As housing costs skyrocket, more Americans are turning to “rent now, pay later” services as a way to manage rising monthly rent bills without falling behind. What was once a niche financial workaround is quickly becoming a mainstream option for renters squeezed by higher prices and unpredictable income.
Breaking Rent Into Pieces
Rent now, pay later services work by fronting the full rent payment to landlords on the due date. Tenants then repay that amount in smaller installments spread across the month. The idea is simple: instead of one massive hit to your bank account, rent gets divided into more manageable chunks.
Recently, Affirm began piloting its own rent-focused installment option. The company says the test program charges renters no interest or late fees, positioning itself as a less punitive alternative to traditional credit products.
The appeal is strongest for people with uneven cash flow—gig workers, freelancers, and lower-income households whose paychecks don’t always arrive neatly before rent is due.
Rents Keep Rising Nationwide
The timing isn’t accidental. Rent prices continue to climb across the U.S., putting pressure on millions of households. According to U.S. Bureau of Labor Statistics, rents rose 3% in December 2025 compared to the same month a year earlier. Data from Apartments.com shows the average U.S. rent now sits at $1,650 per month, up 0.4% year over year.
For renters already living close to the edge, even modest increases can make the difference between staying afloat and falling behind.
Flex and the Growth of Rent Installments
One of the biggest players in this space is Flex. Founded in 2019, Flex now serves around 1.5 million users, processing roughly $2 billion in rent payments each month. The company says its typical customer is a lower-income renter with a median credit score of 604, using the service three or four times a year to smooth out cash flow.
How One Renter Made It Work
Kellen Johnson, 44, shared his experience with ABC News, explaining how he used Flex to manage rent while working as an independent contractor. Instead of paying his full $1,850 rent on the first of the month, Johnson paid $1,350 upfront and covered the remaining $500 mid-month.
For the service, Flex charged him a $14.99 monthly subscription plus 1% of his rent—adding up to about $33 per month. Despite the fees, Johnson said the flexibility was worth it, given his unstable income at the time.
Other Companies, Different Fee Models
Not all rent installment services operate the same way. A competitor called Livble skips monthly subscriptions altogether, charging renters a flat fee—typically between $30 and $40—each time they use the service.
Why Experts Are Cautious
Despite their growing popularity, rent now, pay later options come with clear warnings. Some financial experts argue that these services don’t actually make housing more affordable—they simply delay the pain.
Chris Jackson, a certified financial planner, told CNBC that relying on borrowed money to cover rent on a regular basis can be risky, especially for renters already struggling to keep up.
Similarly, Matt Schulz, chief consumer finance analyst at LendingTree, warned Fox Business that overlapping rent payments could quickly spiral out of control. Renters may still be repaying last month’s installment plan when the next month’s rent comes due.
“That’s where things can get messy,” Schulz noted. Managing multiple short-term payment plans at once increases the risk of missed payments and mounting stress.
A Short-Term Fix, Not a Long-Term Solution
Rent now, pay later services can offer temporary breathing room—but they don’t solve the deeper issue of rising housing costs. For renters with volatile income, these tools may help bridge gaps. Used too often, however, they risk turning rent into an ongoing cycle of debt rather than a fixed monthly expense.
As housing prices continue to rise, the popularity of these services is unlikely to fade. The real question is whether they remain a safety net—or become another financial trap for those already stretched thin.
