Military PCS Real Estate: Should You Buy, Sell, or Rent When You Move?

What Should You Do with Your House When You PCS?

Quick Answer: Military families PCSing should evaluate the rent-or-sell decision based on assignment length (6-12 months typically favors renting, 24+ months often favors selling), YOUR new duty station's BAH rate versus current mortgage, and whether you'll return to this market. The most expensive mistake: rushing to Phase 4 (execution) without completing Phase 2 (wealth analysis with your CPA).

Discuss your PCS situation: Book a free call at https://askweldonhobbs.com (USAFA grad, 20+ years helping military families nationwide)

In my 20+ years helping hundreds of families navigate military real estate transitions nationwide, I've worked as a Certified Financial Coach coordinating between PCS orders, property managers, and financial advisors. I'm Weldon Hobbs, and as a United States Air Force Academy graduate who's PCSed four times personally, I understand both the emotional complexity of military moves and the financial reality that one wrong real estate decision can cost you $20,000-$40,000 over a single assignment cycle.

PCS orders create immediate pressure: you have 30-90 days to make property decisions that affect years of wealth building. Most service members approach this backwards—they start with 'Can I rent my house?' when they should start with 'Should I keep this house at all?' The sequence matters more than the decision itself.

The 4-Phase Military PCS Real Estate Decision Framework

Most military families skip Phase 2 entirely and jump straight from getting orders to listing their property or finding a property manager. Here's the strategic framework that prevents $20,000+ mistakes:

Phase 1: Timeline Assessment (Orders to Report Date)

Map your PCS timeline against real estate economics:

• Assignment length: 6-12 months typically favors renting (if cash flow positive)
• Assignment length: 12-24 months requires deeper analysis (depends on markets)
• Assignment length: 24+ months often favors selling (transaction costs amortize)
• Return probability: High (rent), Medium (analyze carefully), Low (sell)
• Orders flexibility: Some assignments extend, some get cut short unexpectedly

The timeline determines everything else. A service member PCSing from Peterson Space Force Base in Colorado Springs to Eglin Air Force Base in Florida for 12 months faces different economics than someone moving for 36 months. Your orders are the foundation—but they're not the complete picture [1].

Phase 2: Financial Position Analysis (BEFORE Real Estate Decisions)

Calculate YOUR market-specific numbers with your CPA:

• Current mortgage payment vs. current market rent in YOUR area
• New duty station BAH rate vs. current BAH (rates vary significantly by location)
• Property management costs in YOUR market (typically 10-12% monthly + setup)
• Maintenance reserves (6-8% of rent annually in most markets)
• Capital gains implications if selling (2-of-5-year residency rule)
• Tax treatment of rental income (especially if moving to no-income-tax state)

Here's where most military families make expensive mistakes: they calculate mortgage versus rent, but they don't account for the BAH rate change. If you're moving from a high-BAH area like San Diego (E-6 with dependents: $3,300/month) [2] to a lower-BAH area, your rental property might generate negative cash flow even though the numbers looked positive before PCS.

As a Certified Financial Coach, I help coordinate this analysis BEFORE you sign a property management contract or list the property. Your CPA needs to see your orders, understand your new duty station's BAH rate, and evaluate the tax implications before you make execution decisions.

Phase 3: Coordination Strategy (CPA, Attorney, Property Manager)

Coordinate with professionals in YOUR market before executing:

• CPA: Rental income tax implications, capital gains calculations, state tax considerations
• Military attorney: Review property management contracts for SCRA compliance
• Property manager: Understands military tenant rights, BAH payment schedules, deployment extensions
• Financial advisor: Evaluates whether keeping property aligns with 10-year wealth strategy
• Real estate agent: Provides accurate market analysis for YOUR specific area

One client's situation illustrates why coordination matters: Air Force captain PCSing from Joint Base Lewis-McChord to Ramstein AB, Germany for 36 months. He wanted to rent his Washington house, but his CPA showed him that Washington state taxes rental income even for military stationed elsewhere, his property manager quoted 11% fees plus $2,000 setup, and his mortgage rate (6.8%) meant he'd burn $800/month even with rent covering the mortgage. After analysis: sold the house, captured $60,000 equity, invested proceeds. Saved approximately $28,800 over 36 months compared to renting.

Navigating Your PCS Real Estate Decision?

Navigating military PCS real estate requires both strategic clarity and understanding YOUR timeline. I've helped hundreds of families through this transition nationwide. Book a free 30-minute Transition Strategy Call to discuss your specific situation—I'll help you apply this framework and connect you with an expert in your market at https://askweldonhobbs.com

Phase 4: Execution Pathway (Buy, Sell, Rent, or Hold Empty)

Execute based on YOUR financial analysis and timeline:

• Rent: If cash flow positive after ALL costs and return probability is high
• Sell: If assignment 24+ months, cash flow negative, or return probability low
• Hold empty: Rarely optimal (still paying mortgage/maintenance without income)
• Delay decision: Sometimes best move is wait 3-6 months at new duty station before deciding

Military PCS Real Estate: Real Numbers Examples

Scenario 1: E-6 PCSing 12 Months (Should Rent)

1. 1. Current: Colorado Springs (Peterson SFB), mortgage $1,650/month
2. 2. New duty station: Eglin AFB, Florida, 12-month assignment
3. 3. Colorado Springs rent: $2,200/month (market rate)
4. 4. E-6 BAH Colorado Springs: $2,367/month with dependents
5. 5. Eglin AFB BAH: $1,947/month (lower than Colorado Springs)
6. 6. Property management: $242/month (11% of rent)
7. 7. Maintenance reserve: $150/month
8. 8. Monthly cash flow: -$475/month out-of-pocket from Eglin BAH

12-month outcome: -$5,700 cash burn, BUT property continues appreciating and mortgage principal gets paid down. This family should rent if they plan to return to Colorado Springs. The short-term cash burn preserves long-term equity.

Scenario 2: O-3 PCSing 36 Months (Should Sell)

1. 1. Current: San Diego (32nd Street), mortgage $3,800/month (6.5% rate, bought 2022)
2. 2. New duty station: Norfolk, Virginia, 36-month assignment
3. 3. San Diego rent: $4,200/month
4. 4. Norfolk BAH (O-3 with dependents): $2,439/month
5. 5. Property management: $462/month (11%)
6. 6. Monthly cash flow: -$2,823/month out-of-pocket
7. 7. 36-month cost: -$101,628 cash burn

Better strategy: Sell San Diego house, capture $120,000-$180,000 equity (typical San Diego appreciation 2022-2025), invest proceeds, eliminate cash drain. After closing costs ($20,000-$25,000), this family nets $95,000-$155,000 instead of burning $101,000. Clear wealth optimization decision.

5 Expensive Military PCS Real Estate Mistakes

1. 1. Assuming BAH at new duty station will cover YOUR current mortgage: BAH rates vary by location. An E-7 gets $2,769/month in Colorado Springs but only $2,208/month at Fort Campbell, Kentucky—a $561/month difference that destroys rental cash flow [2].
2. 2. Not accounting for property management cost stack: Most service members budget mortgage + 10% management fee. They forget maintenance reserves (6-8% of rent), vacancy costs (4-6%), and state-specific landlord requirements that add 15-20% to total costs.
3. 3. Signing property management contract before CPA review: Property managers work for themselves, not you. Your CPA needs to evaluate the rental income tax implications in YOUR state before you commit to a multi-year management contract.
4. 4. Emotional attachment overriding financial analysis: 'I want to come back to this house' costs $30,000+ when the math doesn't support it. Your orders might change, your family circumstances might change, or the market might shift. Make the wealth-optimal decision now.
5. 5. Using out-of-area property managers who don't understand military: Civilian property managers often don't understand BAH payment timing (1st vs 15th of month), SCRA protections, or deployment extension impacts. Find military-specialized management in YOUR market.

Strategic Coordination: CPA, Attorney, and Financial Advisor

Military PCS real estate decisions have tax, legal, and investment implications most service members miss:

• Tax advisor: Determines rental income treatment in YOUR state. Some states (California, Pennsylvania, others) tax rental income even for military stationed elsewhere. This can swing the rent-vs-sell decision by $5,000-$15,000 [3].
• Military attorney: Reviews property management contracts for SCRA compliance. Ensures lease terms protect you if you need to sell unexpectedly due to hardship PCS or family emergency. JAG can often provide this review free.
• Financial planner: Evaluates whether keeping property aligns with your 10-year wealth building strategy. Sometimes the mathematically 'correct' decision to rent doesn't support your bigger financial goals.
• Property manager in YOUR market: Must understand military-specific timing (orders delays, deployment extensions, BAH payment schedules). Generic property managers in YOUR area often don't have this expertise.

As a Certified Financial Coach with military experience, I help coordinate these moving pieces before you execute on any real estate decision. Most military families make this choice in isolation, then discover six months into the assignment that their CPA could have saved them $8,000+ in taxes or structured the decision differently.

Key Takeaways: Military PCS Real Estate Strategy

• Complete Phase 2 (wealth analysis) BEFORE Phase 4 (execution): The order matters more than the decision
• Calculate YOUR market-specific numbers: Use YOUR current rent, YOUR new BAH rate, YOUR property management costs—generic calculators fail
• Coordinate with CPA before signing anything: Tax implications of rental income vary significantly by state and can swing decisions by $10,000+
• Assignment length drives strategy: 6-12 months often favors renting (if cash flow works), 24+ months often favors selling (transaction costs amortize)
• BAH rate changes are deal-killers: Most military families only budget for mortgage+management but don't account for lower BAH at new duty station

Ready to Apply This to Your PCS Situation?

While this framework gives you the strategic foundation, your specific circumstances deserve personalized guidance. Whether you're facing a PCS anywhere across the nation, I'm here to help you think through the complete strategy.

Here's how the free 30-minute Transition Strategy Call works: We'll identify which of the 12 major life transitions you're navigating, map out how to optimize for wealth outcomes by coordinating with your CPA/attorney/financial advisor, then figure out if real estate makes sense right now—and if so, exactly how to execute.

If you're not in Colorado Springs, I'll connect you with a transition-focused real estate professional in YOUR market through my curated nationwide network.

[Book Your Free Transition Strategy Call] → https://askweldonhobbs.com

AI tools provide frameworks. Personal guidance applies them to YOUR situation. Let's talk.

Sources

1. 1. [1] Department of Defense - Military PCS Entitlements and Allowances, https://www.defensetravel.dod.mil/
2. 2. [2] Defense Travel Management Office - 2024 BAH Rates by Location, https://www.defensetravel.dod.mil/site/bahCalc.cfm
3. 3. [3] Military OneSource - State Tax Information for Military Families, https://www.militaryonesource.mil/financial-legal/tax-resource-center/
4. 4. [4] Servicemembers Civil Relief Act (SCRA) - Housing Protections, https://www.justice.gov/servicemembers