Middle-income Americans increasingly struggle with rent payments

Key facts

• 20% of Americans aged 18-64 couldn't pay full rent on time at some point in 2025.
• Middle-income renters (200%-400% of federal poverty line) saw the largest increase in rent payment struggles.
• Middle-income renters' share reporting rent payment problems rose from 14.3% in 2024 to 21.6% in 2025.
• Middle-income workers are increasingly holding multiple jobs and identifying as working class.
• Middle-income Americans' consumer sentiment now mirrors that of lower-income earners.

A growing number of middle-income Americans are facing difficulties in paying their rent on time, a trend that has reached its highest point since 2019, according to a new report from the Urban Institute. In 2025, one-fifth of Americans aged 18 to 64 reported being unable to pay their full rent on time at some point during the year. This marks a significant increase from 2024.

While lower-income renters continue to experience the most severe rent payment challenges, the middle-income bracket, defined as earning between 200% and 400% of the federal poverty line, saw the most substantial rise in difficulties. Their share reporting rent payment problems increased from approximately 14.3% in 2024 to 21.6% in 2025. This demographic is increasingly identifying as working class, often taking on multiple jobs to achieve financial stability, according to separate research from the Richmond Federal Reserve.

This shift in financial pressure on middle-income households can exacerbate the struggles of the poorest Americans. As middle-income earners compete for more affordable rental units, landlords may favor those with better credit scores, intensifying competition for lower-income individuals. Kathryn Reynolds, an author of the Urban Institute report, noted that this dynamic puts additional pressure on the lowest-income households seeking moderately priced units. High prices and increasing borrowing costs may further hinder potential solutions like falling necessity costs or increased housing construction.