More middle-income renters are struggling to make monthly payments, according to new research that points to growing affordability pressures across the U.S. The Urban Institute found that a rising share of households are missing rent or paying late, increasing their risk of eviction.
While the nation’s lowest-income renters have long shouldered high housing cost burdens, the Urban Institute’s new report shows affordability strains now cut across income levels.
One in five middle-income renters reported that at some point during 2025 they could not pay the full rent when due. That is up from about 14% the year before.
Researchers said the squeeze is being driven by broader economic pressures and rising costs for essentials. Slightly more than 20% of renters also struggled to cover gas, oil or electricity last year.
“This increase among middle-income renters is a big and important shift that reflects overall challenges with affordability in the country,” said Samantha Batko, a senior fellow at the Urban Institute and a co-author of the report.
Middle-income renters see sharpest rise
The trend is specific to renters, the researchers found. Homeowners’ ability to keep up with mortgage payments has held steady for seven years, while the share of renters falling behind has risen since 2022.
Nearly 28% of lower-income renters said they could not pay rent at some point in 2025, up from around 24% in 2019. But middle-income renters, defined as single adults earning $31,300 to $62,600 or a family of three earning $53,300 to $106,600, experienced the most pronounced jump in hardship.
Nearly 22% of those middle-income renters said they were unable to pay the full rent at least once in 2025 because they could not afford it.
Even the highest-income renters saw an uptick. About 7% missed a rent payment at least once last year, a 2 percentage-point increase from the prior year.
“We are seeing a larger segment of the overall population faced with daily and monthly choices,” Batko said, noting that missed or partial payments often reflect families prioritizing essentials such as medication or food over rent.
Regional variation and eviction concerns
The findings come from the Urban Institute’s ongoing analysis of responses to its annual Well-Being and Basic Needs Survey, which tracks spending and financial strain among more than 10,000 adults. While affordability issues are nationwide, researchers said the sharpest rise in rent defaults last year occurred in the South and Northeast.
Eviction laws vary by state, and Batko warned that a single missed payment can lead to losing housing in some places. She said the expansion of payment trouble into middle-income households raises concerns about potential inflows into homelessness.
Policy backdrop and outlook for middle-income renters
Eviction rates have remained relatively steady in recent years, according to tracking by the Eviction Lab. Still, with living costs climbing for many families, researchers expect the share of households unable to pay rent to continue rising. At the same time, accessing assistance could get harder.
The administration has proposed a rule that would allow federal housing-assistance program administrators to set restrictions such as time limits and work requirements. Housing advocates warn this could reduce access to federal aid, including rental subsidies.
Some housing analysts note that policy shifts, including interest rate moves, can ripple through rents and ownership costs, affecting both tenants and homeowners in different ways, similar to the dynamics described in what it could mean for consumers when borrowing costs rise.
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