A growing number of renters are using services that allow them to split monthly rent payments into installments, but consumer advocates warn the products can carry steep costs.

Companies like Flex, Livble, and Affirm offer to pay landlords the full rent upfront while renters repay in two or more installments throughout the month. The services have gained traction as rents have climbed nearly 28% over the past five years, according to the Bureau of Labor Statistics, and as income has become less predictable for lower-income and gig-economy workers.

Proponents say the services help renters manage cash flow. Kellen Johnson, a 44-year-old Sacramento resident, used Flex for about two years to split his $1,850 monthly rent into two payments. He paid $33.49 monthly in fees—a $14.99 subscription plus 1% of his rent—which he considered worthwhile given his variable income as a delivery contractor at the time.

However, consumer advocates caution that the fees function as short-term loan costs. Johnson’s $33.49 fee for temporarily deferring $500 translates to an effective annual percentage rate of 172%. Livble’s fees range from $30 to $40 and can carry effective rates of 104% to 139%, depending on payment timing.

Flex reports serving 1.5 million customers who send about $2 billion monthly through its system, with a median customer credit score of 604. The company says about one in three users works multiple jobs.

Affirm recently launched a pilot program that splits rent into two payments without charging renters fees, though users must subscribe to a partner service costing $35 to $50 per month.

Paying rent by credit card presents a similar cost structure, with processing fees typically ranging from 2.5% to 3.5% of rent, comparable to what installment services charge.

Economists and housing advocates argue these products don’t address underlying affordability issues and worry that widespread adoption could push rents higher as landlords factor in renters’ ability to finance payments rather than local market rates.

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