Tenant self-reporting grows as GSEs add rent-based score

Tenant interest in rent reporting has grown since the Federal Housing Finance Agency reaffirmed plans to include those payments in mortgage credit decisions.

Instances of self-reported rent are up so far in 2025, at 13% compared to 11% in 2024, according to credit bureau TransUnion. That could help increase the use of a credit score that incorporates rent, VantageScore, as two quasi-public loan buyers the agency oversees adopt it.

VantageScore's wider adoption may hinge on whether gains in tenant reporting can outweigh declines among landlords and Gen Z.

"We hope the new FHFA policy will help increase the number of consumers opting for rent payment reporting," said Maitri Johnson, senior vice president and head of TransUnion's tenant and employment screening business, in a press release.

Segments where rent reporting is declining

While all other age groups reported gains, Gen Z's participation rate scaled back a bit this year from 26% to 18%. But the youngest cohort still outpaces millennials' 16% participation rate, Gen X's 12% and the Baby Boomers' 8%. The average participation rate for all age groups combined was 13%.

"The decreased participation from Gen Z was surprising considering they likely do not have enough credit built yet," said Johnson. "With rent payments now 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."

Rent reporting improved 80% of Gen Z's credit scores, compared to 88% for millennials, Gen X's 75% and Boomers' 70%, giving all generations incentives to report. The average for all combined was 79%.

Landlords, who have been reporting rent at a higher rate than tenants, decreased their reporting share to 48% to 44% for the first time in the four year report's history.

"The sudden decrease in property managers' participation and the slight rise in consumers who say their payments are reported suggests that consumers may be self-reporting their rent payments through third-party data furnishers," according to TransUnion.

Property owners otherwise have incentives for high participation rates because 57% of tenants have shown a preference for landlords who report, and almost 80% of renters have an increased likelihood of making timely payments when they're being tracked.

State support for rent reporting

Fannie Mae and Freddie Mac's oversight agency hasn't been the only government-related entity to support rent reporting, TransUnion noted.

The Department of Housing and Urban Development issued a FAQ on the topic early this year to provide guidance.

A new California law requires landlords to offer positive rent reporting to TransUnion and other major credit bureaus, which collectively back a new score Fannie and Freddie are adding.

Also a now-concluded rent reporting pilot in Colorado has given rise to a state housing finance agency partnership with a company called Esusu that supports rent reporting in HFA properties. Esusu also has supported rent reporting at Freddie and Fannie Mae.

In addition, New York City launched a rent reporting pilot earlier this year.

"The regulatory developments we've seen in this space are very encouraging," Johnson said.