@Dillwyn Mathurin I have picked up a few lessons on the real estate mkt as pertains to military. There are some very unique aspects to the military market. Just a few I can think of:
1) Though the memory is fading, many military members (those with 12 – 20yrs time in service) still to no small extent, base their current housing decisions on the events of 2008. A lot of military simply needed a place to live and got caught upside down to the tune of 6 figures when they got their next set of PCS orders. DoD doesn't cover closing costs on a sale so if the market isn't rising consistently 3+% per year then the service member could be looking at a steep exit bill. Hence, many military are predisposed towards renting vice loosing the flexibility of being able to move quickly and taking on the risk of a stagnant market (note: that as a landlord renting to a military tenant, this is a significant unstated benefit your house is providing that tenant).
2) @Langdon Root said it, and I'll agree 100%: Military can be a great (750+ credit score kinds of folks), low risk group to rent to especially in the single family realm but they are like anybody else, in that they are looking for a good safe neighborhood, with good schools. Good public schools are PARAMOUNT for military families. They value education but can’t necessarily afford private schools (especially on the coasts) so they will typically pay a premium for the best public schools within commuting distance of of a base.
3) The DoD is adjusting Base Allowance for Housing (BAH) rates downward 5% over the next 4 years so that 95% out of pocket costs for housing are covered. This will have some impact on market rent prices. The senate is tied up with another BAH fight in this year's NDAA that would significantly change how service members are compensated for housing. I'd be surprised if it passes but it could set conditions for further cuts down the road.
4) In many places, the economic ‘value’ of on-base housing is not competitive with what the local markets can deliver. However, for some people, this doesn’t matter because people want the safety, convenience, and community of living on base/on post.
5) Large scale deployments will have outsized impact on the local economy, especially areas in direct proximity to a base. When doing your market research, check on how the local economy did during Iraq 2003, Afghanistan 2001, and Desert Storm 1991. If a large piece of the base deploys both the commercial and residential within immediate proximity will be on sale in the near future.
6) Word of mouth is huge in the military. Relationships are everything. It isn’t uncommon for a replacement for a PCS’ing member to move into the same neighborhood as their sponsor...sometimes even 'hot bunk' into the same house.
7) Understand the legal provisions afforded to DoD service members by the Soldier and Sailor’s Civil Relief Act (Military Clauses, etc).
8) Many military with VA loans (zero down and little equity) turn into accidental out of state landlords because the military member can't/doesn't want to come to the table with the 10% costs for a sale after only 2-3 years equity. There are opportunities for off market properties there but it's relationship dependent.
Best of luck.
