Cost-Burdened Renters and Pet Fees: What the Data Shows

The Harvard Joint Center for Housing Studies confirmed what many operators already feel on the ground. In 2024, 22.7 million renter households were cost-burdened. That is 49% of all U.S. renters spending more than 30% of their income on housing, a record high for the fourth consecutive year.

The pressure is no longer limited to low-income households. The share of cost-burdened renters earning $45,000 to $74,999 jumped 9.5 percentage points since 2019. Even renters earning $75,000 or more saw their burden rate rise by 4.1 percentage points over the same period. Between 2019 and 2024, renter housing costs rose 38% while incomes rose only 28%.

Now add pet fees on top of that.

How Do Pet Fees Affect Already-Stretched Renters?

58% of renter households now own a pet, according to Zillow’s 2025 Consumer Housing Trends Report. For a household already spending more than 30% of its income on rent, non-refundable pet fees, monthly pet rent, and large upfront deposits are not minor expenses. They can push an already strained budget past the breaking point.

When the cost of keeping a pet in housing becomes too high, renters look for workarounds. ESA registrations have climbed 50% over five years, according to ESA Pet. OurPetPolicy, after reviewing thousands of accommodation requests, flags between 50% and 70% of submitted ESA letters as fraudulent. The financial motivation is straightforward: a tenant presenting an ESA letter, legitimate or not, bypasses all pet fees entirely.

That is lost revenue for operators, and it is a problem that restrictive pet policies and excessive fees are helping to create.

What the ESA Workaround Costs Operators

The table below shows the direct business impact of how pet fee structures affect operator outcomes.

Policy Type	Likely Renter Response	Operator Impact
High non-refundable fees + breed/weight limits	Applicant moves on or submits fraudulent ESA	Lost applicant pool, lost pet revenue
Refundable deposits + transparent monthly pet rent	Renter stays, discloses pet honestly	Retained revenue, longer tenancy
Inclusive policy with structured pet management	Expanded applicant pool, lower fraud risk	30.7% revenue increase (PetScreening 2026)

Renters with pets stay up to 21% longer on average, according to PIHI’s 2025 Outlook report. That reduction in turnover has a direct effect on net operating income. Properties that are forcing pet-owning residents out through excessive fees are spending more on vacancy and leasing than they are protecting through pet restrictions.

Why Fair Pet Pricing Is a Business Decision

Properties moving toward transparent fee structures, refundable deposits, and reasonable monthly pet rent are seeing stronger retention and a wider applicant pool. Colorado already caps pet deposits at $300 and monthly pet rent at $35 or 1.5% of rent, whichever is greater. Washington, D.C.’s Roscoe’s Law limits pet fees further and bans breed discrimination from October 2026.

The regulatory direction and the market data are aligned. Excessive pet fees do not protect revenue. They suppress it.

Conclusion:

When it comes to residents with pets, they do not prefer giving up on a property where their pet is comfortable. It is usually a difficult experience for their pet to adapt to a new place and environment. As a result, pet parents are often loyal to their properties and prefer to stay there long term. This reduces the uncertainty of units without a lease and can end up creating consistent revenue for property owners and managers.

Frequently Asked Questions

How many renters are cost-burdened in the U.S. right now?

22.7 million renter households in 2024, or 49% of all renters, spent more than 30% of their income on housing, a record high for the fourth consecutive year, according to Harvard JCHS.

Why are ESA requests increasing in rental housing?

ESA registrations have climbed 50% over five years (ESA Pet). Industry research links much of this growth to renters trying to avoid pet fees and breed restrictions rather than legitimate accommodation needs.

What percentage of ESA letters are flagged as fraudulent?

OurPetPolicy flags between 50% and 70% of ESA letters as not meeting federal guidelines after reviewing thousands of submitted requests.

Do pet fees hurt retention?

Restrictive fees drive renters with pets to seek alternatives. Properties with transparent, fair pet pricing retain pet-owning residents who stay up to 21% longer than non-pet owners (PIHI, 2025).

What states have already capped pet fees in rentals?

Colorado capped pet deposits at $300 and monthly pet rent at $35 or 1.5% of rent since January 2024. Washington D.C. implemented pet rent caps effective October 2025, with breed and size discrimination bans following in October 2026.