Rent Now, Pay Later Services Gain Popularity Among Renters

But fees and interest rates raise concerns about affordability and financial strain

Published on Feb. 4, 2026

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A growing number of renters are turning to 'rent now, pay later' services that allow them to split rent payments into multiple installments, but these services often come with fees and high effective interest rates that can further strain already tight budgets. While the services aim to help renters manage cash flow, consumer advocates warn they function like short-term loans that can deepen financial pressure.

Why it matters

Rent affordability is a major issue, with over 40 million U.S. households considered 'cost burdened' by rent. These new financial services raise concerns that they could enable landlords to raise rents even further if renters' weekly cash flow becomes the focus rather than local market rates.

The details

Companies like Flex, Livble, and Affirm offer 'rent now, pay later' services that let renters split their monthly payment, but typically charge subscription fees, transaction fees, and effective interest rates as high as 172%. While the services aim to help renters manage cash flow, especially for lower-income and gig workers, consumer advocates warn they function like short-term loans that add to financial strain.

  • Rent prices have jumped nearly 28% in the past five years, according to the Bureau of Labor Statistics.
  • Flex, one of the largest 'rent now, pay later' companies, was launched in 2019.

The players

Flex

A leading 'rent now, pay later' company that has 1.5 million customers and processes about $2 billion in monthly rent payments.

Livble

A 'rent now, pay later' service that charges renters fees ranging from $30 to $40, translating to effective annual percentage rates of 104% to 139%.

Affirm

A buy now, pay later company that is piloting a program to allow some customers to split rent into two payments, though it says it is not charging interest or fees to renters.

Kellen Johnson

A 44-year-old renter who used Flex to split his $1,850 monthly rent, paying $1,350 on the 1st and $500 on the 15th, while incurring over $33 in monthly fees.

Mike Pierce

The executive director of Protect Borrowers, who previously worked at the Consumer Financial Protection Bureau and warns renters to be skeptical of any 'rent now, pay later' services that partner with landlords.

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What they’re saying

“Renters should be skeptical of any financing providers that have partnered with a landlord and be skeptical of anything that sells itself as no fees or no interest.”

— Mike Pierce, Executive Director, Protect Borrowers (localsyr.com)

“It was an expense that I was incurring, but I went ahead as it was more convenient.”

— Kellen Johnson (localsyr.com)

What’s next

Economists and renters' advocates argue that these 'rent now, pay later' services do not address the fundamental issue of rent affordability, and warn that if they become more widely used, landlords could start factoring in renters' weekly cash flow when setting rents rather than local market rates.

The takeaway

While 'rent now, pay later' services aim to help renters manage cash flow, the fees and high effective interest rates associated with these products raise concerns that they could further strain already tight budgets and potentially enable landlords to push rents even higher if these financing options become more prevalent.