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Multifamily drove much of the August rebound

Independent Landlord Rental Performance Report: August 2026

Key Takeaways

On-time payments increased to 83.2% in August, reversing some of the summer softness recorded in recent months
Year-over-year, on-time collections increased 85 basis points, the strongest annual improvement in over three years.
The forecast full-payment rate rose to 95.7% in August, up 50 basis points from July
Late-payment rates held at 12.1% in June after improving from early-2026 highs, consistent with normal seasonal patterns
Multifamily drove much of the August rebound, with its on-time payment rate increasing to 82.5%

The Bottom Line Upfront

August’s rent collection data provide further evidence that performance across independently operated rental properties is stabilizing. On-time payments increased to 83.2% after several months of summer softness, while year-over-year collections improved by 85 basis points — the strongest annual gain since May 2023. The latest improvement does not point to a full normalization in renter finances, but it does reinforce the view that the prolonged deterioration seen through much of 2024 and 2025 has largely run its course.

Beneath the surface, the improvement was somewhat uneven. Multifamily properties accounted for most of the August rebound, narrowing part of the performance gap that had opened relative to smaller rental formats. Late-payment activity also remains elevated, though the most recent observed reading of 12.1% in June remains well below the 13.5% highs reached earlier this year.

The pause in late-payment improvement during June is also consistent with normal seasonal patterns, as late payments have historically increased or held steady in nearly every June in the series.

The broader household backdrop remains challenging but appears somewhat more stable than earlier in the year. Consumer credit stress remains elevated, including across credit cards and auto loans, although recent data point to some modest improvement in credit card delinquency performance. For independent landlords, the overall picture remains one of improving stability rather than a return to earlier-cycle conditions.

National Overview

On-time rental payments in independently operated units improved in August 2026, reversing some of the modest summer softness recorded during June and July. According to the latest data, 83.2% of units paid their full rent on time in August, up from 82.8% in July.

The August improvement reinforces the broader stabilization trend that has taken shape over the past several months. While month-to-month performance has remained somewhat uneven, on-time collection rates have generally held within a relatively narrow range since the spring. August also remained above year-ago levels, suggesting that underlying conditions are improved relative to the sharp deterioration that characterized the second half of 2025.

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July’s on-time payment rate, initially estimated at 83.2%, has since been revised to 82.8%. As in prior months, revisions reflect the normal reconciliation of payment data and are not a material change in the broader trend.

Note: As of May 2024, monthly data estimates are reported as a three-month moving average.

Year-over-Year Change

Year-over-year payment performance strengthened further in August. Compared with August 2025, on-time collections increased by 85 basis points, marking the strongest annual improvement since May 2023.

The continued improvement is notable given the depth of the deterioration recorded just a year ago. Year-over-year declines exceeded 300 basis points during parts of late 2025 and early 2026, but those gaps have now fully reversed. While on-time payment rates remain below earlier-cycle highs, the latest annual trend provides further evidence that the sector has transitioned out of sustained decline and into a period of greater stability.

Full-Payment Rate: Historical & Forecast

The forecast full-payment rate for August 2026 — which accounts for on-time, late, and historically anticipated late payments — is estimated at 95.7%, up 50 basis points from July’s 95.2% forecast. The improvement suggests that overall payment resolution strengthened alongside the rebound in on-time collections.

The year-to-date average full-payment rate through June 2026 stood at 95.6%, placing the current pace slightly below the 2025 full-year average of 96.0% but above the 2024 average of 95.3%. Overall, full-payment performance continues to point to comparatively stable income realization for independent landlords, even as the timing of payments remains less favorable than in earlier periods.

Late Payments

Late payments remain a meaningful source of pressure for the mom-and-pop rental sector. While less damaging than outright nonpayment, payment delays can create significant operational challenges for independent landlords that rely heavily on timely rental income to meet recurring expenses.

Late-payment activity climbed from a cycle low of 8.4% in May 2024 to a post-pandemic high of 13.5% in January and February 2026. Conditions subsequently improved through the spring, with the rate declining to 12.1% by May before holding at that level in June.

The lack of further improvement in June appears broadly consistent with normal seasonal patterns. Late-payment rates have increased or held steady in every June in the dataset except 2021. Even with the recent improvement, however, the current 12.1% reading remains historically elevated and well above the levels that prevailed before the deterioration began in 2025.

Performance by Property Type

Performance across rental subsectors improved somewhat in August, led by a notable rebound in multifamily properties. The multifamily on-time payment rate increased from 81.4% in July to 82.5% in August, accounting for most of the improvement in the national rate.

Single-family rentals also improved modestly, rising from 82.9% to 83.2%, while 2–4-family rentals were essentially unchanged at 83.3%. As a result, the performance gap across property types narrowed considerably in August.

Multifamily remained the weakest-performing segment, but its rebound represents a meaningful shift after several months of underperformance. Smaller property types continue to show somewhat greater resilience overall, though August’s data suggest that recent improvement was more broadly distributed than it had been earlier in the year.

Regional Differences

At the state level, Western and Mountain states continued to account for many of the strongest-performing rental markets in August. Wyoming posted the highest on-time payment rate nationally at 95.2%, followed by Utah (92.8%), Alaska (91.2%), New Hampshire (90.9%), and Washington (90.1%).

Performance at the lower end of the distribution remained concentrated across parts of the South and selected eastern states. Delaware (69.2%), Mississippi (72.0%), West Virginia (77.0%), Illinois (77.9%), and Tennessee (78.7%) recorded the lowest on-time payment rates nationally.

Although individual state readings can move considerably from month to month, the broader geographic pattern remains relatively consistent. Western and Mountain markets continue to outperform, while weaker payment performance remains more concentrated across portions of the South and East.

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 59,420 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: Chandon Economics