DALLAS—Some cities are known for being red-hot when it comes to apartment prices and rental demand, but how competitive are metros such as Dallas, Fort Worth and surroundings in terms of tenant credit requirements? A recent RentCafé study of prospective tenant credit scores from screening service RentGrow shows that Fort Worth has the most credit-worthy tenants in the region.

Rental applicants who were approved for a lease in Fort Worth this year had an average score of 654, the 20th highest in the nation and second highest in Texas after Austin (659). Rental applicants who were approved for a lease in Dallas had a lower average credit score of 634 and those in Arlington had a score of 610, on average.

Credit standards for future tenants tend to be higher in class-A buildings, of course. Renters approved for a lease in a class-A building in Fort Worth and Dallas in 2017 had a whopping average score of 686 and 685, respectively. In Arlington that number was 625. Class-B buildings tend to be less demanding in terms of credit requirements, naturally. The average score of those who were approved for rent in a class-B building in 2017 in Fort Worth was 636, while the score was only 597 in Dallas and 613 in Arlington in similar class buildings, according to the study.

Averages are affected by a series of factors, including the local job market and median incomes, which dictate the quality of tenants in the area, as well as the type and availability of apartment supply in each market, according to RentCafé, a division of Yardi Systems.

Nationwide, the average credit score of those approved for an apartment lease is on the increase, up 12 points since 2014 to hit 650 in 2017, according to rental applications submitted. Across building types, rental applicants approved for an apartment in 2017 had average scores that range from 683 in high-end buildings to only 624 in low-end buildings.

And of course, the generation of renters that is in the best credit shape is Baby Boomers, with the highest accepted average score of 683. Zooming in to the city level, two of the most expensive US hubs for renters led the way. Boston was the highest, with a 737 average credit score of approved applicants, followed by San Francisco with 724.

While it may not all boil down to a renter's credit score, this research shows there's a strong correlation between it and application approval rates.

Instant Insights /

Red-Hot Rental Markets Demand Higher Scores

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