More Americans are taking out loans to pay rent, and the numbers from this year’s surveys point in one direction. A LendingTree report published in July found that 8.2 percent of Americans now take out personal loans for everyday bills, up from 3.4 percent three years earlier. A separate survey of adults carrying at least $10,000 in unsecured debt found that one in three had used a credit card or borrowed money to cover rent or housing costs in the past year. Behind those figures is a housing market where rents have cooled but remain out of reach, and where Harvard researchers counted a record 22.7 million cost-burdened renter households in 2024, about 49 percent of all renters. We’ll be updating this article monthly.
Borrowing to pay rent can keep a household housed for another month, but it can also turn a short cash gap into a long-term debt problem. Personal loans, credit cards, payday products and buy now, pay later plans all carry costs, and the cheapest option is often a payment plan with your landlord or a local assistance program that does not have to be repaid. Federal rental assistance exists, but it reaches only about one in four eligible households. This guide explains why borrowing is rising, what it really costs, which rent help programs are available, how to apply, how long it can take, and how to avoid the most expensive traps.
Why Are More Americans Taking Out Loans to Pay Rent?
The short answer is that rent has outrun paychecks for a long time, and a record number of households have no cushion left. Several recent surveys paint the same picture from different angles.
| Survey or report | Finding |
|---|---|
| Harvard Joint Center for Housing Studies, 2026 | A record 22.7 million renter households, or 49 percent, were cost burdened in 2024 |
| Harvard Joint Center for Housing Studies, 2026 | About 12.1 million renters, or 26 percent, paid more than half their income for housing |
| LendingTree, July 2026 | 8.2 percent of Americans took personal loans for everyday bills, up from 3.4 percent three years ago |
| Credible, January 2026 | One in five took a small loan of $2,500 or less, and one in four of those used it for rent or utilities |
| Accredited Debt Relief and Atomik Research, 2026 | 33 percent of adults with at least $10,000 in unsecured debt used a credit card or loan for rent or housing |
| Redfin survey, February 2026 | 49 percent of Americans struggle to afford rent or a mortgage, including 67 percent of Gen Z |
| Groundwork Collaborative and Protect Borrowers poll | Among buy now, pay later users, 24 percent borrowed to cover rent |
These surveys use different samples, so they cannot be added together, and some are commissioned by lenders or debt-relief companies. Read them as signals of a trend, not as a single national count. The direction is consistent, though, and it matches what the Harvard data shows about housing costs.
What the Harvard 2026 Housing Reports Say About Rent Burdens
The Joint Center for Housing Studies released its America’s Rental Housing 2026 report in March and its State of the Nation’s Housing report in June. Both described a rental market that has cooled while the affordability crisis has deepened. National rent growth hovered near zero from mid-2023 into 2025, and rents for new leases have dipped modestly, but that did not undo the large increases of the pandemic years.
The pressure is not limited to the poorest households. Among renters earning $45,000 to $74,999, just over 49 percent were cost burdened, up more than 24 points since 2001. Among renters earning $30,000 to $44,999, 72 percent were burdened. For renters earning under $30,000, the share is 83 percent, and 67 percent are severely burdened.
| Renter income | Share of renters cost burdened, 2024 |
|---|---|
| Under $30,000 | 83 percent |
| $30,000 to $44,999 | 72 percent |
| $45,000 to $74,999 | About 49 percent |
| $75,000 or more | 14 percent |
The researchers also noted that from 2014 to 2024, the number of units renting for less than $1,400 fell by 9.3 million, while units renting for $1,400 or more rose by 11.8 million. A household that earned its way out of the lowest income bracket often found that the apartments it could afford were disappearing.
Which Types of Loans Do People Use to Pay Rent?
People reach for different products depending on how fast they need the money and what their credit looks like. Each has a different cost structure.
| Loan type | How it works | Main risk |
|---|---|---|
| Personal loan | Fixed payments over months or years | Interest and fees add up, and approval can take days |
| Credit card or cash advance | Revolving balance, often with cash advance fees | High interest if the balance is not paid off quickly |
| Buy now, pay later | Short installment plans, often four payments | Late fees and stacked plans can create a debt spiral |
| Payday loan | Short-term loan due on your next paycheck | The Consumer Financial Protection Bureau says a typical two-week loan with a $15 fee per $100 equals an APR of almost 400 percent |
| Family or friends | Informal loan, often no interest | Strain on relationships if repayment slips |
| Rent payment apps and advances | Pay rent upfront, repay later | Fees and credit card surcharges |
The Credible survey found that 40 percent of people who took a small personal loan said they were unsure if they could pay it back. That is a warning sign, because a loan taken to cover rent does not make the next month’s rent any smaller.
The Real Cost of Borrowing to Pay Rent
A loan solves a timing problem, not an income problem. If your rent is $1,600 and you borrow it for 12 months at 20 percent interest, you will repay roughly $1,780 in total, which is about $180 in interest, and you will make payments of about $148 a month on top of future rent. At a higher rate or with fees, the extra cost climbs fast.
A payday loan can be much worse. Borrowing $400 for two weeks at a $15 fee per $100 costs $60, and if you cannot repay on time and roll it over, the fees stack. A credit card cash advance can add a fee of several percent right away, with interest that starts immediately.
Use the calculator that comes with this article to enter your own amount, rate and term. Compare the total cost with the late fee in your lease and with the cost of asking your landlord for a payment plan.
Warning Signs You Are Borrowing Too Much for Housing
Watch for a few patterns. You may be in trouble if you borrow to pay rent two months in a row, if you use one loan to pay another, if your debt payments plus rent take more than half your take-home pay, or if you skip groceries or medicine to make a payment. Those are signs that you need income help, not another loan.
The usual rule of thumb is to spend no more than 30 percent of income on housing. The Penny Hoarder’s 2026 State of Debt report found that almost a third of respondents spend more than 30 percent of take-home pay on rent or a mortgage payment. If you are above that line, it is worth looking at both ways to cut costs and ways to add income.
Rental Assistance Programs That Can Help Instead of a Loan
Help does exist, though it is uneven and often slow. The most important thing to know is that assistance is mostly local, and that the big federal programs have long waiting lists.
Housing Choice Voucher program
The federal voucher program, often called Section 8, helps eligible low-income households pay rent in private housing. It is run by local public housing agencies, and in many areas the waiting list is closed or very long. Check with your local agency to see when lists open.
Public housing and subsidized apartments
HUD funds public housing and privately owned subsidized apartments with income-based rent. You apply directly with the property or housing agency.
Emergency and one-time rental help
The large pandemic emergency rental assistance programs have wound down, but many cities, counties, states and charities still run smaller one-time programs for rent, utility arrears or eviction prevention. Dialing 211 or using the 211 website connects you to local options.
Housing counseling
HUD-approved housing counseling agencies offer free or low-cost advice on budgeting, landlord talks and avoiding eviction. HUD maintains a searchable list.
Utility and energy help
If utilities are what is squeezing your budget, the Low Income Home Energy Assistance Program can help with heating and cooling bills in many states, which frees up cash for rent.
Legal aid
If you have received an eviction notice, contact a local legal aid office right away. Many courts and cities also run eviction diversion programs.
| Program or resource | Who it helps | Typical form of help |
|---|---|---|
| Housing Choice Voucher | Low-income renters | Ongoing rent subsidy, long waitlists |
| Public housing | Low-income households | Income-based rent in subsidized units |
| 211 | Anyone in need | Referral to local rent and utility help |
| HUD housing counseling | Renters and homeowners | Free advice and referrals |
| LIHEAP | Low-income households | Help with energy bills |
| Legal aid | Renters facing eviction | Free or low-cost legal help |
How Much Federal Rental Assistance Is There?
Not enough, according to the Harvard researchers. In 2023, about 19.1 million very low-income households were eligible for federal rental assistance, but only about 5.4 million received it. Congress increased tenant-based rental assistance funding by about $2.4 billion in the 2026 spending law, and the budget for HUD went up instead of facing the deep cuts that had been proposed. The researchers warned that even this increase may not be enough to keep all current households covered, let alone reach new ones.
A national renter survey from the National Low Income Housing Coalition shows what that means in practice. Among renters who applied for help and did not receive it, 37.8 percent were denied, 36.8 percent were put on a waitlist, and 17.3 percent never heard back. More than a quarter of those who were denied were never told why. Most renters who had lost assistance in the past two years said the help ran out because it was only available for a limited time.
The takeaway is to apply to several programs at once, keep copies of every application and follow up in writing.
How to Apply for Rental Assistance 2026?
The process varies by city and state, but the basic steps are the same.
Step 1: Gather your documents
You will usually need photo ID, proof of income, your lease, a notice from your landlord if you are behind, and recent utility bills. If you lost income, bring proof such as a layoff letter or reduced pay stubs.
Step 2: Call 211 or your local housing agency
Ask which programs are open now and which have waitlists. Ask about eviction prevention and one-time rent help.
Step 3: Apply to more than one program
City, county, state and nonprofit programs often have separate applications. Applying to several raises your odds.
Step 4: Talk to your landlord
Many programs need a landlord to provide a W-9 or a payment ledger. Landlords also often prefer a payment plan or assistance payment to an eviction.
Step 5: Track every deadline
Write down dates, case numbers and names. Respond quickly if a caseworker asks for more documents.
How Long Does Rental Assistance Take?
Timelines differ a lot. A small local program may decide within a few weeks if your documents are complete, while a voucher waitlist can last years. Some programs process applications in the order received, and funds can run out before everyone is served.
Because timing is uncertain, do not wait to talk to your landlord. If you have a court date, bring proof of your application with you, since some courts pause cases when assistance is pending. Ask each program for its estimated decision time in writing and for a status check number.
Payment Schedule: How Rent Help and Loan Repayments Are Paid
Most rent assistance is paid directly to your landlord, often as a one-time payment or for a limited number of months. Vouchers are paid monthly to the landlord, and you pay your share of the rent. A loan works the other way, with fixed monthly payments to the lender on a schedule you agree to.
| Type of help | Who gets the money | Typical schedule |
|---|---|---|
| One-time rental assistance | Landlord | Single payment after approval |
| Housing Choice Voucher | Landlord | Monthly, with your share paid by you |
| Personal loan | You, then repaid to lender | Fixed monthly payments, often 12 to 60 months |
| Credit card | You | Minimum payment due monthly |
| Buy now, pay later | You | Installments, often every two weeks |
| Payday loan | You | Lump sum due on your next payday |
If you take a loan, set up automatic payments for at least the minimum and confirm that your payment date matches your payday. A missed payment can add late fees and lower your credit score.
Smarter Alternatives to Borrowing for Rent
Before you borrow, try these steps in order.
Ask your landlord for a payment plan
Many landlords would rather split a payment than start an eviction. Ask for the plan in writing.
Check for local one-time help
Call 211 and ask about rent, utility and eviction prevention programs.
Negotiate other bills
Ask utilities, medical providers and credit card companies about hardship plans so you can free up cash for rent.
Use a nonprofit credit counselor
A credit counselor can review your budget and sometimes set up a debt management plan with lower interest.
If you must borrow, compare the full cost
A credit union loan or a small installment loan is usually cheaper than a payday loan or cash advance. Ask for the APR, all fees and the total repayment amount before you sign.
Official Resources for Rent Help and Safe Borrowing
| Resource | What it is for | Link |
|---|---|---|
| HUD rental help | Find state-by-state rental assistance information | https://www.hud.gov/helping-americans/rental-assistance |
| HUD housing counseling | Find an approved counselor | https://www.hud.gov/findacounselor |
| 211 | Local rent, utility and emergency help | https://www.211.org |
| Consumer Financial Protection Bureau | Guides on loans, rent and debt | https://www.consumerfinance.gov |
| Report a lender complaint | File a complaint with the CFPB | https://www.consumerfinance.gov/complaint/ |
| LIHEAP | Energy bill help | https://www.acf.hhs.gov/ocs/programs/liheap |
| Legal Services Corporation | Find free civil legal aid | https://www.lsc.gov/about-lsc/what-legal-aid/get-legal-help |
| Federal Trade Commission | Report scams and review debt advice | https://consumer.ftc.gov |
| Harvard Joint Center for Housing Studies | Rental housing research | https://www.jchs.harvard.edu |
FAQs About Loans to Pay Rent
Is it a good idea to take out a loan to pay rent?
Only as a last resort and only after you have asked your landlord for a plan and checked for assistance. A loan adds interest on top of rent you still owe.
What is the cheapest way to borrow for rent?
Usually a payment plan with your landlord, a no-interest loan from family, or a credit union installment loan. Payday loans and cash advances tend to be the most expensive.
How many Americans are using loans to pay rent?
Surveys vary. LendingTree says 8.2 percent of Americans took personal loans for everyday bills, and another survey found a third of people with $10,000 or more in unsecured debt used credit or loans for rent or housing.
Can I get rental assistance if I have bad credit?
Yes. Most rental assistance programs look at income and housing need, not credit scores.
Does rental assistance have to be repaid?
No. Grants and voucher subsidies are not loans, but you must follow the program rules.
What if I cannot pay rent this month?
Tell your landlord before the due date, ask for a written plan, call 211 and apply for any local help. If you get an eviction notice, contact legal aid at once.
Do buy now, pay later loans hurt my credit?
They can if you miss payments or if a lender reports the account. Stacking several plans also makes it easy to miss a due date.
How do I find a legitimate lender?
Check that the lender is licensed in your state, read all terms and avoid anyone who asks for fees upfront or guarantees approval.
Can you use a personal loan to pay rent?
Yes. Most personal loans can be used for any purpose, but you will repay interest and fees on top of the rent you borrowed.
Can you pay rent with a credit card?
Yes, many landlords and rent portals accept cards, but they may charge a fee, and interest can be high if you carry a balance.
What happens if I borrow to pay rent and cannot repay?
You can face late fees, collection calls, a lower credit score and possibly court action. Contact the lender early to ask for a hardship plan.
What percentage of income should go to rent?
The common guideline is 30 percent. Households spending more are considered cost burdened, and those spending more than half are severely burdened.
How can I get help paying rent right now?
Call 211, contact your local housing agency, ask your landlord for a payment plan and look for charities or religious organizations that offer one-time help.
Is there federal money to pay rent?
There is federal funding for vouchers and other housing programs, but most one-time rent help comes from local programs, and waitlists are long.
Conclusion
More people are borrowing to pay rent because housing costs have outrun income for millions of households, and the safety net does not reach everyone who qualifies. A loan can bridge a short gap, but it can also add months of payments. Start with your landlord, call 211, apply to every program you may qualify for and compare the full cost of any loan before you sign. Use the official links above for current help, and check back here for updates as new data and programs become available.
