods like the Westside, Wrigley, and Cambodia Town were built in the mid-20th century and may require capital expenditure budgets of $15,000 to $35,000 per unit for full renovations, including updated kitchens, bathrooms, windows, and common areas. Lenders underwriting value-add deals will scrutinize your renovation budget and timeline carefully.
The debt service coverage ratio is the single most important metric for loan qualification. Most Long Beach lenders require a minimum DSCR of 1.20x to 1.25x, meaning the property's net operating income must exceed annual debt service by at least 20% to 25%. California's Proposition 13 creates an important dynamic: recently purchased properties face reset tax assessments that can significantly increase operating expenses compared to the previous owner's basis, reducing NOI and potentially impacting DSCR calculations.
What Are the Biggest Risks of Multifamily Investing in Long Beach?
Long Beach's multifamily market offers strong fundamentals, but investors must account for several risk factors that are either unique to or amplified in this market.
Supply risk has emerged as a near-term concern. Major projects like the 272-unit Portico and the Alexan West End are adding new luxury units to the downtown submarket. While the broader Long Beach market has limited new construction pipeline due to high development costs and lengthy permitting, concentrated delivery in the downtown corridor could create temporary vacancy pressure and concession activity in that specific submarket.
Regulatory risk deserves careful attention. California's AB 1482 (Tenant Protection Act) caps annual rent increases at 5% plus CPI or 10%, whichever is lower, for most multifamily properties built more than 15 years ago. Long Beach has explored additional tenant protection measures, and the city's Just Cause Eviction ordinance adds another layer of regulation. Investors should factor these constraints into their rent growth projections and hold period analysis.
Seismic risk is a consideration for all Southern California multifamily properties. Long Beach has a history of significant seismic activity, including the devastating 1933 Long Beach earthquake. Soft-story buildings, which are common in the city's older multifamily stock, may require mandatory retrofitting. Lenders typically require seismic risk reports as part of their due diligence process.
Environmental risk applies to properties near the port, former oil industry sites, and other industrial areas. Phase I and Phase II environmental site assessments may be required, and any contamination findings can affect property valuation and loan terms.
How Does Long Beach's Multifamily Market Compare to Other Southern California Markets?
Long Beach occupies a distinctive position among Southern California multifamily markets. Understanding how the city stacks up against peer markets helps investors calibrate their expectations for returns, risk, and growth potential.
Long Beach's average rent of approximately $2,650 per month represents a significant discount to coastal Westside markets while offering comparable lifestyle amenities including beach access, walkable neighborhoods, and a vibrant food and cultural scene. This affordability advantage creates a natural migration pattern of renters moving from more expensive markets into Long Beach, sustaining demand even during periods of broader economic softness.
Cap rates in Long Beach's core coastal neighborhoods of 4.5% to 5.5% are slightly higher than comparable Santa Monica or Manhattan Beach locations, reflecting both the opportunity for higher yields and the somewhat different tenant demographic. Value-add opportunities in neighborhoods like the Westside, Wrigley, and Cambodia Town offer cap rates of 6.0% to 7.0%, providing meaningful yield premiums over core investments.
Long Beach's vacancy rate of approximately 3.9% to 5.3% is tighter than the broader Los Angeles County average of around 5.5%, reflecting strong local demand drivers. The combination of port employment, aerospace growth, university demand, and the city's relative affordability creates a multifamily demand profile that is both diverse and resilient.
What Is the Outlook for Long Beach Multifamily Investment in 2026 and Beyond?
The outlook for Long Beach's multifamily market in 2026 is positive, with several trends working in favor of apartment investors.
Demand drivers are strengthening. Anduril's $1 billion Douglas Park campus is expected to add roughly 5,500 high-wage jobs over the coming years. The broader aerospace cluster continues to expand, and CSULB's Space Beach Initiative aims to produce approximately 15,000 certified engineering professionals over the next decade. These growth engines will generate sustained rental demand, particularly in neighborhoods near Douglas Park, the airport, and the university.
The downtown waterfront transformation is attracting new investment. The Portico development, Alexan West End, the 12,000-seat Long Beach Bowl amphitheater near the Queen Mary, and the Downtown Shoreline Vision Plan are all catalysts for increased residential demand and neighborhood desirability. Investors who position early in the downtown submarket may benefit from significant appreciation as these projects deliver.
Long Beach's relative affordability compared to Westside LA markets creates a durable demand cushion. As rents in Santa Monica, Venice, and West LA continue to climb, more renters will consider Long Beach as a high-quality alternative, sustaining occupancy and supporting gradual rent growth.
Capital markets are improving. Agency multifamily rates have moderated, and transaction volume is picking up across Southern California. Properties that traded at peak pricing in 2021 and 2022 have seen values adjust, creating acquisition opportunities for buyers entering the market today.
Frequently Asked Questions About Multifamily Loans in Long Beach
What is the minimum down payment for a multifamily loan in Long Beach?
The minimum down payment depends on the loan program and property type. Agency loans through Fannie Mae and Freddie Mac require as little as 20% down for stabilized properties with five or more units. DSCR loans typically require 20% to 35% depending on the coverage ratio and property location. SBA loans for owner-occupied mixed-use properties allow down payments as low as 10%. Conventional commercial mortgages generally require 25% to 35%. Long Beach's per-unit prices, while lower than Westside LA, still mean a 20% down payment on a mid-size apartment building can represent $500,000 to $1.5 million or more.
How long does it take to close a multifamily loan in Long Beach?
Closing timelines vary by loan type. Agency loans typically close in 45 to 60 days from application. Conventional commercial mortgages follow a similar timeline. Bridge loans can close in as little as 14 to 21 days, which is valuable in Long Beach's competitive market where multiple offers are common on well-priced multifamily properties. SBA loans take longer, typically 60 to 90 days, due to additional government underwriting requirements. Having a complete application package with rent rolls, operating statements, and borrower financials prepared in advance can accelerate the process significantly.
What DSCR ratio do Long Beach lenders require for multifamily properties?
Most Long Beach multifamily lenders require a minimum debt service coverage ratio of 1.20x to 1.25x. This means the property's annual net operating income must exceed annual debt service by at least 20% to 25%. Some lenders require higher ratios of 1.30x to 1.35x for higher-leverage loans or properties in transitional neighborhoods. Properties with DSCR ratios above 1.50x are considered strong performers and typically receive the most competitive rates and terms. Use our DSCR calculator to evaluate your property before applying.
How does California's Proposition 13 affect multifamily investment in Long Beach?
Proposition 13 limits property tax increases to 2% per year on the assessed value, but the assessment resets to market value upon sale. This means that recently acquired properties may face significantly higher property tax burdens than the previous owner paid. For example, a building that last sold in 2005 for $1.5 million might be assessed at around $2 million currently, while the new buyer paying $4 million will be assessed at the full purchase price. This tax step-up directly reduces NOI and must be accurately modeled in your underwriting. Many lenders account for the post-acquisition tax basis when evaluating DSCR.
Can I finance a small multifamily property (2-4 units) in Long Beach?
Yes, but the financing options differ from larger commercial multifamily deals. Properties with two to four units are classified as residential rather than commercial and are typically financed through residential mortgage programs, FHA loans, or portfolio loans from local banks. For properties with five or more units, the full range of commercial multifamily loan programs becomes available, including agency, conventional, DSCR, and bridge financing. Many Long Beach investors start with duplexes or fourplexes and scale up to larger commercial deals as they build experience and capital.
Are there rent control restrictions on Long Beach multifamily properties?
California's AB 1482 (Tenant Protection Act) caps annual rent increases at 5% plus the local Consumer Price Index or 10%, whichever is lower, for most multifamily properties built before 2005. Properties built within the last 15 years, single-family homes, and certain other property types are exempt. Long Beach also has a Just Cause Eviction ordinance that limits the circumstances under which landlords can terminate tenancies. These regulations affect how aggressively investors can push rents during a value-add strategy, so factor them into your projected returns and hold period analysis.
Contact Clear House Lending today for a free consultation on multifamily financing in Long Beach. Our team specializes in apartment loans across Southern California and can help you identify the optimal loan program for your investment strategy.