Fair market rentals (FMRs) have jumped significantly since the beginning of the decade, with rates for one-bedroom rentals jumping 40.7% in the 50 largest market area, according to a Lending Tree study.
Those rentals rose $457, from $1,122 in fiscal year 2021 to $1,578 in fiscal year 2026. In the same period, FMRs on two-bedrooms climbed 37.3%, or $505, from $1,353 to $1,858.
“These rent increases can cause a massive strain on consumers,” Matt Schulz, LendingTree chief consumer finance analyst and author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life,” said in a prepared statement. “If your income is rising at the same time your rent is, maybe that extra expense is no big deal. However, so many Americans’ financial wiggle room is tiny, even in the best of times, so having to carve out hundreds of extra dollars to pay rent each month can be a big deal.”
Where Were the Biggest, Smallest Increases?
Other report findings:
- FMR for two-bedroom units increased the most in Miami, San Diego and New York. From fiscal 2021 to fiscal 2026, FMRs in these metros rose by $885, $877, and $857, respectively.
- San Francisco saw the smallest FMR increases among major metros. From fiscal 2021 to fiscal 2026, its one-bedroom FMR rose by just $54 to $2,977, while two-bedroom FMRs increased by $51 to $3,604.
- Outside of San Francisco, four metros ranked in the bottom five for FMR increases across one- and two-bedroom units: Birmingham, Ala., Oklahoma City, San Antonio, Texas, and St. Louis, Mo. From fiscal 2021 to fiscal 2026, rents in these areas rose between $264 and $326.
“The LendingTree data illustrates how rising rents are seriously delaying the path to homeownership, but that’s not the only issue,” said Zach Schofel, Cosign CEO and founder. “When rents climb 40% over just a few years, renters spend more of their income on housing and have less capacity to save for a down payment. What often gets overlooked is that renting is also one of the most important ways people build the payment history that will eventually support a mortgage approval.”
“Housing demand is still strong, and we haven’t built enough homes,” added Seamus Nally, TurboTenant CEO. “For independent landlords, that usually means fewer vacancies and steady interest from quality renters. The fundamentals of the rental market remain solid. At the same time, higher rents have ripple effects. When households are putting more toward rent (along with other rising expenses), it naturally slows their path into homeownership, which keeps more people in the rental pool and tightens the market even further.”
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