Rent Now, Pay Later Services Grow as Housing Costs Climb

Flexible payment options come with fees that raise concerns about deepening financial pressure on renters

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 subscription fees and other charges that can translate into triple-digit effective interest rates. While the services aim to help renters manage cash flow, consumer advocates warn they may be exacerbating financial strain rather than relieving it.

Why it matters

Rent affordability is a major issue, with the Census Bureau estimating that over 42 million U.S. households are 'cost burdened,' meaning they pay 30% or more of their monthly income on rent. As housing costs continue to climb, these flexible payment options are becoming more popular, but their fees and effective interest rates raise concerns that they may be deepening financial pressure on renters rather than providing true relief.

The details

Companies like Flex, Livble, and Affirm allow renters to split their monthly rent into multiple payments, with Flex charging a $14.99 monthly subscription fee plus 1% of the total rent. In one example, a renter paying $1,850 rent ended up paying over $33 per month in fees to Flex, translating to an effective annual percentage rate of 172%. Other services like Livble charge $30-$40 fees that can result in effective APRs of 104%-139%. While the services aim to help renters manage cash flow, consumer advocates warn they function like short-term loans that add to already strained budgets.

  • Rent prices have jumped nearly 28% in the past five years, according to the Bureau of Labor Statistics.

The players

Flex

One of the largest companies focused on splitting rent payments, with 1.5 million customers sending about $2 billion a month in rent through its system.

Livble

A rent payment service that does not charge a subscription but instead charges renters fees ranging from $30 to $40 per transaction.

Affirm

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

Kellen Johnson

A 44-year-old renter who used Flex to split up his $1,850 monthly rent, paying $1,350 on the first and $500 on the 15th, while incurring over $33 per month in 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 financing providers that have partnered 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 (wbal.com)

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

— Kellen Johnson (wbal.com)

What’s next

As more renters turn to flexible payment options, economists and renters' advocates argue that these services do not address the fundamental issue of rental affordability. They warn that if these options become more widely used, landlords may start factoring in a potential renter's weekly cash flow when setting rents, potentially leading to further rent increases.

The takeaway

While rent now, pay later services aim to help renters manage cash flow, the fees and effective interest rates associated with these products raise concerns that they may be deepening financial pressure on renters rather than providing true relief. As housing costs continue to climb, addressing the root issue of rental affordability remains crucial.