Where to rent car in Umbria with base in Assisi?

My personal choice would be no. 2, especially with a family of four with children and luggage. If you drive only automatic transmission, Rome is your best bet. Automatics are not popular in Italy (or Europe for that matter).

If you’d rather take the train closer to Assisi, and rent closer to your destination, I’d probably rent at Foligno. Trains to Assisi go Via Foligno. Perugia would take longer to get to. Europcar, Italy’s largest rental company, is in Foligno.

If you prefer Hertz, I don’t think they are in Foligno, but Hertz is in Spoleto, a little before Foligno on the same rail line.

To rent cars I use this consolidator:

www.autoeurope.com
or their sister company
www.kemwel.com
The two work the same way, but prices vary, so check both. They work with Europcar, Hertz, Avis-Budget.

I agree with number 2, because if your base is "outside Assisi" then you will have the expense of the train and still need the rental car all on the same day. Might as well skip the train and pick up the car the morning of your departure from Rome. (and for a fun ride, use the "no highways" option and take your time getting to Umbria, since your checkin is probably in the PM anyway, you can explore and have lunch along the way).

Number 2 as it saves you from extra steps and hassles.

Thank you! This was so helpful.
One more question.

Does anyone have a recommendation of where to rent a car in Rome in terms of location? Train station or airport (where I know we would pay more)? We are a family of four staying in Trastevere and returning to Rome but not flying out that same day. So looking for ease mostly! Thanks!

Again, if you need an automatic, Rome Termini or FCO are your best bet. Otherwise taxi to Tiburtina 15min. Under $20. Very easy access to the A1.