PCS Season: Living On-Post, Renting, or Buying?

Getting PCS orders (permanent change of station orders) can start the cascade of worry and questions: What do I start packing? What should I be budgeting for? Do I know anyone there? How soon will I get paid for the move? And of course the big one that has to be answered first:

Should I live on base, rent, or buy?

Depending on what station you’re PCSing to, your options can vary on availability and affordability. We’ll go through the pros and cons of each option to help organize your thoughts around your next move.

 

ON-POST HOUSING

Anyone who’s done it knows that living on post is always a unique experience; there’s no better way to embrace military culture. And while some families love it, others absolutely despise it.

Pros to On-Post Housing 

1. Expenses are Simplified 

Since all housing on post is owned by the military, you do not have to pay rent. However, this doesn’t necessarily mean that living on post is free. If you choose to live on post, your BAH (basic allowance for housing) will be automatically deducted from the service member’s paycheck and sent directly to the property management company. With that being said, some may still consider this a pro since it is one less expense to think about and budget for.

 

     2. Community

If you want to get plugged in with families or other soldiers that live a similar lifestyle as you, it can be much easier to make friends and build a strong network of support when living on post. Events and other opportunities to gather are frequent, , playdates and playgroups are a short walk away, and you’ll always have an empathetic neighbor when you’re in desperate need for a ladder, cup of sugar, or someone to kill the surprise spider on the ceiling while your spouse is overseas.  

 

    3. Convenience

The commute to work doesn’t get much better than this. Beyond being close to you or your soldier’s work building, you are also close to important places like the commissary, exchange, affordable gas, law offices, car washes, and parks.

Cons To On-Post Housing

1. Limited Options

Most military installations you go to will have a long waitlist for housing. You are able to make requests for certain neighborhoods, but there is no actual guarantee that you will get what you want. Simply put, you are at the mercy of availability. 

Not to mention, if you have to PCS before you’re off the waitlist, you’ll have to live in a hotel room until a house becomes available.

     2. Quality Varies

To put it bluntly, the older the base is, the older the housing is. Many bases are trying to maintain the old housing while building more houses to keep up with increased demand. All to say, your options are few and far between. Because of how old most of the housing is, mold, pests, out of date appliances, and damaged finishings aren’t totally unusual. Not to mention, getting mold treated and broken appliances fixed is usually… a process. 

    3. Little Privacy

While many enjoy the tight knit community that the military offers, it can be a little too close for comfort for others. Depending on what development you’re assigned, it might feel like your neighbors are all up in your biiizzz. On top of that, your neighbors will likely be on similar schedules so it’s easy to feel a lack of privacy. If you’re used to having some space, I’d go for another option. 

    4. Detached from surrounding community 

When you can find everything you need on base, it can be easy to feel suffocated by a military installation. Though you may have work, groceries, healthcare, and school drop-off all on post, you’ll have a harder time getting to the fun stuff like local restaurants, coffee shops, and shopping. 

Ps. If you want to experience the nightlife, Ubers and Lyfts don’t typically allow on-post access. 

RENTING

One option that many families and soldiers find easy to manage is renting an apartment or home off-post. Though availability and proximity can vary depending on what duty station you’re PCSing to, most find something that can work for their needs. However, there’s always unpredictability when renting.

 

Pros to Renting 

1. Flexibility 
   

Renting can be a no-brainer for this reason alone. Renting can allow you to have easy access to the local community, and should you have to break a lease due to early PCS or deployment, your finances are protected.

      2. Hassle Free

For those who will be spending little time at home or who have full schedules, renting can portray a life of ease. There’s certainly some comfort in knowing  some appliance repairs and some major home fixes will never fall into your lap. 

Cons to Renting

  1. Price Predictability  

Simply put, you’re at the mercy of increasing rental rates. Just from 2021-2022, rent prices have risen an average of  11.3%. Unfortunately, BAH is not keeping up with those rising prices. The Defense Department’s Basic Allowance For Housing Breakdown reports that the intention of BAH is to cover rent/mortgage AND utilities…. I think we can all insert our laughing emojis here. 

  2. Affordability 

Historically, renting is seen as a more affordable option than purchasing. However, with consistently rising rents and a market that is starting to balance out, the difference in price might surprise you. Researching rental rates vs a typical mortgage payment at your next installation will help you to determine what the most sensible option is for your goals. 

 

BUYING

With rent prices on the rise, more and more soldiers and military families are looking to buy. Of course, so much can vary depending on where you are moving to and what your overall goals are, but buying a home may not be so far fetched as you once thought. 

Pros to Buying

1. Access to the VA Loan

Say goodbye to the myth that you can’t afford to buy because you don’t have a hefty down payment sitting in your savings account! With the VA Loan, you could  be in your home sooner with less hassle. Another plus? VA Loan interest rates are typically lower than conventional loans, and since you’d have little to no down payment or PMI you have a nice extra cushion to spend on some new furniture to go in your new home.

     2. Being in Control 

It goes without saying that since the military has a lot of control over our lives, we like to hold onto whatever we have left. By purchasing, you could have the freedom to paint, renovate, landscape, and bring along your fur babies– the possibilities are endless. This is the perfect opportunity to get creative and make your space your own.

3. Building Equity 

It is no secret that rates are inching upwards which is affecting monthly payments, so working with your lender to lock in your interest rate is crucial.. That payment may give you sticker shock at first, but keep in mind that you are using that money to build your credit and build your equity – not someone else’s.

4. Possibility for Passive Income

Many soldiers will buy a house as an opportunity to make passive income. Whether they live with roommates or keep their home as a rental property once they PCS, this is a great way to have multiple streams of income without picking up an extra gig. Building equity, improving your credit, and more money in the bank? I’d call that a win-win. 

Cons to Buying

1. Financial Responsibility 

The rumor is true, with great power comes great responsibility. The upgrades, repairs, and deferred maintenance all fall on you. That being said, a home inspection and a knowledgeable real estate agent who has your best interests at heart will give you a good indication on what big ticket items will need attention in the near future. 

 

Talk to a Pro

Deciding what housing you’ll go for in the midst of making all the other PCS decisions can be overwhelming, but it doesn’t have to be. My advice? Get clear with your goals and talk with a real estate agent to get any and all of your questions answered. Even if you don’t end up buying, speaking to a pro will help you focus on what life is going to look like at your next duty station.