Most housing providers are familiar with the FICO® credit score, developed by Fair Isaac Corporation. It has long been the standard tool for evaluating an applicant’s creditworthiness. However, newer scoring models do exist, such as AOA’s TenantRisk Score from TransUnion. These newer credit scoring models are gaining traction, particularly as screening priorities shift and costs change.
As we move through 2026, pricing differences between credit report options have become more pronounced. The cost of FICO-based reports has increased dramatically this year, while other credit score models have not seen the same inflation. With AOA Tenant Screening, the cost of a FICO score is now $2.00 more than the TenantRisk credit report, which leaves housing providers asking: Can I get away with using the cheaper score? If I do, how is it different from the FICO?
Two Models, Two Different Objectives
Although both scoring models rely on similar underlying credit data, they are designed for different purposes.
The FICO Score was built to predict the likelihood that a borrower will default on a loan. In contrast, the TenantRisk Score is designed to predict rental-specific outcomes, such as eviction risk or late payment. This distinction is critical. While the data may be the same, the interpretation and the weighting of that data vary significantly. Below, you’ll find a description of the two credit scoring models, along with an analysis of the key differences.
Understanding the FICO Model
The FICO Score is structured around a relatively concentrated set of factors. Payment history carries the greatest weight, accounting for 35% of the score. This includes late payments, collections, and more serious derogatory events such as bankruptcies.
The second largest factor, at 30%, is amounts owed, commonly referred to as credit utilization. This measures how much of a person’s available credit is currently in use, with a strong emphasis on revolving accounts like credit cards.
The remaining components include length of credit history (15%), credit mix (10%), and new credit inquiries (10%).
Taken together, payment history and utilization alone make up 65% of the FICO Score. This reflects its primary purpose: evaluating long-term credit risk from a lending perspective.
A Rental-Focused Approach: TenantRisk
The TenantRisk Score takes a broader, more behavior-based approach. While it still considers traditional credit factors such as delinquency and utilization, it places greater emphasis on stability and recent activity of various types.
For example, inquiries account for 21.7% of the TenantRisk Score — more than double their weight in the FICO model. According to data from TransUnion, frequent recent inquiries can be a leading indicator of financial stress, which may translate into rental risk.
Another key differentiator is the inclusion of address and phone number stability, weighted at 14.1%. This factor evaluates how often an applicant changes their contact information. In a rental context, frequent changes may suggest instability or difficulty maintaining consistent housing.
Additional factors include top-of-wallet usage, age of credit, credit limits and balances, utilization, and the number of accounts. Rather than concentrating risk in a few categories, TenantRisk distributes weight across multiple dimensions to create a more comprehensive behavioral profile. One side benefit of this approach is that the TenantRisk model can generate a credit score with a thinner credit profile.
Key Differences That Matter
The contrast between these two models becomes clearer when viewed through the lens of rental housing. First, TenantRisk places a much stronger emphasis on recent behavior. A sudden increase in credit inquiries may not heavily impact a FICO Score, but it can significantly influence a TenantRisk Score. For housing providers, this “recent risk” perspective can offer valuable insight into an applicant’s current financial situation.
Second, TenantRisk introduces stability as a measurable factor. While FICO focuses strictly on financial accounts, TenantRisk considers real-world behaviors, such as how often a person moves or changes contact information, that may be directly relevant to tenancy.
Third, the models differ in how they treat debt. FICO assigns substantial weight to credit utilization, reflecting the priorities of lenders. TenantRisk, on the other hand, treats debt as a secondary factor, placing greater importance on payment behavior and stability.
Finally, there is a structural difference in how risk is distributed. FICO is highly concentrated, while TenantRisk is more diversified. This allows TenantRisk to capture a wider range of behaviors that may influence rental behavior.
Making an Informed Decision
There is no single “right” scoring model for every housing provider. I liken it to inches and feet vs the metric system. Each offers a different perspective, and the best choice depends on your prior experience, ability to understand how the credit scores work, and your willingness to try something new or stick with what has worked for you for decades.
For those who prefer a long-established, widely recognized model, FICO remains a strong option. Its focus on long-term credit behavior aligns well with traditional lending practices. Debt and credit history are time-proven indicators of payment behavior.
For housing providers who want deeper insight into recent activity and rental-specific risk factors, TenantRisk may offer a meaningful advantage.
Ultimately, the goal is not to replace one model with another, but to understand how each works and use that knowledge to make a more informed decision regarding which credit scoring model to use. AOA will continue to offer both types of credit scores because we recognize that there are two groups of loyal members who strongly believe in one or the other.
Score Ranges and Rental Screening Guidelines
While understanding how each scoring model works is important, housing providers ultimately need practical benchmarks for decision-making. Credit scores are most useful when paired with clearly defined screening criteria.
The following ranges represent commonly used guidelines in rental housing. However, it is important to note that “typical actions” may not align with every property type, market, or risk tolerance. Housing providers should always apply their own written criteria consistently.
FICO & TenantRisk Score: Typical Screening Interpretation
| Score Type | Score Range | Interpretation | Typical Action |
| FICO | 750-850 | Excellent | Accept |
| FICO | 700-749 | Good | Accept |
| FICO | 650-699 | Fair | Conditional Approval |
| FICO | 600-649 | Poor | Conditional / Higher Deposit or Co-Signer |
| FICO | Below 600 | High Risk | Decline |
| TenantRisk Score | 700-850 | Low Rental Risk | Accept |
| TenantRisk Score | 650-699 | Moderate Risk | Accept or Conditional |
| TenantRisk Score | 600-649 | Elevated Risk | Conditional Approval |
| TenantRisk Score | 550-599 | High Risk | Conditional or Decline |
| TenantRisk Score | Below 550 | Severe Risk | Decline |
One question that I often get is, “What credit score should I set as my minimum requirement?” Even property managers with hundreds of units have asked me this. In an exclusive AOA video, AOA interviewed three different professional property management companies and asked how they set their credit criteria. You can view that video by logging into your AOA member account, navigating to the “Videos” section, and clicking on the thumbnail titled “Exclusive Interviews: Rental Requirements from Property Management Experts.”
AOA will continue to offer both types of credit scores
because we recognize that there are two groups of loyal
members who strongly believe in one or the other.
Below, you’ll find a chart that organizes property classifications, score types, and decision criteria commonly used in the rental housing industry. Keep in mind that Section 8 voucher recipients may opt out of using their credit score and instead provide alternative verifiable proof of ability to pay.
| Property Class | FICO Accept | FICO Conditional | FICO Decline |
| Class-A | 700+ | 660–699 | Below 660 |
| Class-B | 680+ | 650–679 | Below 650 |
| Class-C | 650+ | 600–649 | Below 600 |
| ResidentScore Accept | ResidentScore Conditional | ResidentScore Decline | |
| Class-A | 700+ | 650–699 | Below 650 |
| Class-B | 680+ | 620–679 | Below 620 |
| Class-C | 650+ | 580–649 | Below 580 |
Conclusion
In conclusion, keep in mind that this article is hyper-focused on the credit score. There are multiple criteria that should be thoughtfully considered when setting your rental requirements for applicants. Please see AOA Form 100Q for a list of criteria. As the chart above shows, criteria are typically set based on property class and location. The higher your requirements, the longer it may take to lease the property. The lower your requirements, the higher your chances of ending up with a problematic tenant.
For more information about tenant screening, please log in to your AOA account and explore the videos available exclusively to members. Additionally, visit our YouTube channel, AOAUSA, and search for more helpful tenant screening-related content.
List of AOA Videos Related to Tenant Screening:
Rental Requirements from Property Management Experts – (a panel sharing rental criteria across different areas and property classes. *Exclusive member-only video)
FICO vs. TenantRisk Score: What Housing Providers Need to Know – (compare and contrast of the two credit scoring models)
Tenant Screening Crash Course – (which AOA forms to use, state requirements, etc.)
A Faster Way to Verify Bank Statements (Third-party software that saves time, reduces paperwork, verifies ID, and confirms income by showing deposits into applicant bank accounts)
Tenant Screening: Urgent Updates to California Criminal Reports – (California Clean Slate Act – SB 731, expanded automatic sealing of records, and how to lawfully obtain needed data)
Avoiding the Nightmare Tenant – (walkthrough of the tenant screening process) – This will be the next in-person seminar in San Jose and Alameda in April
How to Lawfully Deny Applicants with Criminal Records – (HUD individualized assessment protocol *Exclusive member-only video)
Jeff Faller is President of the Apartment Owners Association of California, Inc.
Jeff grew up in the apartment industry and currently serves as the President of the Apartment Owners Association of California, Inc. (AOA). He holds a degree in Business Administration and made history as the first American to establish a wholly foreign-owned company in one of the world’s most restricted communist countries. His work abroad focused on providing services that help people generate wealth through sustainable business practices. Today, he continues the legacy of his father, Dan Faller, by leading AOA and advocating for California housing providers, property owners, and real estate investors.
Founded in 1977, the Apartment Owners Association of California (AOA) is California’s largest membership organization for rental property owners, representing over 20,000 members and more than 100,000 housing providers statewide. AOA provides practical tools, education, and advocacy to support rental property owners across California.