Columbus multifamily lending

Short answer: Columbus is Ohio's strongest small-multifamily metro, backed by Intel, OSU, and state-government employment and the state's best rent growth at +2.6% YoY. Stabilized 5–20 unit cap rates run 6.5–7.75%, and most deals clear the 1.25 DSCR floor with room, so LTV usually gates the loan.

Columbus is the strongest Ohio metro

Of the three big Ohio metros, Columbus has the best demographic story — Intel build-out, OSU, state-government employment — and the strongest rent growth (+2.6% YoY). Cap rates have compressed but still sit at a comfortable 6.5–7.75% for stabilized 5–20 unit product.

Does Columbus clear the DSCR floor?

At a 7.0 cap, an 8-unit Columbus deal underwrites to roughly 1.32 DSCR at 75% LTV. Comfortable. Inside a 6.5 cap, you're closer to the floor and LTV-bound.

Submarket guide

• German Village / Schumacher Place — 6.0–6.5%, premium.
• Clintonville / Linden border — 6.75–7.25%, value-add.
• Hilltop / Franklinton — 7.25–8.0%, classic cash flow.
• Whitehall / Reynoldsburg — 7.0–7.5%, family workforce housing.

Local notes

Property tax in Franklin County is reassessed on a tri-annual cycle — not on sale. This makes Columbus year-2 underwriting cleaner than TX/FL/GA. Insurance is up modestly (~9% YoY).

PathIQ's Ohio comp pull defaults to Franklin County; expand the radius for ring-suburb deals.

Frequently asked questions

What cap rate should I expect on Columbus small multifamily?

Stabilized 5–20 unit product in Columbus trades at 6.5–7.75%. Caps have compressed thanks to the Intel build-out and OSU-driven demand, with premium neighborhoods like German Village pricing tighter and Hilltop/Franklinton offering the deepest cash flow.

Is DSCR a problem on Columbus deals?

Usually not. At a 7.0 cap an 8-unit underwrites to roughly 1.32 DSCR at 75% LTV, comfortably above the 1.25 floor. Inside a 6.5 cap you move closer to the floor and the loan becomes LTV-bound.

How does Franklin County property tax affect Columbus underwriting?

Franklin County reassesses on a tri-annual cycle rather than on sale, so a purchase doesn't immediately reset your tax basis. That makes year-2 underwriting cleaner and more predictable than in TX, FL, or GA reassessment-on-sale markets.

Why is Columbus considered the strongest Ohio metro?

Columbus has the best demographic story of the big Ohio metros — Intel, Ohio State, and state-government employment — and the strongest rent growth at +2.6% YoY. That combination supports both durable occupancy and the metro's compressed cap rates.