Avail's 2026 survey reveals that 18% of landlords are holding rents steady despite inflationary pressures and rising property costs. These owners are deliberately choosing not to increase rates, betting on long-term tenant retention and portfolio stability over short-term revenue gains.
The strategy reflects a shift in landlord thinking. Keeping rents flat preserves tenant relationships, reduces turnover costs, and maintains occupancy rates in a competitive rental market. Replacing a tenant typically costs $500 to $2,000 in advertising, screening, vacancy losses, and repairs. A stable tenant paying below-market rent often costs less than the friction of turnover.
However, this approach demands financial discipline. Property taxes, insurance, maintenance, and utilities have all climbed since 2022. Landlords choosing the flat-rent path must absorb these increases or cut corners on upkeep, which creates long-term liabilities. Some are offsetting losses by purchasing additional properties or relying on existing equity to weather the squeeze.
For tenants, this news is mixed. Those locked into flat-rent arrangements enjoy payment stability and avoid displacement. But this benefits only the 18%. The remaining 82% of landlords are raising rents, sometimes aggressively. Markets with tight supply and high demand have seen 5-10% annual increases become routine. Tenants in those markets face harder choices about relocation or budget cuts.
For sellers, flat-rent properties present valuation challenges. Buyers price rental income growth into offers. A property generating static revenue commands a lower multiple than one with built-in rent increases. Conversely, buyers seeking stable cash flow without tenant churn may pay premiums for well-maintained, long-tenant properties.
The decision to raise rents depends on local conditions. In oversupplied markets like parts of the Sun Belt, flat rents retain ten