Whose investing in military markets?

[Justin Key]

We invest primarily in military markets. To us, markets near large military bases provide the below benefits to investors. Who else is investing in these markets? 

1. STRONG rental markets - 430,000+ service members and their families are forced to move every year. This means there are always a healthy supply of new renters at any given time.

2. INSULATED market conditions - factors that affect military markets are different from more typical markets. This is evident when you compare a military market's House Price Index to the national average (see attached). Military markets held up much better during the 2008 housing crisis. BONUS: there are no COVID layoffs for the military!

3. Affordable homes that CASH FLOW - most military markets afford you serious cash flow. And they have under-appreciated appreciation (see what I did there?). Check out the HPI!

4. TWO rent collectors - aside from your property manager, you can rely on a tenant's chain of command to ensure your paid rent. I was an officer in the Army and had to withhold several soldier's pay for unpaid rent.

5. PREDICTABLE rental income - housing allowances (and pay for that matter) are public domain. You can google how much soldiers are being given each month for housing.

What are your thoughts?