Renters are nearly three times more likely than homeowners to lack health insurance
Renters’ Health Insurance Coverage May Be a Financial Risk Factor for Landlords
A sizable portion of renters, particularly those living in small buildings and single-family rentals, are at elevated risk of budget fragility amid potential changes to Affordable Care Act (ACA) premium support, according to a new analysis from Chandan Economics.
Renters are nearly three times more likely than homeowners to lack health insurance and rely more heavily on public coverage. The study found that 11.7% of renters are uninsured, compared with 4.4% of homeowners, while 29% of renters depend on public insurance.
“Any disruption to subsidies or exchange operations would disproportionately affect renters who already sit on the margin between coverage and going uninsured,” the report said.
The findings highlight broader income and employment disparities that shape access to private plans, Chandan noted. Homeowners tend to have more diverse coverage sources, with 21.5% holding mixed insurance types compared with 10.5% of renters — a reflection of age and household structure. Homeowners are often older and part of multi-adult households, increasing the likelihood that one member carries employer coverage while another qualifies for public or supplemental insurance.
Within the rental market, insurance coverage also varies by property type. Multifamily renters had the highest rate of private insurance at 51.2% and the lowest uninsured rate at 9.8%, a trend Chandan attributed to better access to urban labor markets and employer-sponsored plans.
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By contrast, single-family renters had the weakest coverage profile, with 49.2% privately insured and 12.8% uninsured, pointing to coverage gaps in lower-density suburban and exurban areas. Renters in two-to-four-family buildings fell in between, though 32.6% rely on public programs, suggesting a link between older, smaller housing stock and lower household incomes.
Roughly 18% of privately insured renters receive an ACA subsidy, compared with 21% of homeowners. Subsidy use ranges from 16% for single-family renters to 19% for multifamily occupiers.
Chandan suggested that subsidy participation among tenants remains lower than expected because many earn too much for Medicaid but still face cost barriers, even with ACA assistance. Lower expected healthcare utilization also leads some to remain uninsured despite qualifying for subsidies.
“Higher out-of-pocket costs—or lapses in coverage—can translate into tighter monthly cash flow, raising delinquency risk and softening leasing velocity at the value end of the market,” Chandan said.
“For operators, the takeaway is straightforward: coverage instability is rent-roll risk. Monitoring subsidy policy, offering flexible payment options, and targeting resident services can help cushion exposure if policy uncertainty lingers.”
Source: GlobeSt.
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