Impact
Rent Reporting for Credit Building has been studied for over 10 years through research, pilots, surveys, case studies, interviews, simulations, and a randomized controlled trial (RCT). The results below summarize how positive rent reporting can help renters establish or increase their credit scores, get on a path to homeownership, and improve financial wellness. In addition, affordable housing providers can benefit from an increase in on-time payments. Due to rent reporting's impact, it is rapidly growing in popularity and policy adoption.
CREDIT SCORE IMPROVEMENT
Positive-only rent reporting helps residents who pay on time but have no or low credit scores.
Reducing Unscorability
In one pilot , observing residents who were initially unscorable, 100% became scorable at prime or nonprime levels.
A simulation for NYC residents found that nearly 1 in 3 of tenants with rents under $2,000 gained a credit score for the first time.
Significant Score Gains
A Colorado Rent Reporting Pilot Program reported an average score increase of 62 points.
A randomized study estimated that there was a 25 percentage point increase in the likelihood that a rent reporting participant would have a near-prime score or higher.
In a research brief using TransUnion Data, CBA found that 12% of rent reporting participants moved from subprime to prime credit tiers within 12 months.
EXPANDING ACCESS TO HOMEOWNERSHIP
While not a cure-all for credit challenged residents, positive rent reporting can put them on a path to homeownership and mortgage eligibility.
Closing the Gap
Rent reporting is cited as a tool that could help narrow the Black-White homeownership gap. In addition, rental history is considered a strong predictor of mortgage default.
This video of the DC Housing Authority shares insights on the positive effects of rent reporting. At least 10 participants in this program have since become homeowners.
Eligibility and Impact
In their white paper, VantageScore estimated that when on-time rent is included, 99.7% of "credit invisible" consumers achieved a score of at least 620, making them mortgage-eligible under current Fannie Mae and Freddie Mac guidelines. This shift could unlock up to $777 billion in new mortgage lending.
BENEFITS FOR LANDLORDS AND RESIDENTS
Positive rent reporting programs benefit both residents and landlords. As shown in these case studies, there are plenty of affordable housing providers who have successes and lessons to share.
On-Time Payments Incentive
Of renters surveyed by TransUnion, 80% say they would be more likely to pay rent on time if it were reported to a credit bureau.
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While there are current increases in credit scores to celebrate, the rent reporting program is also laying the foundation for long-term, intergenerational financial success.
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- Case Study Participant
Support for Resident Services
Rent Reporting is shown to enhance participation in other financial capability programs, such as credit coaching and bank account enrollment.
INCREASED POPULARITY
Rent reporting has grown over the last 20 years, and there has been state, local, and national legislation to promote wider adoption.
Market Growth
The share of renter households participating in rent reporting quadrupled between 2020 and 2024.
Legislative Momentum
Policy remains a major driver across the country with higher reporting rates found in states experiencing multifamily housing growth. To see CBA’s policy recommendations, click here.
