Living On-Base vs. Off-Base: How Does Military Housing Work?

PCSing opens a new chapter in your military journey. You might not get to choose your new duty station, but you’ll typically get to choose where to call home once you get there. Whether you’re considering military housing on-base or exploring neighborhoods off-base, each option offers unique advantages for you and your family.

Finding the right fit depends on what matters most to you. Let’s go over the housing options available to Servicemembers so you can make a confident decision that will help you settle in post-PCS. 

How does housing work in the military?

When you receive PCS orders, you’re on your way to a new duty station—and a new home. The military offers housing options on-base for Servicemembers, but many choose to live off-base in the local community. It all depends on a few important factors:

• Marital status and lower ranks: Single and lower-rank Servicemembers are typically required to live on-base so they’ll be available for training and activities. They can also easily access on-base resources, build camaraderie with their fellow Servicemembers and benefit from a secure and structured environment.
• Dependents and higher ranks: Servicemembers with higher ranks or those who have dependents typically have more flexibility. They can choose to live in on-base family housing, which offers larger homes and access to community amenities like schools and playgrounds. Or, they can use their BAH to rent or buy from a wider selection of housing options off-base.
• BAH (or OHA if you’re stationed overseas): These are key military benefits that help cover some basic housing costs. BAH rates vary based on your rank, whether you have dependents and the cost of living in your duty station’s area. This allowance can give you flexibility in your housing choices. 

Your housing options may also depend on your specific situation, such as your housing availability at your new installation. Some require certain ranks to live on-base. Others may have waiting lists for housing. Your branch of service might have different policies, too. Check with your installation’s housing office for details.

Types of military housing

When you move to a new duty station, you have several housing options to choose from. Each type offers different benefits and considerations that can make it a great match for your situation. Here are your 5 main housing choices for military moves:

1. Government-owned on-base housing. This housing is provided by the military on the installation. Your BAH goes directly toward your rent and most utilities. You don’t have to deal with making these payments yourself, which makes budgeting simpler. These homes are conveniently located near base facilities and your workplace. 
2. Privatized military housing (on-base). These homes are located on-base but are managed by private companies that partner with the military. You’ll use your BAH to pay for rent and utilities. Privatized housing often features newer or renovated homes with modern amenities as well. 
3. Single/unaccompanied on-base housing. If you’re a single Servicemember or are serving unaccompanied, you can typically choose barracks or dormitory-style housing. You may be required to live here depending on your situation. This housing is rent-free on most installations, so you typically won’t get BAH. You might share a room or bathroom. However, common areas can make socializing and community building easier. 
4. Renting off-base. Using your BAH, you can rent a home, townhome, apartment or condo in your new community. This option gives you more housing choices and separation between work life and home life. Make sure your lease includes a military clause that allows you to break the lease if you receive new PCS orders. 
5. Buying off-base. Purchasing a home may be a good investment, especially if you expect to stay at your duty station for several years or return to the area later. You can use your BAH toward mortgage payments to help make things more affordable.

The pros and cons of on-base vs. off-base housing

Choosing between on-base and off-base living comes down to what works best for you and your family. Every military family has different needs—what’s perfect for one might not work for another. Consider the benefits and drawbacks of both options.

Housing options

Commute time

Military community support

Access to amenities

Security

Family considerations

Pet allowances

Financial responsibilities

A common misconception is that off-base housing is always more expensive than on-base housing. That’s not always true, says Thomas Racca, Navy Federal’s Manager of Personal Finance Management (PFM). “If you budget wisely and look around, you might actually save money and enjoy more freedom.”

The lifestyle you choose can also impact your overall spending. For example, living off-base with roommates might help you save money. Or, it could give you easy access to nightlife excursions that lead you to spend more money than if you lived on-base. 

“We are all creatures of habit, and setting ourselves up with a positive environment and being around others that we want to emulate goes a long way towards helping us reach our long-term financial goals,” Racca says.

According to Racca, your desired quality of life and long-term goals both are key factors in deciding where to live when you PCS. “Being closer to good schools, restaurants, parks, movie theaters or grocery stores may be drivers for your choice. Or having a bit more square footage to spread out at home might move the needle for you. It all goes back to having long-term goals and balancing them against your day-to-day comfort.”

Still deciding whether to live on-base vs. off-base? The military community is a great resource. Connect with your base’s housing office or join online groups to get insider tips about your specific installation or local housing options. If possible, visit the location before you move.

Financial considerations when choosing PCS housing

Finding affordable housing that meets your needs is a key part of establishing your finances after a PCS move. Here are some important financial factors to consider as you explore your options at or near your new installation.

Understand your BAH

Your BAH is designed to cover basic housing costs, but how it works depends on your housing choice. If you live on-base and receive BAH, your entire allowance may go directly to the housing office or management company. If you live off-base, you’ll get your BAH amount in your paycheck and then pay for housing yourself.

Check your BAH rate for your rank and duty station to confirm what you should receive. BAH is based on local rental markets, not mortgage costs, so it should help cover average rental expenses in your area. 

If you find housing that costs less than your BAH, you can use the extra money toward other financial goals. And, BAH is a tax-exempt allowance.

“To get the most out of their BAH, Servicemembers can look for affordable housing options off-base that still meet all their needs,” Racca says. “Some people choose to get roommates to lower costs or live a little further from base where rent may be cheaper. Others might find a place with utilities included to save even more.”

Create a budget that includes moving expenses

Before choosing housing, create a complete budget that includes both one-time costs and ongoing expenses. Aim to fit your budget within your BAH. Living off-base might mean factoring in more housing costs, so you could save money in other areas.

“The best way to save money is by having a budget,” Racca says. “You need to know how much income is coming in and how much is going out. Online tools such as Navy Federal’s My MakingCents can help you to track spending and create a budget, all just a few clicks away.”

You can also connect with a trusted financial advisor when facing big financial changes. Look for those that offer personalized financial counseling to help you with your decisions. 

“Think about what matters most to you—cost, location, community or convenience—and base your choice on that,” Racca says. “No matter what, planning ahead and staying flexible will help you make the best decision for you and your family.”

Learn how buying a house in the military works

If you’re considering buying a home, look into special programs designed for Servicemembers. Here are some common options:

• VA Loans: These are government-backed loans used to help Servicemembers buy homes. 
• Military mortgage options: These could be used instead of a VA loan, especially if you've exhausted your VA benefits.
• State and local programs: Many of these offer benefits for military homebuyers.

Buying a home is a big decision, especially with the possibility of future PCS moves. Consider how long you expect to be stationed in the area and whether you’d be comfortable renting the home if you receive orders to move again.

Racca recommends thinking about how long you’ll be in your new duty station. “If it is less than five years, you should consider the local market when discussing buying compared to renting. It’s all about balancing convenience with the potential to save or upgrade your lifestyle.”

Consider any special housing needs

Military life comes with unique situations that may affect your housing decisions. Fortunately, the military provides support and resources to help you find suitable housing for these circumstances:

• Exceptional Family Member Program (EFMP). If you have a spouse, child or other dependent family member with special medical or educational needs, EFMP can help you find suitable housing. Some installations have on-base housing for EFMP families with access to necessary services.
• Overseas housing. For Outside the Continental United States (OCONUS) assignments, you may receive Overseas Housing Allowance (OHA) instead of BAH. OHA works differently than BAH, with separate allowances for rent, utilities and moving expenses.
• Temporary lodging. During your transition, Temporary Lodging Expense (TLE) benefits can help cover hotel costs for up to 10 days in the continental United States. Plan your move timeline to make the most of this benefit while you finalize your permanent housing.

Navy Federal is here to help when you PCS

Moving to a new duty station brings many changes for military personnel. Navy Federal offers resources to make your transition smoother. Our PCS Hub features information, tools and financial products that can help you plan your move. 

We can also help you explore military mortgage options if you’re considering buying a home at your new location. When you’re ready to make your housing decision, Navy Federal is ready to support you with competitive rates and personalized service from people who understand military life.