Titled "Nuuly", the monthly womenswear rental service is set to launch this summer.
According to the retailer, shoppers who sign up to become subscribers will receive a box containing six items of clothing every month.
Each box will cost $88 (£69), despite being valued at approximately $800 £632).
Every month, Nuuly subscribers will able to choose what items of clothing they are sent in their boxes.
They can then swap the clothing with new styles the following month, or choose to purchase certain items if they wish.
Richard Hayne, CEO and chairman of Urban Outfitters Inc., says the company's ethos since its conception has been to give customers "the creative, compelling shopping experience they desire".
"Nuuly is the next step in that mission, and with it, we set out to be the subscription fashion leader by offering an unmatched curation of aspirational brands, coupled with extraordinary value," Hayne states.
When Nuuly is launched in the summer, it will stock more than 1,000 styles.
The company plans to offer subscribers an additional 100 new styles every week, in sizes ranging from 00 to 26 (0 to 30 in UK sizes).
The range will also include petite and plus-size clothing.
Shoppers can sign up to join the Nuuly waiting list by visiting nuuly.com.
Earlier this year, it was reported that retailers may start blacklisting "serial returners" – shoppers who frequently buy clothes in bulk, wear them and then return several items.
According to research conducted by resource planning platform Brightpearl, which questioned more than 200 retailers across the UK about the issue, more than a third of shops saw an increase in serial returns in 2018.
Urban Outfitters has not confirmed whether a subscription service will be launched in the UK.