More and more middle-income Americans are struggling to make rent
Middle-income Americans increasingly say they couldn't pay their rent on time. It's another warning sign for America's middle class.
Middle-income Americans are facing increasing challenges in paying their rent, a new report from the Urban Institute reveals. In 2025, 21.6% of middle-income renters struggled to pay their rent on time, the highest percentage since the survey began in 2019. This is a significant increase from 14.3% in 2024. Rent payment troubles among middle-income renters, who earn between 200% to 400% of the federal poverty line, have risen sharply.
Despite lower-income renters, earning below 200% of the federal poverty line, remaining the most likely to have trouble paying their rents, the surge in rent issues among middle-income households adds pressure to their economic situation. Middle-income workers are increasingly identified as working class, and many hold multiple jobs to make ends meet.
This financial strain is contributing to a downward trend, as middle-income earners opt for cheaper rental units, leading landlords to favor higher-income tenants. As prices remain high and borrowing costs increase, alleviating the economic pressures faced by middle and lower-income households may prove challenging.
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