Rent-to-Own Traps: Why Military Families Should Walk Away

Rent-to-own stores like Rent-A-Center and Aaron's have stores specifically positioned near military bases. This is not coincidental — the military population is a profitable market for rent-to-own because of reliable incomes, frequent moves (which mean furniture needs), and a demographic that skews toward younger members with limited credit history.

Here's the math on what rent-to-own actually costs and what you should do instead.

What Rent-to-Own Is

In a rent-to-own arrangement, you make weekly or monthly rental payments for an item — furniture, electronics, appliances — with the option to own it after completing a specified number of payments. You can return the item at any time without further obligation.

This sounds flexible. The problem is the total cost.

The True Cost of Rent-to-Own

A flat-screen TV with a retail price of $600 at a rent-to-own store might have weekly payments of $20 over 78 weeks. Total cost: $1,560 — 2.6× the retail price for a product you could have purchased outright.

A sofa that retails for $800 might cost $35/week for 78 weeks: total $2,730. That's $1,930 more than the retail price.

The effective APR on rent-to-own contracts routinely exceeds 100%. In some documented cases, it approaches 200–300% when expressed as an annual rate.

Rent-to-own companies argue that their products aren't "loans" — they're rentals. This is technically correct, and it's why they're exempt from many state usury laws and the Truth in Lending Act's disclosure requirements. They don't have to show you an APR because legally it's not a loan.

Why the Military Lending Act Doesn't Help Here

The Military Lending Act, which caps interest at 36% MAPR for covered loan products to active duty members, does not cover rent-to-own contracts in most states. Because rent-to-own is structured as a lease rather than credit, it falls outside the MLA's definitions.

This gap in coverage means military families are fully exposed to rent-to-own pricing.

The PCS Trap

Rent-to-own is particularly damaging for military families during PCS moves. A service member who rents furniture and then PCS's has two options: return everything (losing all payments made toward ownership) or ship bulky rented furniture to a new location (which the contract may or may not allow, and which adds moving costs).

Many military families lose thousands of dollars in accumulated rent-to-own payments when a PCS forces a return.

What to Do Instead

Buy used furniture at the PCS departure installation. Facebook Marketplace, the base thrift store, and yard sales near military installations often have high-quality furniture being sold by departing service members. Prices are typically 30–70% below retail.

Use your installation's lending closet. Many Family Support Centers operate lending closets — free short-term borrowing of household goods while you're waiting for a PCS shipment. This eliminates the need for rent-to-own to cover the gap period.

Buy on credit cards you can pay off. Even a high-interest credit card at 24% APR is dramatically cheaper than rent-to-own at 100–200% effective APR. If you can pay it off in 3–4 months, the total interest cost is a fraction of rent-to-own total cost.

Military Emergency Relief programs. If you genuinely need household items and can't afford to buy them, the military emergency relief organizations (AER, NMCRS, AFAS, CGMA) provide interest-free loans and grants for exactly these situations.

MTT's Predatory Lender tool covers alternatives to rent-to-own by need category.

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Sources: CFPB rent-to-own research, FTC Rent-to-Own resources (ftc.gov), Military OneSource financial readiness