Out of 575 metros tracked by Zillow's Observed Rent Index, only a handful saw rents actually decline from January 2025 to January 2026. The national average ticked up 1.4%. Most cities rose 2–5%. But these 20 markets went the other direction.

If you're looking for where rent is going down in America right now, this is the complete list — ranked from the biggest drop to the smallest.

See the full infographic: 20 Cities Where Rent Fell the Most in 2026

1. Rock Springs, WY — Down 7.2%

$1,088/mo → $1,009/mo (−$79)

The biggest rent drop in the country, and it's not even close. Rock Springs is a small energy-sector city in southwestern Wyoming that boomed during the latest oil and gas cycle and is now giving some of that back. When extraction activity slows, workers leave and rental demand evaporates. The $79/month drop brought rent back below $1,010 — still 25% higher than 2019.

2. Cape Coral, FL — Down 4.6%

$1,921/mo → $1,833/mo (−$88)

Cape Coral was one of the poster children for the pandemic rent surge — rents climbed over 60% from 2019 to the 2022 peak. The correction has been real but slow: down 4.6% in the last year, and still 46% above 2019 levels. New apartment construction in the broader Fort Myers metro has added supply, and the Florida insurance crisis has dampened migration to the region.

3. The Villages, FL — Down 3.7%

$1,721/mo → $1,658/mo (−$63)

America's largest retirement community saw rents pull back $63/month. The Villages exploded during the pandemic as retirees rushed to lock in Florida living, but the pace of inbound migration has slowed. Rising homeowner's insurance costs and hurricane risk are making Florida a harder sell for the retiree demographic that drives this market.

4. North Port, FL — Down 3.0%

$2,145/mo → $2,081/mo (−$64)

The Sarasota-area market that surged during the remote work migration. North Port rents are still up 47% from 2019 — the "correction" has barely dented the pandemic run-up. But the trend is clearly downward as new construction delivers units and the broader Southwest Florida market softens.

5. Kahului, HI — Down 3.0%

$3,642/mo → $3,533/mo (−$109)

Maui's main population center saw the largest dollar-amount drop on this list — $109/month. The decline follows the devastating Lahaina wildfires of 2023, which disrupted the island's tourism economy and displaced residents in ways that reshuffled housing demand across the island. At $3,533/month, Kahului remains one of the most expensive rental markets in America.

6. Stephenville, TX — Down 2.7%

$1,238/mo → $1,205/mo (−$33)

A small North Texas city (home of Tarleton State University) that's giving back some of its pandemic gains. The $33/month decrease is modest, but it bucks the trend in a state where most markets are still climbing.

7. Austin, TX — Down 2.6%

$1,603/mo → $1,561/mo (−$42)

The city that defined the rent correction narrative. Austin rents peaked at $1,786/month in 2022 and have been falling steadily since — now down 12.6% from that peak. The cause is straightforward: Austin permitted and built more apartments than almost any other major metro during the pandemic boom, and that supply is now hitting the market. At $1,561/month, rents are still 15% above 2019 levels, but the direction is clear.

8. Roswell, NM — Down 2.9%

$1,190/mo → $1,156/mo (−$34)

A small southeastern New Mexico city better known for UFO lore than housing data. Roswell's economy depends on oil and gas activity in the Permian Basin, and when energy slows, so does rental demand. The $34/month drop mirrors the Rock Springs dynamic — energy towns give back gains when the cycle turns.

9. Punta Gorda, FL — Down 2.4%

$1,873/mo → $1,827/mo (−$46)

Another Southwest Florida market in the same correction pattern as Cape Coral and North Port. Punta Gorda is a smaller, retiree-heavy market that surged during the pandemic and is now softening as Florida's insurance and climate headwinds slow inbound migration.

10. St. Marys, GA — Down 2.0%

$1,568/mo → $1,537/mo (−$31)

A small coastal Georgia city near the Florida border, home to Kings Bay Naval Submarine Base. Military housing markets are uniquely sensitive to deployment cycles and base activity. The $31/month decline likely reflects shifts in base-related demand rather than broader market forces.

11. Barre, VT — Down 1.7%

$1,511/mo → $1,485/mo (−$26)

One of only two Vermont cities on either list (Rutland is on the surging side). Barre's modest decline stands out in a state where rents have generally been climbing. The $26/month decrease may reflect some normalization after the severe flooding of 2023 that temporarily displaced residents and spiked demand.

12. Palatka, FL — Down 1.7%

$1,360/mo → $1,337/mo (−$23)

A small North Florida city between Jacksonville and Gainesville. Palatka is one of the more affordable Florida markets, and the slight decline suggests that even lower-cost Florida cities are feeling the statewide softening trend driven by insurance costs and oversupply.

13. Sherman, TX — Down 1.7%

$1,426/mo → $1,403/mo (−$23)

Sherman sits about an hour north of Dallas and saw significant growth as a commuter market during the pandemic. The slight pullback aligns with the broader Texas correction — particularly in markets that grew fastest during the remote work wave.

14. Bozeman, MT — Down 1.6%

$2,136/mo → $2,101/mo (−$35)

Bozeman was the most dramatic pandemic housing story in the Mountain West — home prices and rents surged as remote workers and out-of-state buyers flooded in. At $2,101/month, rents have barely budged from their highs. The 1.6% decline is more of a plateau than a correction. The market remains extremely expensive for a city of 60,000.

15. Sebastian, FL — Down 1.4%

$2,164/mo → $2,133/mo (−$31)

A Treasure Coast market between Melbourne and West Palm Beach. Sebastian is another Florida retiree destination seeing the same mild softening as the rest of the state — small decreases that barely register against the massive 2020–2023 run-up.

16. Talladega, AL — Down 1.4%

$1,228/mo → $1,210/mo (−$18)

One of only two non-Florida, non-Texas, non-Western cities on the declining list. Talladega's $18/month drop is small in absolute terms, but any decline in a market this size is notable. The city's economy is heavily tied to manufacturing and motorsports tourism — both of which have been steady but not booming.

17. Key West, FL — Down 1.3%

$3,558/mo → $3,513/mo (−$45)

Key West at $3,513/month is the second most expensive market on this list (behind Kahului). The $45/month decline barely registers for renters paying north of $42,000/year. Key West's rental market is structurally constrained — the island is only 4 miles long and almost nothing new gets built. Any softening is a demand story, not a supply story.

18. San Antonio, TX — Down 1.2%

$1,398/mo → $1,380/mo (−$18)

San Antonio is the largest city on the declining list by population. Like Austin, it benefited from pandemic-era migration to Texas and is now seeing some of that unwind. The $18/month decline is modest — San Antonio's correction has been gentler than Austin's because it never ran up as dramatically in the first place.

19. Tampa, FL — Down 1.2%

$2,011/mo → $1,986/mo (−$25)

Tampa breaking below $2,000/month is symbolic — the city surpassed that threshold during the pandemic boom and held it for over two years. The $25/month decline is small but represents a trend: Tampa's rent growth has stalled after years of double-digit increases. New apartment construction in the metro has finally started to catch up with demand.

20. Corsicana, TX — Down 1.1%

$1,419/mo → $1,403/mo (−$16)

A small city south of Dallas that rounds out the list with the smallest decline — $16/month. Corsicana grew as a Dallas commuter alternative during the pandemic and is now plateauing. The decline is barely distinguishable from flat, but it makes the list because so few cities are declining at all.

The Pattern

Florida dominates. Nine of the 20 cities with declining rents are in Florida — Cape Coral, The Villages, North Port, Punta Gorda, Palatka, Sebastian, Key West, and Tampa. The statewide softening is driven by three forces: new apartment construction delivering units, rising homeowner's insurance costs discouraging migration, and hurricane fatigue reducing the state's appeal as a pandemic-era destination.

Texas shows up five times — Austin, Stephenville, Sherman, San Antonio, and Corsicana. The Texas story is about supply: the state permitted more housing during the pandemic boom than almost anywhere else, and those units are now hitting the market.

Energy and resort towns round out the list — Rock Springs (oil and gas), Roswell (Permian Basin), Bozeman (mountain resort), Kahului (island tourism), Key West (island tourism). These markets are sensitive to specific economic cycles rather than broad housing trends.

The important context: even the biggest declines leave rents far above pre-pandemic levels. Rock Springs is down 7.2% from last year but still up 25% from 2019. Cape Coral is down 4.6% but still up 46%. Austin is down 2.6% but still up 15%. The "correction" is real, but it's a correction from extraordinary highs — not a return to anything resembling 2019 affordability.

See the opposite trend: 20 Cities Where Rent Surged the Most This Year. Track current national rent data on the Rent Index, or explore the full Rent by City — 2019 vs. 2026 breakdown.

Data: Zillow Observed Rent Index (ZORI), all homes plus multifamily, smoothed. January 2025 vs. January 2026 figures.