More Renters Self-Reporting Payments As FHFA Opens Pathway To Homeownership – NMP Skip to main content

More Renters Self-Reporting Payments As FHFA Opens Pathway To Homeownership

Sep 11, 2025
for rent

TransUnion finds renters increasingly turning to third-party tools to boost credit profiles

A growing number of renters are taking credit-building into their own hands. 

According to a new TransUnion report, 13% of consumers have had their rent payments reported to credit bureaus this year, up from 11% in 2024, representing about an 18% lift. The rise comes even as property manager participation in rent payment reporting declined, suggesting that more consumers are self-reporting through third-party data furnishers.

The development coincides with a major regulatory shift. In July, the Federal Housing Finance Agency (FHFA) ordered Fannie Mae and Freddie Mac to begin accepting VantageScore 4.0 credit scores for mortgage underwriting. That move allows rent payment history to count toward mortgage qualification, potentially unlocking homeownership opportunities for many first-time buyers.

“The regulatory developments we’ve seen in this space are very encouraging,” said Maitri Johnson, SVP and head of TransUnion’s tenant and employment screening business. “The vast majority of renters reliably make on-time payments and they deserve to leverage that proven responsibility toward home ownership and other financial opportunities.”

Property Manager Participation Slips

While renter participation ticked up, TransUnion found property managers pulling back. Just 44% reported rent payments in 2025, down from 48% last year. The reversal follows several years of steady (and notable) gains — from 27% in 2022 to 48% in 2024.

“Rent payment reporting is well documented as a means to improving credit scores and financial inclusion, so I’m happy to see that more consumers are empowered to participate,” Johnson stated. “We hope the new FHFA policy will help increase the number of consumers opting in for rent payment reporting.”

The report also shows that rent reporting is a marketable amenity. More than half of renters (57%) said they are more likely to rent from a property manager who reports payments, and nearly 80% said they are more likely to pay on time when reporting is in place.

Generational Trends

Most generations saw increases in rent reporting, except Gen Z. Participation among the youngest cohort declined from 26% in 2024 to 18% in 2025. Still, Gen Z remains the most engaged generation and may benefit most, given their limited credit history. Nearly 80% of Gen Z renters reported seeing a credit score boost tied to rent reporting.

“The decreased participation from Gen Z was surprising, considering they likely do not have enough credit built yet,” Johnson noted. “With rent payments now [potentially] being considered as a qualifier for mortgages, many Gen Z consumers may be better positioned to achieve homeownership at an earlier age than they otherwise would.”
 

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Sep 11, 2025
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