Military Housing: Should You Live on Base or Rent off Base?

Reviewed by Pamela Rodriguez

Serving in the military is a tough job that demands sacrifices. In turn, the government offers unique benefits to those who volunteer. One of the biggest perks is that the military pays some or all the costs of housing, though it’s not as straightforward as it may sound. 

With some exceptions, service members have the option to rent—or even buy—off the military installation. There are pros and cons to living on base and off, and the decision largely comes down to personal preferences and budget. 

Key Takeaways

• You may be able to choose between on-base and off-base living, although there’s often a waitlist for base housing.
• On-base housing may be rent-free or, if it’s privately managed, subsidized by the military.
• Those living off-base get a housing allowance up to limits based on rank, location, and family size.
• Overseas housing works a bit differently, with the military requiring prior inspection of an off-base residence.

Types of Military Housing

In most cases, you have the choice of living in free housing on base or accepting a housing allowance and finding a place on your own.

If you choose to live on base, the housing might be either government-owned or privatized. When it’s government-owned, the Department of Defense owns and manages the property.

If the base housing is privatized, which is now common, the government has contracted out the housing to a private company. That company serves as your landlord and manages the property. You’ll receive a Basic Housing Allowance (BAH) in your paycheck and use that to pay your rent and utilities.

Single or unaccompanied service members can choose to live in barracks, which are rent-free but may mean sharing a room and a bathroom. Some branches require single service members below certain ranks to live in barracks.

On the plus side, it’s free.

The Off-Base Option

In most areas, service members have the option to live off base. The government pays for your housing up to a certain limit.

Many don’t really have an option. There are long waitlists for base housing in some locations, leaving families with no choice but to live off-base. at least until something opens up.

That gives you the freedom and flexibility to find the type of home and location you prefer. But it can come with additional headaches.

Note

If you’re on the housing waitlist and live off base, the military will cover your moving cost when there’s an opening. But it won’t cover expenses if you move from the base into the community, or from one off-base residence to another.

Differences Between Stateside and Overseas 

Before diving further into housing options, it’s critical to know how housing varies depending on whether you’re stationed in the Continental United States (CONUS) or outside it—for example, overseas (OCONUS).

When you’re stationed CONUS, unless you live in government-owned base housing, you’ll receive a monthly BAH payment as part of your paycheck. The amount you receive is determined by your rank/pay grade, geographic location, and whether you have dependents.

It’s up to you to use that money to pay your rent and any utilities if you have money left over. If you find a place that costs less than your BAH, you can pocket the difference.

That makes off-base living a smart option in affordable areas. If your BAH is $1,200 but your rent is $1,000, you can spend the extra $200 however you want.

In more expensive areas, you may end up paying more out of pocket for housing. 

Some service members choose to buy homes (often with VA loans). Just be aware that the BAH is based on rental costs, not the costs of homeownership such as property taxes or insurance.

If You’re Serving Overseas

Things work differently for those who are stationed outside the U.S. Instead of the BAH, service members receive the Overseas Housing Allowance (OHA).

Like the BAH, the amount of this allowance is determined by pay grade, location, and number of dependents. Service members receive a monthly utility/recurring maintenance allowance, but the rent payment varies up to a set monthly maximum.

A military person will the property to ensure it meets American housing standards and review the lease. Once it’s approved, the military reimburses the service member for the exact rent amount up to the OHA maximum.

Living on Base

Some military families rave about living on their installation, while others absolutely hate it. Living options and on-base amenities also vary greatly from base to base. Sometimes, waitlists for on-base housing can last up to a year, so it’s not even an option, at least for a while.

Pros

• Little or no rent

• Safety and security

• Close to work

• Close to amenities

• Family-friendly

• Sense of community

• Simpler than finding off-base housing

Cons

• Less control over your type of housing

• You frequently have to pass through security

• In some cases, poor management by contractors

• Can be noisy

• May have restrictions against activities like running a small business

Pros of Living On Base

• If the housing is government-owned, you don’t have to pay rent, and even if housing is privatized and you pay rent, it’s often more affordable than off-installation housing—especially in costly regions on the West and East coasts.
• The commute is virtually nonexistent, making even lunch at home a possibility.
• You’re close to on-base events and amenities like the commissary and base schools.
• It’s family-friendly, with day care, school, events, activities, and other families with kids at your doorstep.
• There’s a built-in community, making it easier to make friends and find connections in a new place.
• If it’s a short assignment, living on base may be easier than finding a residence off base and going through the rental process.
• Some utilities and expenses may be included.

Cons of Living On Base

• You’re typically assigned a residence. You could luck out with a single-family home with a backyard or get stuck in a duplex or fourplex with no yard. It could be newly renovated or old and in need of repair.
• You have to go through the security gate whenever you enter or exit base, which can feel like a hassle.
• You’re insulated in a cultural bubble, so you may not get much of an authentic experience living in a new place.
• There have been reports of privatized housing companies performing poorly, including instances of failing to repair homes or address safety concerns like faulty wires or black mold. Fortunately, the Military Housing Privatization Initiative Tenant Bill of Rights offers new rights to military families living in privatized base housing, so familiarize yourself with your rights.
• Depending on the base, you may have to get used to noise from aircraft, gun ranges, or training exercises.
• There can be restrictions on the use of the residence. For example, a spouse might be forbidden to run a home-based business.

Living Off Base

Though living on base is the easier and more affordable choice for some, others prefer using their BAH to rent off the installation. 

Pros

• You can choose the type of housing you want

• You can choose the location

• Experience the local community

• Work/life balance

• Potentially save more money

• Build equity if you buy property

Cons

• May have to break a lease

• Subject to the rules of the lease/landlord

• May have to pay out of pocket

• Dealing with currency conversion if you’re overseas

• Subject to housing market whims if you buy/sell property

Pros of Living Off Base

• You have the freedom to find a property with the size and features you want. 
• You choose the location, so if you like to get out and about, you may enjoy renting in a nearby city rather than living on base.
• You can get more immersed in the local community, which may be especially helpful for single service members; those who are LGBTQ+ especially may find a larger community off base.
• There’s more separation between work and personal life for the service member.
• If you’re stateside and find a rental that costs less than your BAH, you can use that money to jump-start your savings. 
• You can buy a property using your BAH toward your mortgage and build equity. When you leave, you can either sell the property or keep it and rent it out.

Cons of Living Off Base

• You have to make sure the military clause is in the lease so you can legally break it if you get orders elsewhere.
• If the landlord doesn’t renew your lease or requires you to vacate before your tour ends, you have to find a new rental property. If you move to another off-base property, you’re on your own with moving resources and expenses.
• Though BAH and OHA rates often cover most of the costs of off-base rent, it doesn’t always fully cover the cost, so you may pay some out of pocket (this is especially common in expensive places like California).
• If renting while OCONUS, you have to deal with currency conversion. Though the military does give an overseas cost of living allowance (COLA) to members living abroad to account for the extra expenses, depending on where you live and what the currency version is like, it’s not always enough. (The military also offers CONUS COLA to some stateside service members living in above-average cost-of-living areas.)
• You may be forced to buy or sell a property at a bad time due to a change in your assignment.

Housing Allowance for Guard and Reserves

Housing compensation is different for those who serve in the National Guard or Reserve because they usually serve in a part-time capacity while living and working in the civilian world. 

If a service member in the National Guard or Reserve is activated under Title 10 or Title 32 for 30 days or less, they receive a separate type of BAH during that time, called the BAH RC/T.

This is a housing allowance that doesn’t vary by location; it’s based on the average cost of national housing. Those who are active beyond 30 days are eligible for the same BAH as other full-time service members during the duration.

Can Retired Military Service Members Live On-Base?

The private companies that operate 99% of U.S. military housing rent housing as available to people who are not active service members. Applicants may be military or civil service retirees, National Guard or Reserve members, Department of Defense contractors or even members of the general public.

Which Are the Top Choices Among U.S. Military Bases?

The U.S. Army has a recruiting initiative that allows newly enlisted soldiers to pick their first duty stations. According to Military.com, the top choices in 2022 and 2023 were Fort Cavazos, Texas; Fort Campbell, Kentucky; Fort Carson, Colorado; Fort Bliss, Texas, and Joint Base Lewis-McChord, Washington.

Which Are the Worst Places to be Stationed in the U.S. Military?

A contributor to the Military Officers Association offers these lighthearted and highly unofficial tips for bases to avoid:

• Fort Polk, Louisiana, which has the sole strong point of being “only” 196 miles from Houston, Texas
• Fort Leonard Wood, Missouri, known to some residents as “Fort Lost in the Woods”
• MCAS, Wyoming, which is very, very sandy

The Bottom Line

Whether you choose to live on base or off base is a highly personal decision. Both options come with plenty of benefits and headaches, but the right choice comes down to your finances, your personality, and your preferences.

Though, as with everything in military life, sometimes the decision is out of your hands.

Read the original article on Investopedia.