Rising Rent Affordability Challenges for Middle-Income Renters in the United States

New research from the Urban Institute shows that a growing share of middle-income renters are unable to meet monthly rent obligations. In 2025, one-in-five renters earning between $31,300 and $62,600 (single-person households) or $53,300 and $106,600 (families of three) reported at least one missed or partial payment. This marks a sharp rise from the previous year, when roughly 14 % faced the same difficulty.

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The findings stem from the Institute’s annual Well-Being and Basic Needs Survey, which interviews more than 10,000 adults about household spending and financial strain. The survey tracks trends across income brackets and U.S. regions, allowing comparison with earlier data collected since 2019.

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• Middle-income renters: 20 % could not afford full rent at least once in 2025; 22 % reported being behind on rent at some point during the year.

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• Lower-income renters: 28 % reported an inability to pay rent in 2025, up from about 24 % in 2019.

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• High-earning renters: 7 % missed a rent payment in 2025, a 2-percentage-point increase from the prior year.

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• Utility costs: Slightly more than 20 % of all renters also struggled to pay for gas, oil, or electricity in 2025.

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• Geographic variation: The steepest increases in rent defaults occurred in the South and Northeast.

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Samantha Batko, senior fellow at the Urban Institute and co-author of the report, says the expansion of affordability stress into the middle-income segment signals broader economic pressure. She notes that missed rent payments often force families to choose between essential needs—such as medication or food—and housing, raising concerns about potential growth in homelessness. Batko adds that, while eviction rates have been relatively stable, state laws that allow eviction after a single missed payment could exacerbate housing insecurity as cost-of-living pressures persist.

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• “We have historically observed that low-income renters experience high rates of housing cost-burdens and, as a result, are particularly vulnerable to having to make choices between meeting their family's basic needs or paying rent. And sometimes that results in eviction or homelessness,” — Samantha Batko, a senior fellow at the Urban Institute and co-author of the report

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• “We are seeing a larger segment of the overall population that are faced with these daily and monthly choices,” — Samantha Batko, a senior fellow at the Urban Institute and co-author of the report

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• “The expansion to middle-income households, with significantly more households reporting challenges paying rent … that definitely raises concerns for me that there are potential implications for inflow to homelessness,” — Samantha Batko, a senior fellow at the Urban Institute and co-author of the report

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