11:41 pm - February 4, 2026
A growing number of renters across the United States are turning to rent now pay later services to manage monthly housing costs, but consumer advocates warn these financial products often function as high-cost loans that may worsen financial strain. These services allow renters to split their monthly rent into multiple payments throughout the month, with companies like Flex, Livble, and recently Affirm offering such options as housing costs continue climbing nationwide.
According to the Bureau of Labor Statistics, rents have surged nearly 28 percent over the past five years. The products have emerged alongside rising housing costs and increasingly unpredictable paychecks, particularly affecting lower-income workers and those in the gig economy. Approximately 109 million Americans, representing about 42.5 million households, are renters in the United States.
How Rent Now Pay Later Services Operate
These services typically work by having the company pay landlords the full rent amount when due, while renters repay the company in two or more installments throughout the month. Companies argue this approach helps renters manage cash flow by spreading large payments across multiple pay periods. However, the convenience comes at a significant cost that raises concerns among financial experts.
Kellen Johnson, a 44-year-old Sacramento resident, used Flex for approximately two years to split his $1,850 monthly rent payment. Johnson paid $1,350 on the first of the month and $500 on the 15th, but Flex charged a $14.99 monthly subscription fee plus 1 percent of total rent, totaling more than $33 monthly. For his two-week loan of $500, this translated to an effective annual percentage rate of 172 percent when calculated using standard consumer-lending methods.
Hidden Costs and High Interest Rates
Consumer advocates emphasize that the fees associated with rent payment splitting should be understood as the cost of credit. Mike Pierce, executive director of Protect Borrowers and former Consumer Financial Protection Bureau employee, advised renters to remain skeptical of financing providers partnering with landlords. Additionally, he warned against services marketing themselves as having no fees or interest when charges exist in other forms.
Flex, launched in 2019, reports that 1.5 million customers now send approximately $2 billion monthly through its system. The company states its median customer credit score is 604, with about one in three customers working multiple jobs. Meanwhile, Livble charges fees ranging from $30 to $40 without a subscription, translating to effective annual percentage rates of roughly 104 percent to 139 percent depending on payment deferral length.
Alternative Payment Methods and Market Concerns
Buy now pay later company Affirm announced this month it is piloting a program allowing customers to split rent into two payments, partnering with Esusu, a credit reporting company. An Affirm spokesman indicated the company is not charging renters interest or fees for the product but may charge landlords instead. However, the long-term sustainability of fee-free models remains uncertain.
Landlords are also increasingly accepting credit cards for rent payments, with companies like Bilt targeting renters specifically. Nevertheless, paying rent by credit card carries processing fees typically passed to tenants, ranging from approximately 2.5 percent to 3.5 percent of rent. For a renter paying $1,500 monthly, this amounts to roughly $37.50 to $52.50 in fees, comparable to dedicated rent payment services.
Economists and renters’ advocates argue these financing options fail to address fundamental affordability issues in the rental market. The Census Bureau estimated in 2024 that a large share of renter households pay 30 percent or more of monthly income on rent, classifying them as “cost burdened.” Experts worry that widespread adoption of flexible payment options could enable landlords to raise rents further by considering renters’ weekly cash flow rather than local market rates.
The broader implications of these services remain under scrutiny, particularly given that Livble is owned by RealPage, which settled allegations last year that its algorithm allowed landlords to collude and push rents higher. As rent now pay later services continue expanding, regulatory oversight and consumer protection measures may become increasingly necessary to prevent exploitation of financially vulnerable renters.
