Sometimes. In August 2026, 39.2% of rental listings on Zillow offered a concession, so a free month is now normal in many US markets. On a 12-month lease, one free month costs the same as one vacant month. It pays only when it fills the unit at least a month sooner than holding firm would.
How common are rent concessions in 2026?
More common than at any point in recent memory. Zillow reported in May 2026 that 39.8% of its rental listings offered a concession that spring, a record for the time of year. A year earlier it was roughly 1 in 3. Before the pandemic it was closer to 1 in 6. The August 2026 figure was 39.2%, still 2.5 points above the year before.
The national number hides a wide range. In Zillow's June report, 67.1% of listings in Charlotte, 65.9% in Denver and 64.6% in Dallas came with a deal. In New York it was 17.2%, in Providence 11.4% and in Buffalo 10.1%. Zillow's definition is broad: commonly a free month, waived fees or free parking.
Canada is moving the same way, from a tighter starting point. CMHC's 2025 Rental Market Report put the national purpose-built vacancy rate at 3.1%, up from 2.2% in 2024, with Vancouver at 3.7%, its highest since 1988. CMHC said operators responded with a month of free rent, moving allowances and signing bonuses.
What does a free month actually cost?
One twelfth of the lease, or about 8.3% of a year's rent. That is exactly what one extra vacant month costs, which gives you a clean test. If the free month gets the unit leased four or more weeks sooner than holding firm would, it roughly pays for itself. If the unit would have leased in ten days anyway, you gave away a month to save ten days.
Compared with cutting the asking rent, a concession has one real advantage: the lease still shows the full rent. Next year's renewal starts from that number, not from a discounted one. A rent cut is cheaper per month but follows the unit into every renewal.
Spread it, or front-load it? A free first month helps the renter most with move-in costs. Spreading the same amount across the lease keeps cash flow even and lowers the cost if the tenant breaks the lease early. Pick one and write it into the lease terms plainly.
When does a concession make sense?
When your local market expects one. In a metro where two thirds of listings carry a deal, a unit without one looks overpriced next to its neighbours, even at the same rent. In a metro where one listing in ten has a deal, a free month is money left on the table.
Check three things before you offer one. First, the share of comparable listings near you that carry a concession. Second, your own days on market against the local norm. Third, how many inquiries the unit is actually getting. If inquiries are steady but nobody is signing, the problem is usually follow-up, not price. Our guide to pricing a vacant unit covers the rent side.
How should you advertise a concession?
Up front, with the terms spelled out. In Zillow's May 2026 release, nearly 6 in 10 renters said seeing fees and lease terms upfront is essential, and more than half said a private tour is a must before signing. Put the offer in the listing headline, state exactly what it is and when it applies, and give an expiry date so it creates urgency instead of waiting.
Then answer fast. A concession raises inquiry volume, and every one of those renters is comparing your unit with the others offering deals. LetHub answers rental inquiries in about 30 seconds by text, chat and phone, around the clock, and books the showing, including ID-verified self-showings, in the same conversation. Book a demo to see it on your listings.
Rent concessions: FAQ
What percentage of rentals offer concessions in 2026?
About 39%. Zillow reported that 39.2% of its US rental listings offered a concession in August 2026, up 2.5 points from a year earlier. The spring figure, 39.8%, was a record for that time of year. Before the pandemic the share was closer to one listing in six.
Is a free month better than lowering the rent?
Often, for the landlord. A free month costs about 8.3% of a 12-month lease but keeps the full rent on the lease, so the renewal starts from the higher number. A rent cut costs less each month but carries into every future renewal. The right choice depends on how long you expect the tenant to stay.
Which US cities have the most rent concessions?
Markets with heavy new apartment construction. In Zillow's June 2026 report, Charlotte led at 67.1% of listings, followed by Denver at 65.9% and Dallas at 64.6%. Concessions were least common in Buffalo at 10.1%, Providence at 11.4% and New York at 17.2%, where demand still outpaces supply.
Are Canadian landlords offering free rent?
Some are. CMHC's 2025 Rental Market Report found the national purpose-built vacancy rate rose to 3.1% from 2.2% in 2024, and Vancouver hit 3.7%, its highest since 1988. CMHC said operators responded with incentives such as a month of free rent, moving allowances and signing bonuses.
