Housing and household costs
One Month Free, $2,200 Advertised: Why Your Rent Payment Could Still Be $2,400
An apartment advertised at $2,200 a month might require $2,400 in each month you actually pay rent. The advertised number may spread a one-month concession across the whole lease, while the contract gives you the credit in one specific month.
Before comparing offers, separate three numbers: the rent due on each payment date, the total rent over the lease, and the total cost after mandatory nonrefundable charges.
Why rental incentives deserve a closer look
Zillow’s September rental report, published October 15, found that 39.6% of rental listings on its platform offered concessions. This describes Zillow listings, not every U.S. rental. Concessions can take different forms; the percentage does not mean all those listings offered a free month.
A discount can reduce the cost of a lease. Its advertised monthly average alone does not tell you when the savings arrive or what your checking account must cover.
A $2,200 average can coexist with $2,400 payments
Consider a hypothetical 12-month lease with $2,400 base monthly rent and one full month of rent waived. Assume the credit applies entirely to one month, with no other charges in this first calculation.
Total rent = $2,400 × 11 = $26,400
Net effective monthly rent = $26,400 ÷ 12 = $2,200
The average is $2,200. The payment schedule is eleven $2,400 payments and one month with no rent due. Budgeting only $2,200 in a charged month leaves a $200 gap unless you have already reserved money to cover it.
Some leases spread the credit across payments instead. Ask for the written schedule: which months receive the credit, what is due each month, and what conditions apply. Do not assume the free month is the first month.
Compare the entire term, including extra charges
Now compare that lease with a second hypothetical offer charging $2,250 every month, without a free month. Both last 12 months.
| Comparison | Offer A: one month free | Offer B: no free month |
|---|---|---|
| Base monthly rent | $2,400 | $2,250 |
| Months charged | 11 | 12 |
| Total rent | $26,400 | $27,000 |
| Average monthly rent | $2,200 | $2,250 |
On rent alone, A costs $600 less. But suppose A also requires $900 more in mandatory nonrefundable charges than B over the same period. A then costs $27,300 on this comparison basis, versus B’s $27,000: A is $300 more expensive.
The $900 is the difference between the offers’ charges. It is not permission to count every fee for A while ignoring B’s fees. Costs identical on both sides cancel when finding the difference; include them in both totals when estimating the full budget.
These are invented offers, not available listings or a claim that the properties are equivalent. Compare location, condition, lease terms and services as well as price.
Keep refundable deposits separate
A refundable security deposit is money you must provide, but it is not automatically a nonrefundable expense. Record it separately as cash required and note that any eventual return depends on the lease and applicable rules.
For a usable comparison, list rent, mandatory recurring and one-time nonrefundable charges, refundable deposits, and other costs that differ between properties. Utilities, parking and moving costs can change the result. Check whether leaving early or another event can require repayment of a concession.
Renewal can cost more without a higher base rent
Suppose A renews for another 12 months at the same $2,400 base rent, but the free month is not offered again. Rent would total $28,800 rather than $26,400: $2,400 more, or about 9.1% above the first year’s rent total.
That is a hypothetical loss of a discount, not a forecast or a 9.1% increase in the contractual base rent. Actual renewal terms can differ. Redfin’s concession explainer also discusses the importance of considering renewal costs.
Before signing, reconcile the advertised figure with the written payment schedule and full-term charges. Then check whether each payment fits your actual income dates. A lower average helps only if you can also manage the required payments.
Our savings and loan calculators do not model lease concessions or rental fees. For money reserved for moving separately from emergency savings, see emergency funds versus sinking funds.