Rental Market Performance in 2025—State-by-State Breakdown

RentRedi, award-winning property management software, partners with Chandan Economics, a leading economic advisory firm, to provide key insights into how independent landlords’ rental properties are performing by state.

Key Takeaways:

• Nationwide, the on-time payment rate fell to 85.2%, down 0.3 percentage points from May’s revised rate of 85.5%.
• Montana led in June 2025 with a 94% rate, followed closely by Utah and Hawaii at 92%, and Alaska, Idaho, Wyoming, Colorado, Arizona, and Washington at 91%.
• Connecticut, Mississippi, Delaware, Missouri, and Vermont showed the largest year-over-year losses, with Vermont down nearly 7 points year-over-year to 80%.

On-Time Payments Drop Further, Continuing Multi-Month Slide

As of June 2025, the national on-time payment rate continues to show signs of strain for independent landlords, according to the June 2025 Chandan Economics & RentRedi report on renter delinquencies. Nationwide, the on-time payment rate fell to 85.2%, down 0.3 percentage points from May’s revised rate of 85.5% as shown in Figure 1. This marks the third consecutive month of decline, adding to a gradual but steady erosion in on-time payment performance.

Figure 1

Rent prices continue to inch upward—the national average rent rose to $1,761, only a 1% increase year over year (Multihousing News). Affordability is tightening, and payment reliability is slipping.

Sun Belt Underperforms as Regional Disparities Widen

On-time payment performance can vary substantially from state-to-state and region-to-region as shown in Figure 2. The highest-performing state in June 2025 was Montana (94%), and the lowest was Mississippi (74%). 

Figure 2

Sun Belt states, a grouping of states that stretches across the southern and southwestern portions of the US, were once top performers but are now consistently bottom performers. Now, most appear below the national average, except for Arizona, Colorado, Oklahoma, and Utah.¹ 

Western States Continue to Lead

In contrast, states in the western half of the US maintain strong on-time payment performance:

• Montana: 94%
• Utah: 92%
• Hawaii: 92%
  

Alaska, Idaho, Wyoming, Colorado, Arizona, and Washington: all at or above 91%

Year-Over-Year Trends: A Mixed Bag 

Compared to June 2024, the national on-time payment rate is down 108 basis points, the steepest year-over-year decline since last August. This makes 23 consecutive months of year-over-year weakening.

Only a few states showed improvement over the past year, as shown in Figure 3. The largest were:

Figure 3

• Montana: +2.95 percentage points
• Mississippi: +2.09 percentage points
• Louisiana: +2.09 percentage points
• Maine: +2.00 percentage points
• Oklahoma: +1.99 percentage points
  

However, the largest losses were recorded in several areas:

• Vermont: –6.99 percentage points
• Kansas: –5.73 percentage points
• Missouri: –5.22 percentage points
• Massachusetts: –4.94 percentage points
• Arkansas: –4.62 percentage points
  

Final Thoughts for Landlords

The downward trend of on-time payment rates suggests rising financial pressure on tenants, as other economic indicators—such as credit card delinquencies—also increase. Seasonal patterns offered temporary relief during this year’s tax season, but overall performance will likely be linked to economic conditions in each state.

To stay ahead, landlords should:

• Monitor local rent collection trends carefully
• Engage tenants early when payments fall behind
• Leverage RentRedi tools like AutoPay, Credit Reporting, and Proactive Tenant Screening to drive rent payment consistency and proactively find tenants who are likely to meet the qualification requirements of your rental properties.

Because the data indicates some ongoing volatility in the rental market, staying proactive in managing your rentals properly is more important than ever.

• Learn more about RentRedi’s tools for rent collection: https://rentredi.com/rent-collection/
• For the full economic analysis, read the full report from Chandan Economics: Independent Landlord Rental Performance – June 2025

1. States including the Sun Belt can vary but we consider the Sun Belt to be Alabama, Arkansas, Arizona, Colorado, Florida, Georgia, Kansas, Louisiana, Mississippi, North Carolina, New Mexico, Nevada, Oklahoma, South Carolina, Tennessee, Texas, and Utah.