With every PCS move, military service members face a key question: Should I rent or buy a home? It’s a conversation many military families have more than once, and unfortunately, there’s no one-size-fits-all answer.
Whether you’re heading to your first duty station or your fifth, deciding to rent or buy is a personal choice shaped by a variety of factors. That’s why it’s important to carefully weigh the pros and cons of each option. By thinking through your long-term goals, financial situation, and lifestyle needs, you can make the choice that’s right for you and your family.
Key Factors to Consider When Deciding to Rent or Buy
How long is your posting?
If your relocation is short-term, renting is likely the most practical choice. It offers flexibility and fewer responsibilities when it’s time to move again. However, if your next duty station lasts three years or more, buying a home could be a smart investment. Not only can you begin building equity, but you may also have the option to rent out the property when you receive your next orders.
Location matters.
The cost of living at your next duty station can significantly influence your housing decision. In more affordable areas, the upfront costs of buying a home may be lower, making it easier to enter the real estate market. In some cases, monthly mortgage payments might even be less than local rents, giving you even more incentive to buy.
However, if you’re posted to a high-cost-of-living city, buying might not be feasible and renting may be the better option for maintaining financial flexibility.
Think about your post-active duty life.
How do you envision it? Do you see yourself putting down roots in a particular city, or would you prefer to remain flexible for career transition opportunities? After years of a mobile lifestyle, the idea of settling in one place might be appealing. That could be a strong argument for investing in real estate early, giving you a home base to transition into when your service ends.
On the other hand, if you’re unsure about your post-military plans, renting may be a better option. It allows you to keep your options open while you explore what’s next.
The Practical Benefits of Renting During Your PCS
Pros of Renting:
- Flexible and easy to move again
- No penalties for breaking your lease early
- Lower upfront costs
- No home maintenance
Cons of Renting:
- Not building equity or long-term wealth
- Cannot personalize the space
- Fewer rental options
- Restricted by a landlord
For a servicemember who is frequently on the move, renting is often the easier and less stressful option. When it comes time to relocate again, you won’t have to worry about selling your home or finding tenants to lease it out to. You can just pack up and go, stress-free.
You also won’t have to worry about the penalties of breaking your lease early. Under the Servicemembers’ Civil Relief Act (SCRA), active duty personnel can terminate their lease early due to deployment or PCS without having to pay any penalty fees.
Pro tip: Before signing any lease, make sure that your landlord has not asked you to waive your SCRA rights. Servicemembers can also request to add a military clause to their lease to further ensure that they will be protected under the SCRA.
Another benefit of renting during your next duty station is that there are fewer upfront costs. Home buyers will need to pay several costs associated with owning a home, such as property taxes, maintenance expenses, and monthly mortgage payments. As a renter, you will only be responsible for monthly rental payments.
Many servicemembers are also eligible for a Basic Allowance for Housing (BAH), which may cover a significant portion of their rent. In high-cost cities, BAH may not be sufficient to cover the monthly mortgage payment, requiring larger out-of-pocket expenses.
When Buying a Home Makes the Most Sense
Pros of Buying:
- Build equity and invest in your future
- Opportunity to earn passive income
- Make renovations and personalize the space
- More stability
Cons of Buying:
- Less flexibility when relocating
- Monthly mortgage payments may be higher than rent
- Responsible for home maintenance, taxes, etc.
- Monthly payments are less predictable than rent
Buying a home is a significant financial investment. If you’re ready for the commitment, the long-term benefits can pay off for years to come. Owning a home can be a great way to build equity and make passive income, which could come in handy in post-active duty life.
As a renter, you won’t get any of the money back that you pay in rent. But as a homeowner, each monthly mortgage payment brings you closer to full ownership. This turns your monthly payments into an investment, not just an expense.
Even if you’re reassigned to a new duty station, your home doesn’t have to become a burden — it can become an asset. You might choose to sell and, depending on market conditions, use the equity you’ve built to fund other investments or purchase your next property.
Alternatively, you may decide to keep the home and rent it out as an investment property. This can provide an additional income stream, though it comes with added responsibilities, such as managing tenants or hiring a property manager. In the long term, having an investment property could lead to thousands of dollars in passive income.
Another reason some servicemembers may choose to buy rather than rent is the unique set of benefits available to them. The most notable of these is the VA home loan. This program allows eligible active-duty personnel and veterans to secure a mortgage with no down payment and access competitive interest rates. It’s a rare opportunity not available to most civilians and can be a powerful incentive for entering the housing market.
By eliminating the need for a down payment, the VA loan makes homeownership more affordable upfront, allowing servicemembers to save money, build equity sooner, and achieve long-term financial stability.
Choosing What Works for Your Family
Regardless of whether you choose to rent or buy during your next duty station, comparing your options carefully is essential. Consider your posting length, financial goals, local market conditions, and long-term lifestyle plans. Each option offers its own advantages, and the key is to find the one that aligns with your needs both now and in the future.