Rent Now, Pay Later Services Gain Popularity Among Renters

But high fees raise concerns about affordability and debt traps

Published on Feb. 5, 2026

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A growing number of renters are turning to 'rent now, pay later' services to manage their monthly payments, as housing costs continue to climb. These services allow renters to split their rent into multiple installments, but often come with fees that can translate to triple-digit effective interest rates. While the services aim to provide financial flexibility, consumer advocates warn they may be deepening financial strain 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 highlights the financial pressures many renters face, but also raises concerns that these products could further drive up rents or trap users in debt.

The details

Companies like Flex, Livble, and Affirm offer 'rent now, pay later' services that allow renters to split their monthly payments, typically for a fee. For example, Kellen Johnson used Flex to pay $1,350 on the 1st and $500 on the 15th, with Flex charging a $14.99 monthly subscription and 1% of the total rent. This translated to an effective annual percentage rate of 172% when expressed using standard consumer lending calculations. Consumer advocates warn these fees should be considered a 'cost of credit' and that renters should be skeptical of any 'no fees or no interest' claims.

  • Rent now, pay later services have emerged over the past few years as housing costs have climbed nearly 28% in the past five years.

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 now, pay later company that charges renters fees ranging from $30 to $40, which can translate to effective annual percentage rates of roughly 104% to 139%.

Affirm

A buy now, pay later company that is piloting a program allowing some customers to split rent into two payments, in partnership with Esusu.

Kellen Johnson

A 44-year-old renter who used Flex to split up his $1,850 rent, paying $1,350 on the 1st and $500 on the 15th, with Flex charging a $14.99 monthly subscription and 1% of the total rent.

Mike Pierce

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

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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 (wklh.com)

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

— Kellen Johnson (wklh.com)

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.

The takeaway

The rise of rent now, pay later services highlights the financial pressures many renters face, but also raises concerns that these products could further drive up rents or trap users in debt, deepening the affordability crisis in the rental market.