Rent Now, Pay Later Services Gain Popularity Among Renters

But high fees raise concerns about deepening financial strain

Published on Feb. 5, 2026

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As housing costs continue to rise, a growing number of renters are turning to 'rent now, pay later' services that allow them to split rent payments into multiple installments. While these services promise relief by improving cash flow, consumer advocates warn that the associated fees can translate into triple-digit effective interest rates, potentially exacerbating financial pressures for already cost-burdened renters.

Why it matters

Rent affordability is a major issue, with the Census Bureau estimating that a large share of renter households pay 30% or more of their monthly income on rent, leaving them 'cost burdened'. The rise of rent now, pay later services raises concerns that they could enable further rent increases as landlords factor in renters' weekly cash flow rather than local market conditions.

The details

Companies like Flex, Livble, and Affirm offer rent now, pay later services that allow renters to split their monthly rent into multiple payments, typically for a fee. For example, Flex charged a $14.99 monthly subscription fee plus 1% of the total rent, resulting in over $33 in monthly charges for one renter. These fees can translate into effective annual percentage rates as high as 172%. Consumer advocates warn that these services function like short-term loans that add to already strained budgets.

  • Rent now, pay later services have emerged over the past few years as housing costs have climbed nearly 28% in the past five years.
  • Flex, one of the largest rent now, pay later companies, says its 1.5 million customers now send about $2 billion a month in rent through its system.

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 company that charges renters fees ranging from $30 to $40, which can translate into 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 is not currently charging renters interest or fees.

Kellen Johnson

A 44-year-old renter who used Flex to split his $1,850 monthly rent, paying $1,350 on the first of the month and $500 on the 15th, for a total monthly charge of over $33.

Mike Pierce

The executive director of Protect Borrowers, who previously worked at the Consumer Financial Protection Bureau and warns that renters should 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 (The Associated Press)

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

— Kellen Johnson (The Associated Press)

What’s next

Economists and renters' advocates argue that none of these financing options address the fundamental issue of affordability in the rental market, and warn that if credit cards or flexible rent payment options become more widely used, rents could rise further as landlords start factoring in a potential renter's weekly cash flow rather than local market conditions.

The takeaway

The rise of rent now, pay later services highlights the financial strain faced by many renters, but the high fees associated with these products raise concerns that they may be exacerbating the problem rather than providing meaningful relief. Policymakers and consumer advocates will likely continue to scrutinize these services and their impact on rental affordability.