Standard Markets for the Freddie Mac SBL Loan Program
In the context of the Freddie Mac Optigo Small Balance Loan program, cities across the U.S. are divided into Top Markets, Standard Markets, Small Markets, and Very Small Markets. Top Markets are the largest and most desirable, and hence the least risky for lenders and Freddie Mac. Small and Very Small Markets are the riskiest, and therefore loans for these properties require higher Debt Service Coverage Ratios.
Properties in Standard Markets must have a DSCR of 1.25x, and include Orlando, San Antonio, Houston, Phoenix, Atlanta, Las Vegas, Philadelphia, Cleveland, Jacksonville, Albany, Austin, Albuquerque, Pittsburgh, Baltimore, New Orleans, Bakersfield, Buffalo, Salt Lake City, Providence, St. Louis, Charlotte, Tampa, Nashville, Indianapolis, Detroit, Cincinnati, Norfolk, Milwaukee, Richmond, Birmingham, Dayton, Hartford, Riverside, Tucson, Raleigh, Rochester, Columbus, Memphis, Omaha, Richmond, Tulsa, Knoxville, Fresno, Louisville, Kansas City, Honolulu, and Oklahoma City.