Feb 9, 2026
A new twist on “buy now, pay later” (BNPL) financing is emerging, and this time, it’s aimed at the biggest payment most Americans make monthly: housing. Specifically, rent.
Affirm, one of the largest BNPL companies in the U.S., is piloting a program that allows eligible renters to split their monthly rent into two equal biweekly payments at 0% interest, instead of paying one lump sum at the start of the month, CNBC reports.
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The program is being offered through a partnership with rental data platform Esusu and is currently available only to renters at participating properties who subscribe to Esusu’s paid membership tiers.
While the option may appeal to renters struggling to put aside enough from their paychecks to make rent at the end of the month, applying BNPL to a fixed, recurring expense like housing could backfire and potentially threaten renters’ long-term financial stability, financial experts warn.
How BNPL works with rent
Not just anyone can participate in the program. Eligibility is determined through underwriting that evaluates a renter’s ability to repay, CBS News confirmed (2).
The service also is not free. Renters must be subscribed to Esusu’s Plus or Premium membership, which costs $35 or $50 per month and includes access to rent reporting to credit agencies and financial coaching, among other perks. The company has not yet announced a nationwide rollout date (1).
Although other BNPL providers already offer installment payments for rent, Affirm’s size and reach make this a significant expansion of BNPL into essential living costs.
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Why this matters for renters
Rent is already the largest monthly expense for many households, and a growing number are struggling.
The Bureau of Labor Statistics’ shelter index, which includes rent, is up year-over-year by more than 3% (3). And nearly half of households renting in the U.S. are considered cost-burdened, meaning they spend more than 30% of their income on housing, according to the U.S. Census (4).
At the same time, BNPL usage has exploded. Affirm alone reports having more than 24 million consumers using its services for purchases ranging from splurges to everyday costs (2).
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For renters living paycheck to paycheck, splitting rent into smaller payments may feel like a welcome relief, especially when income arrives biweekly rather than monthly.
Why experts are cautious
In limited or urgent situations, experts acknowledge that spreading out payments could give renters flexibility and help them manage short-term cash-flow issues without resorting to high-interest credit cards or payday loans.
Certified financial planner Chris Jackson told CNBC that the tool could be useful in a “true pinch” or “short-term emergency” (1).
But experts stress that BNPL is far riskier when applied to recurring, non-negotiable expenses like rent.
Adam Rust, director of financial services at the Consumer Federation of America, warns that borrowing to cover rent can quickly get out of control — and BNPL is a form of borrowing. Relying on it could lead to “a death spiral that actually threatens a tenant’s housing security,” Rust told CBS.
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LendingTree’s chief consumer finance analyst, Matt Schulz, adds that BNPL can distort how affordable rent truly is. He notes that renters “might feel like they can afford a bigger monthly rent because they’re able to spread the cost out over multiple paychecks,” and calls it “a pretty risky game” (2).
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The risk of stacking debt
One major concern is that renters already using BNPL for retail purchases may end up juggling multiple installment loans at once.
In fact, research from the Consumer Financial Protection Bureau found that about 63% of BNPL borrowers have multiple BNPL loans at one time, and 33% used multiple lenders (5), while a LendingTree survey shows that roughly 42% of BNPL users have made a late payment (6).
This shows how easily payments can become hard to track and manage, and raises red flags about affordability and consumer understanding. As BNPL becomes a routine way to pay for essentials, it can mask deeper affordability issues rather than solve them — especially if renters rely on it month after month.
On top of this, borrowers need to understand that missed payments could hurt their credit score, although they could also build credit using this service responsibly.
What to consider before using BNPL for rent
If you’re considering a BNPL option for rent, it's smart to ask yourself a few key questions first:
- Can I comfortably afford both biweekly payments without borrowing elsewhere?
- Am I already managing other BNPL loans or high-interest debt?
- Is this for a true short-term emergency, or is it becoming a habit?
- Have I spoken to my landlord first? Some landlords may offer temporary flexibility without involving a lender.
It’s also important to factor in any monthly fees when calculating affordability, as the added cost may outweigh the convenience for some renters.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CNBC (1); CBS News (2); Bureau of Labor Statistics (3); U.S. Census (4); Consumer Finance Protection Bureau (5); LendingTree (6)
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With a writing and editing career spanning over 13 years, Emma creates and refines content across a broad spectrum of industries, including personal finance, lifestyle, travel, health & wellness, real estate, beauty & fitness and B2B/SaaS/tech. Her versatility comes through contributions to high-profile clients like Moneywise, Healthline, Narcity and Bob Vila, producing content that informs and engages, along with helping book authors tell their stories.
