Monthly Tracker of On-Time Payments in Non-Institutional ("Mom-and-Pop") Rental Properties

Key Takeaways

1. On-time payments came in at 83.8% in June, little changed from May’s revised estimate of 83.9%, suggesting that the recent recovery in rent collection performance has lost some momentum.

2. Year-over-year, on-time collections were up 22 basis points from June 2025, ending a 34-month streak of annual declines and marking the first annual increase since early 2023.

3. The forecast full-payment rate for June came in at 96.2%, down from May’s especially strong reading but still consistent with relatively firm overall payment resolution.

4. The most recent observed late-payment reading came in at 12.0% in April, down from the 13.5% highs reached earlier this year, though late-payment activity remains historically elevated

5. State-level performance remained uneven, with New Hampshire, Alaska, Wyoming, South Dakota, and Utah posting the highest on-time payment rates, reinforcing the broader pattern of Western and Mountain strength.

The Bottom Line Upfront

June’s rent collection data point to a market that is still stabilizing, though the recovery appears to be entering a flatter and more uneven phase. On-time payment rates were little changed from May, suggesting that the gradual improvement in collections has slowed. At the same time, June marked an important milestone: on-time collections rose above year-ago levels for the first time in nearly three years, underscoring how far conditions have improved from the lows reached in late 2025. Still, the broader signal remains one of stabilization more than full normalization.

Beneath the surface, conditions remain mixed. Late-payment pressure improved meaningfully through the spring, with the most recent observed reading coming in at 12.0% in April, down notably from the 13.5% highs reached in January and February. That marks real progress, but late-payment activity remains historically elevated. Rates above 10% were once unusual, while current readings in the low-12% range still point to a level of payment strain that remains well above normal.

Full-payment resolution also softened from May’s especially strong reading, but remained relatively firm by historical standards. For independent landlords, that distinction matters. Missed payments are still being cured at a reasonably healthy rate, but payment timing remains strained, and cash-flow pressure has not fully abated.

The broader macro backdrop continues to argue for caution. Household finances were already under strain before the latest run-up in energy prices, and more recent data suggest that many renters and lower-liquidity households are operating with increasingly limited financial buffers. Credit card delinquency rates remain elevated, student loan borrowers continue to adjust to the resumption of mandatory payments, and the personal saving rate has fallen back to a low level.

Gas prices have eased somewhat from their recent peak, offering a modest source of relief, but they remain well above late-2025 levels. Taken together, the latest macro data suggest that recent stabilization in rent collections remains vulnerable to renewed cost-of-living pressure.

On-time rental payments in independently operated units were little changed in June 2026, suggesting that the broader recovery in rent collection performance may be losing some momentum. According to the latest data, 83.8% of units paid their full rent on time in June, compared with May’s revised estimate of 83.9%. While June’s reading remains modestly above year-ago levels, the latest month points to a flatter pattern after several months of gradual improvement.

June marked an important milestone in the recent improvement cycle. Compared with June 2025, on-time collections were up by 22 basis points, ending a 34-month streak of year-over-year declines and marking the first annual increase since early 2023.

That shift is notable, particularly given how deeply year-over-year performance had deteriorated during the second half of 2025. Annual gaps that exceeded 300 basis points late last year have now fully closed, underscoring how far rent collection conditions have recovered from their recent low. Still, the broader pattern remains one of stabilization more than full normalization. On-time payment rates remain well below prior-cycle highs, but the latest data suggest that the prolonged period of annual slippage has likely run its course.

Full-Payment Rate: Historical & Forecast

The forecast full-payment rate for June 2026 — which accounts for on-time, late, and historically anticipated late payments — is estimated at 96.2%. While that marks a pullback from May’s 97.1% reading, overall payment resolution remains relatively firm by historical standards, even as on-time payment performance appears to have flattened.

Observed full-payment rates through the first two months of 2026 averaged 96.3%, putting the year-to-date pace slightly ahead of the 2025 full-year average of 96.0%. June’s lower forecast suggests some softening from that early-year pace, but not a breakdown in overall collection outcomes. For independent landlords, the broader signal is that income realization has remained comparatively stable, even as payment timing has become somewhat less favorable again.

Late Payments

Late payments remain the primary source of underperformance for the mom-and-pop rental sector. While late payments are generally less damaging to property-level economics than outright nonpayment, they continue to pose a meaningful operational challenge. Independent landlords rely heavily on timely rental income to meet recurring expenses, making payment delays particularly disruptive.

Late-payment activity rose steadily through much of 2024 and 2025, climbing from a cycle low of 8.4% to a post-pandemic high of 13.5% in January and February 2026. The most recent observed reading came in at 12.0% in April, indicating that conditions improved meaningfully through the spring after deteriorating sharply earlier in the year.

Even so, late-payment pressure remains well above longer-run norms. Rates above 10% were once relatively uncommon, while current readings in the low-12% range still point to a level of payment strain that remains historically elevated. Rather than signaling a full normalization in renter finances, the data suggest that financial strain among renter households remains a meaningful headwind.

At the same time, relatively firm full-collection rates suggest that a larger share of missed payments are still being cured rather than remaining unpaid. So long as late payments remain elevated, however, the scope for further improvement in on-time payment rates will remain limited.

Performance by Property Type

Performance across rental subsectors continues to show a clear gradient. In June 2026, 2–4-family rentals once again led all property types, posting an on-time payment rate of 84.6%. Single-family rentals followed at 84.0%, while multifamily properties remained the weakest-performing segment at 82.3%.

Compared with May, performance was little changed to modestly softer across all three segments. Single-family rentals held steady, while 2–4-family and multifamily properties both edged lower. That pattern suggests the recent recovery in rent collection performance has lost some momentum, even as the long-standing resilience advantage of smaller property types remains intact.

While on-time payment rates remain below earlier-cycle highs across all segments, the broader ordering has not changed. Smaller-format rentals continue to outperform, while multifamily remains the clearest laggard. This suggests that rent collection conditions remain differentiated by property type, with the greatest pressure still concentrated in the multifamily segment.

Regional Differences

At the state level, regional performance patterns remained broadly consistent in June 2026. Western and Mountain states continued to dominate the upper end of the distribution, joined by a small number of standout performers elsewhere. New Hampshire (92.5%), Alaska (92.2%), Wyoming (91.7%), South Dakota (91.1%), and Utah (91.0%) posted the highest on-time payment rates in the country.

While the exact leaderboard shifted somewhat from May, the broader pattern of Western and Mountain outperformance continues to hold. These regional differences likely reflect persistent variation in local economic conditions, renter income profiles, and cost burdens, which continue to shape rent collection outcomes across markets.

Importance of the Independent Landlord Rental Performance Report

The Independent Landlord Rental Performance report provides valuable insights into how well non-institutional landlords are managing rental payments. It uses data from property management software RentRedi, showcasing results from 61,275 units. Information is collected and reported monthly by Chandan Economics. The trends highlighted here can serve as a benchmark for investors, brokers, and policymakers to understand the health of independent landlords in the rental market.

Source: Chandan Economics