The median monthly rent in the U.S. remained at $1,200 last year, according to the Federal Reserve’s report on household economic well-being. However, the share of renters falling behind on payments continued to grow, with 23% of renters reporting being behind on rent at some point in 2025.
The share of renters falling behind on payments is up from 21% in 2024 and 19% in 2023, indicating increasing financial strains on renters. The national median rent has remained above $1,100 since 2023, and lower-income renters have experienced the greatest difficulties.
Among renters with family income below $25,000, 33% reported falling behind in 2025, while 31% of those earning $25,000 to $49,999 also experienced difficulties. In contrast, only 5% of renters earning at least $100,000 fell behind on payments.
The survey shows that households face challenges in making recurring payments, even when the payment amount does not increase. Income fluctuations, unexpected expenses, and competing bills can all complicate the monthly budget.
These figures are not limited to renters and do not explain the increase in rent arrears.
Read Also: Most Mergers and Acquisitions Ultimately Fail
For workers with uneven earnings, an annual income figure can conceal months with lower income, creating a potential mismatch between available cash and required payments.
The most common expenses were vehicle repairs or replacement, major home or appliance repairs, and unexpected medical expenses.
Among adults struggling with bills, 48% cut other expenses, 42% paid a bill late, and 23% used a credit card to cover expenses. Twenty-two percent received or borrowed money from friends or family to make ends meet.
Nearly half of adults ages 18 to 29 received outside help with an expense over the previous year, including 23% who received assistance specifically for rent, mortgage payments, utilities, or other housing costs.