Multifamily Rent Growth Update: September 2026

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This analysis explores multifamily rent growth trends across the US using the Zillow Observed Rent Index (ZORI). All figures are seasonally adjusted and smoothed. Data are updated through August 2026.

National Rent Growth Trends

National multifamily rent growth strengthened again in August, with the improvement becoming increasingly visible across both headline growth rates and the breadth of markets participating.

National rents increased 2.2% year-over-year in August, up from 1.9% in July and 1.5% in June. Annual growth has now accelerated for five consecutive months following its March low, providing further evidence that the rental market has moved beyond the stabilization phase that characterized the beginning of the year.

Short-term momentum remained strong. Annualized month-over-month rent growth registered 4.2% in August, easing slightly from 4.4% in July but remaining near its strongest pace since early 2023. The modest pullback does little to change the broader trajectory: monthly momentum has strengthened sharply since the spring and is now increasingly filtering through to the annual growth rate.

Market breadth provided perhaps the clearest positive signal. In August, 74.6% of US metro areas recorded month-over-month rent gains, the highest share since March 2023. The share has either increased or effectively held steady in every month since February, pointing to a sustained broadening of rent growth rather than a one-month improvement. Meanwhile, 91.1% of metros posted year-over-year increases, up from 89.1% in July and the highest share since December 2024.

Overall, the August data point to a rental market where the recovery is becoming both stronger and broader. National rent growth remains moderate compared with earlier periods, but the combination of accelerating annual gains, elevated short-term momentum, and rising participation across metros suggests that supply-demand conditions are continuing to rebalance.

Metro-Level Performance

Metro-level performance remains highly uneven, though the gap between the strongest and weakest markets is becoming more nuanced as a growing number of former laggards begin to improve.

Annual rent growth continues to be led by Northern California and several markets across the Midwest and Northeast. San Francisco remained the clear national leader in August, with rents rising 11.7% year-over-year, followed by San Jose (8.0%), Virginia Beach (7.3%), Boise (6.9%), and Toledo (6.6%).

Top 5 Markets for Annual Multifamily Rent Growth through August 2026

San Francisco, CA: +11.7%

San Jose, CA: +8.0%

Virginia Beach, VA: +7.3%

Boise City, ID: +6.9%

Toledo, OH: +6.6%

At the other end of the spectrum, the weakest annual readings remain concentrated in several markets that experienced some of the most significant supply pressure earlier in the cycle.

Bottom 5 Markets for Annual Multifamily Rent Growth through August 2026

North Port, FL: −2.6%

San Antonio, TX: −2.5%

Cape Coral, FL: −2.1%

Denver, CO: −1.5%

Tampa, FL: −0.9%

Importantly, however, the annual rankings increasingly understate the improvement taking place in many of these lagging markets. Only 16 of the 100 largest metros were still posting year-over-year rent declines in August, and 14 of those 16 recorded positive month-over-month growth. Austin, Tampa, Denver, Dallas, Houston, Nashville, Orlando, North Port, San Antonio, and Cape Coral are all examples of markets where annual rents remain negative but current momentum has turned positive. That does not mean every laggard is poised for an immediate recovery, but it suggests that the weakest annual readings are increasingly reflecting earlier softness rather than continued deterioration.

Monthly performance also shows that stronger momentum is extending well beyond a handful of markets. Twenty of the 100 largest metros posted month-over-month rent gains above 0.5% in August, equivalent to an annualized pace of more than 6% if sustained. Those markets span multiple regions, indicating that the recent acceleration is not simply being driven by one geographic cluster.

Short-term growth remained strongest in San Francisco, where rents increased 1.6% during August, followed by San Jose (1.0%), Boise (0.9%), Virginia Beach (0.9%), and Scranton (0.8%).

Top 5 Markets for Monthly Multifamily Rent Growth through August 2026

San Francisco, CA: +1.6%

San Jose, CA: +1.0%

Boise City, ID: +0.9%

Virginia Beach, VA: +0.9%

Scranton, PA: +0.8%

Bottom 5 Markets for Monthly Multifamily Rent Growth through August 2026

Provo, UT: −0.4%

Little Rock, AR: −0.4%

Urban Honolulu, HI: −0.2%

Omaha, NE: −0.2%

Worcester, MA: −0.1%

The broader geographic pattern still favors Northern California, the Midwest, and much of the Northeast, but the monthly data increasingly show improvement spreading into markets that remain weak on a trailing annual basis. That distinction between current momentum and year-over-year performance is becoming one of the clearest features of the market in 2026.

The Bottom Line

The August data strengthen the case that multifamily rent growth is now in a broader reacceleration. Annual rent growth has improved for five consecutive months, nearly three-quarters of US metros are posting monthly gains, and more than nine in ten are now seeing rents rise from a year earlier.

The improvement is also becoming more visible beneath the national average. Many of the markets that remain weakest year-over-year are already showing positive monthly momentum, while a sizable group of major metros are posting monthly gains consistent with annualized growth well above the current national pace.

The backdrop remains important but secondary to the rent data themselves. The post-pandemic supply wave is gradually being absorbed, helping supply-demand conditions move toward better balance, while elevated mortgage rates continue to support rental demand at the margin by making homeownership less attainable for some households. At the same time, stronger operating fundamentals are developing against a still-challenging capital-markets environment, where higher required returns continue to pressure apartment valuations. For the rental market itself, however, the direction of travel is increasingly clear: rent growth is strengthening, broadening, and reaching more markets than at any point in the past several years.

Appendix: Data Table