NEW YORK — Rent can eat up an entire paycheck at the start of the month, so a growing number of renters are turning to a financial product that promises relief by letting them split the bill — for a price.

So-called “rent now, pay later” services have emerged over the past few years as housing costs climb and paychecks grow less predictable, particularly for lower-income and gig-economy workers. According to the Bureau of Labor Statistics, rents have jumped nearly 28% in past five years.

Companies such as Flex, Livble and, more recently, Affirm, say breaking rent into multiple payments can help renters manage cash flow. But consumer advocates warn the products typically function like short-term loans, layering fees onto already strained budgets and, in some cases, carrying triple-digit effective interest rates — raising questions about whether they ease financial pressure or deepen it.

Roughly 109 million Americans, or about 42.5 million households, are renters in the United States. The Census Bureau estimated in 2024 that a large share of those households pay 30% or more of their monthly income on rent. The bureau considers such households to be “cost burdened,” meaning rent consumes so much of their income that they have less ability to plan for future expenses or build wealth.

Rent now, pay later services generally operate the same way: The company pays the landlord the full rent when due, and the renter repays the company in two or more installments over the course of the month.