Atlanta multifamily lending

Short answer: Stabilized 5–20 unit multifamily in metro Atlanta trades at roughly 5.75%–7.0% cap rates, with the widest submarket spread of any metro on this list depending on which side of I-285 you're on. Rent growth has stabilized at +2.1% YoY, and DSCR lenders here typically want around 1.25.

What Atlanta looks like right now

Atlanta has the most second-tier-submarket variance of any metro on this list. Cap rates run 5.75–7.0% depending on which side of I-285 you're on, and rent growth has stabilized at +2.1% YoY after a flat 2024.

DSCR & financing notes

DSCR-loan rates in Atlanta are typical of the southeast: 7.3–7.6%. At a 6.5 cap, a stable 8-unit underwrites to ~1.30 DSCR at 75% LTV — comfortable. At a 6.0 cap or tighter, you're back at the floor.

Submarket cap-rate guide

• OTP (outside the perimeter) — 6.25–7.0%
• ITP class C — 5.75–6.25%
• Decatur / East Lake corridor — 5.50–6.25%
• Marietta / Cobb 1980s vintage — 6.50–7.0%

What should you watch when underwriting Atlanta?

• Georgia reassesses on sale; budget for a year-2 tax bump.
• Stormwater fees vary widely by county.
• Insurance up ~12% YoY but lower than FL / SC.

Underwrite an Atlanta deal in PathIQ and the DSCR card will tell you whether you're DSCR- or LTV-bound at today's rates.

Frequently asked questions

What are cap rates in metro Atlanta right now?

Stabilized 5–20 unit product runs about 5.75%–7.0%, with the widest submarket spread of any metro on this list. Outside the perimeter trades wider (6.25–7.0%) while intown corridors like Decatur and East Lake compress toward 5.5–6.25%.

Am I DSCR-bound or LTV-bound on an Atlanta deal?

At a 6.5 cap, a stable 8-unit underwrites to about 1.30 DSCR at 75% LTV — comfortably above the ~1.25 floor and LTV-bound. At a 6.0 cap or tighter you fall back to the DSCR floor, so cash flow sets the loan size.

How does Georgia property tax affect year-2 underwriting?

Georgia reassesses on sale, so budget for a year-2 tax bump above the seller's trailing number. Model the higher tax line in year 2 rather than trusting the current bill.

What's insurance doing on Atlanta multifamily?

Premiums are up roughly 12% YoY — meaningful, but lower than Florida or coastal South Carolina. Stormwater fees also vary widely by county, so confirm both with current quotes before finalizing the DSCR.