Since you may PCS (receive a permanent change of station) every two to four years in the military, it’s important to consider many factors when deciding on whether to rent or buy a home. In this article, USAA Bank breaks down what you need to know about military housing and VA loans.
Key Takeaways
- Military housing may be available for active duty servicemembers who want to live on base.
- Servicemembers may choose to rent to keep costs down and accommodate frequent moving needs.
- Servicemembers and veterans are often eligible for VA home loans, which can help make buying a home more affordable.
- If you’re a servicemember trying to decide whether to rent or buy a home, you can speak with a USAA Bank Loan Officer to learn more about your homebuying options.
What is military housing?
The Military Housing Privatization Initiative (MHPI) was enacted under the National Defense Authorization Act on February 10, 1996, to provide affordable, quality housing for military servicemembers. This is intended to ensure that military housing is regularly updated and modernized as well as maintains affordability. There are various types of military housing. Military housing availability may vary depending on your military branch and the base or location where you’re stationed. There are also different types of military housing based on whether you are single or have a family.
A Department of Defense (DOD) report from 2023 shows approximately one-third of servicemembers live on base.
BAH (Basic Allowance for Housing)
If there’s no military housing available for you, or you choose to live off base, you may be eligible for a BAH (Basic Allowance for Housing). The amount you receive will usually depend on your location, rank, and if you have dependents. According to the Defense Travel Management Office (part of the U.S. Department of Defense) website, “BAH is a fundamental component of the military pay package designed to offset housing costs for Servicemembers renting off-base on the local market economy”. By law, BAH is determined on “the costs of adequate housing for civilians with comparable income levels [to military servicemembers] in the same area.” There is a BAH calculator available here.
Army military housing
In the Army, after you complete your initial training, like Basic Combat Training or the Basic Officer Leadership Course (BOLC), there is on-base military housing for both single soldiers and families. The U.S. Army has a website (AHOUS – Army Housing Online User Services) dedicated to helping soldiers and families look for information regarding Army Family Housing (Privatized & Government Owned), Unaccompanied Housing (UH), or Off-Post Housing.
Navy military housing
The Navy’s housing program is known as the CNIC (Commander Navy Installations Command) Navy Housing Program. It has Navy Housing Service Centers (HSCs) at most Navy installations worldwide.
Air Force housing
Many Air Force bases provide communities that have full-size homes in residential areas for Airmen and their families. For those who are authorized to live off base, you’ll receive a BAH that can be used to pay for off-base housing. Air Force BAH amounts depend on rank, location, and need.
Marine Corps Housing
Most Marine bases have barracks and family housing options like the other branches. Availability will vary, so you may still live off base if approved to do so.
National Guard housing
The National Guard and Army Reserves represent 36% of military servicemembers today. Unlike other branches of the military, Guardsmen and Army Reservists don’t usually have to deal with moves as often. However, full-time members of the National Guard may be eligible for and be able to live in military housing.
Military housing availability
Servicemembers are facing an interesting situation – many bases across the country have long waiting lists for military housing. It’s not uncommon to see waitlists ranging from a few weeks, and up to a year or more for large homes, senior ranks, or highly desireable neighborhoods. This means that you could be waiting the entire time you’re stationed there and may PCS (getting your permanent service change orders) before there’s even space available. This means you need to decide whether to rent or buy. Rental markets may also be challenging with high rental rates and limited availability. It is recommended to check with your installation housing office for current wait times and local options.
Additionally, if you have pets, it can be even tougher to find a place that accepts them and even if they do, you may find yourself paying higher deposits and monthly fees.
With the potential to buy a home with no money down1 using a VA loan 2, buying a home could become more attainable. By speaking with a USAA Bank Loan Officer, you can understand your options, learn about VA loan2 eligibility, and see if you’re pre-qualified4 for a VA loan.
Housing options in the military
As a military servicemember, you have various options when it comes to housing. Your options include renting or buying and further break down to living on base in military housing, renting a home off base, or buying a home off base.
Military housing for single servicemembers
In the Army, the military housing for single servicemembers is often known as barracks. These are typically dormitory style living quarters for junior, non-married soldiers with private bedrooms, a common area, a shared bathroom, and a kitchen. Sometimes, there may also be apartments available on base. These are usually available to enlisted soldiers and commissioned officers who fulfill certain requirements. Apartment units are more like civilian housing options and may include larger living spaces and modern amenities while still providing close access to the military community.
Military housing for servicemembers with families
There are usually different options available for married servicemembers, which may include townhomes, duplexes, or single-family homes. Specific housing availability will depend on which base you’re stationed at.
Off-base housing for servicemembers
You can also choose to rent or buy a home off base. If you live off base, you are usually eligible for a Basic Allowance for Housing (BAH) to offset your living costs. The website of the Defense Travel Management Office, which is part of the Department of Defense (DOD), notes that “a member assigned to permanent duty within the 50 United States, who is not furnished Government housing, is eligible for BAH, based on the member’s rank, dependency status, and permanent duty station zipcode.”
Additionally, if on-base housing is full, you may be forced to live off-base. On-base housing usually only accommodates 50-60% off servicemembers, though this will vary based on the location.
You can determine the BAH amount you’re eligible for using the BAH calculator provided by the DOD.
Military housing guests
Many times, military bases may have inns or motels that are available for guests visiting those living on base. However, it will depend on the base and availability.
Renting vs. buying on active duty
According to a 2024 study by The Urban Institute titled Barriers to Homeownership among Active-Duty Servicemembers, while veterans have higher homeownership rates, active-duty servicemembers generally have lower homeownership rates compared to those who aren’t in the military.
See chart below, from this study, that shows the homeownership rates by military status.
Some of the reasons that active-duty servicemembers may be more prone to rent include:
Frequent moving
On average active military servicemembers move every two to four years, known as PCSing, or receiving a permanent change of station. This means that renting may be easier and you avoid having to worry about selling your home.
Saving money
Living on base can be an affordable option, so if you’re in the military and looking to save up money either for a down payment or to build up an emergency fund it might be a good choice for you.
Considerations when buying a home
Whether you’re a veteran, servicemember, or civilian, there are various factors and additional costs to consider when buying a home. In addition to the home price, down payment, and closing costs needed to purchase a home, you’ll be responsible for the following costs as a homeowner:
- Interest rates: Each month, you’ll pay interest if you get a home loan. This will be part of your monthly mortgage payment.
- Property taxes: You’ll usually have annual or bi-annual property taxes, which vary depending on the location of your home.
- Homeowners insurance: Mortgage lenders require homeowners insurance to protect the property. Coverage is also important to protect your belongings and potential liabilities. You may also be required to pay other insurance costs like flood, hurricane, and wind, depending on where your property is located.
- Homeowner Association Fees (HOA): Typically paid monthly by homeowners living within an HOA community to maintain all properties, shared amenities and common areas within the association.
- Repairs and updates: Unlike with renting or living in military housing, you’ll be responsible for repairs, updates, or damage to your home. You’ll want to save in an emergency fund for any large costs like updating an HVAC system, repairing or replacing your roof, or other things that may arise.
- Type of mortgage: There are various options available such as VA home loans, FHA loans, and traditional conventional mortgage loans. Each has its own requirements for eligibility.
You’ll want to speak with your USAA Bank Loan Officer to learn more about available loan options.
How to decide if a VA loan is right for you
If you are considering buying a home, a VA loan2 might be right for you. If you have questions or want to learn about getting pre-qualified4 for a VA home loan2, you can speak to a Loan Officer at USAA Bank. To learn what options are available to you, click this button to submit this form, and we’ll be in touch to discuss how to save with the benefits you’ve earned.
Tools and resources provided by USAA Federal Savings Bank should be considered general advice and for informational purposes only. All information is subject to change without notice and may not apply to all members. Products, services or features mentioned may not be offered by USAA Federal Savings Bank. The information contained is not intended to represent any endorsement, expressed or implied, by USAA Federal Savings Bank or any affiliates.
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