Best Military Towns for [Real Estate Investing](/blog/brrrr-strategy-guide) in 2026: Stable Markets Near Major Bases

Military base towns offer unique advantages that traditional rental markets can't match: guaranteed housing allowances (BAH) paid directly by the government, tenant pools with steady income and security clearances, recession-resistant demand (military doesn't downsize during recessions), and predictable turnover creating regular re-leasing opportunities.

The best military town investments combine large active-duty populations (10,000+ service members), generous BAH rates, stable or growing base missions, and property prices low enough that BAH covers rent with room for landlord profit.

This guide identifies the 12 best military base towns for real estate investing in 2026, explains how to market to military tenants, and shows you how to structure leases around PCS (Permanent Change of Station) cycles.

What Makes Military Towns Great for Investors?

Military housing markets operate differently than civilian markets. Understanding these dynamics is critical:

Basic Allowance for Housing (BAH): Service members receive tax-free housing allowances based on rank, dependents, and duty station ZIP code. A married E-5 (sergeant) at Fort Bragg receives $1,470/month. An O-3 (captain) with dependents gets $1,950/month. This is guaranteed government money.

Recession Resistance: Military employment stays stable through economic downturns. While civilian renters lose jobs during recessions, military personnel continue receiving paychecks and BAH. 2008-2009 recession barely impacted military rental markets.

Background Checks Built-In: Active-duty military have security clearances requiring background investigations. You're renting to people already vetted by the government. Significantly reduces risk versus general population.

Predictable Turnover: PCS orders typically come every 2-4 years. This means guaranteed turnover, but also predictable timing. Military families know their move dates months in advance, giving you time to market properties.

Professional Tenant Pool: Military discipline and accountability transfer to rental behavior. Service members who damage property or skip rent face military justice (Article 15, court-martial potential). This creates better-than-average tenant behavior.

Large Rental Pools: Major bases with 20,000-50,000 active-duty personnel plus civilian contractors create substantial demand. Unlike small towns dependent on one factory, military bases represent permanent government investment.

Top 12 Military Base Towns for [Real Estate Investment](/blog/dscr-loan-fix-and-flip)

1. Fayetteville, North Carolina (Fort Liberty, formerly Fort Bragg)

Active-Duty Population: 57,000
Median Home Price: $245,000
BAH (E-5 with dependents): $1,470/month
BAH (O-3 with dependents): $1,950/month

Fort Liberty is America's largest military installation by population. Home to the 82nd Airborne Division, Special Operations Command, and dozens of other units, the base guarantees stable long-term demand.

Investment Strategy: Buy 3-4 bedroom homes in $220,000-$280,000 range in neighborhoods like Hope Mills, Spring Lake, or Raeford Road corridor. These rent for $1,400-$1,900/month, perfectly matching BAH rates.

Fayetteville Advantage: Massive base population means multiple submarkets. E-5s and below rent in different areas than officers. You can build portfolios targeting specific rank ranges with appropriate property types.

Challenge: Fayetteville has surplus rental supply due to base size. Focus on well-maintained properties in [safe neighborhoods](/blog/crime-rate-impact-property-values). Substandard properties sit vacant while quality homes rent immediately.

2. Killeen, Texas (Fort Cavazos, formerly Fort Hood)

Active-Duty Population: 38,000
Median Home Price: $235,000
BAH (E-5 with dependents): $1,470/month
BAH (O-3 with dependents): $1,986/month

Fort Cavazos (Fort Hood) is the largest armored post in the free world. Tank and artillery units create stable demand. Texas's landlord-friendly laws and no [state income tax](/blog/states-with-no-income-tax-investing) make Killeen attractive.

Market Dynamics: Properties in Harker Heights and Nolanville (north of base) attract officers and senior NCOs. Killeen proper and Copperas Cove serve junior enlisted and younger families.

Cash Flow Potential: $220,000-$260,000 properties renting for $1,500-$1,850 generate positive cash flow with 25-30% down payments. Texas property taxes (2.0-2.5%) are the main expense concern.

Stability Factor: Fort Cavazos's mission (armored warfare training) is permanent. The base isn't closing or downsizing. This provides 20-30 year investment horizon confidence.

3. Clarksville, Tennessee (Fort Campbell)

Active-Duty Population: 30,000
Median Home Price: $285,000
BAH (E-5 with dependents): $1,494/month
BAH (O-3 with dependents): $2,046/month

Fort Campbell (101st Airborne Division) straddles the Tennessee-Kentucky border. Most investors buy on the Tennessee side for better landlord-tenant laws and no state income tax.

Growth Market: Clarksville is among America's fastest-growing cities (2.8% annually), driven by base expansion and Nashville proximity (45 miles). This creates appreciation potential beyond typical military towns.

Investment Sweet Spot: Properties in $260,000-$320,000 range in neighborhoods like St. Bethlehem or Montgomery County. Target officer housing for $1,800-$2,200 rents matching higher BAH rates.

Dual Market: Clarksville attracts both military families and Nashville commuters seeking affordability. This diversification reduces dependence on base alone.

4. Virginia Beach/Norfolk, Virginia (Naval Station Norfolk, Joint Base Langley-Eustis)

Active-Duty Population: 65,000+ (across Hampton Roads)
Median Home Price: $375,000
BAH (E-5 with dependents): $1,998/month
BAH (O-3 with dependents): $2,547/month

Hampton Roads hosts the world's largest naval installation plus Air Force, Army, and Coast Guard bases. Navy dominates, with carrier strike groups, submarine force, and Naval Special Warfare.

High BAH Advantage: Virginia Beach's high cost of living drives generous BAH rates. Properties renting for $2,000-$2,500 are fully covered by enlisted BAH.

Deployment Cycles: Navy deployments (6-9 months) mean some families prefer shorter leases. Offer flexible 12-18 month terms. Deployed service members pay rent from sea to maintain housing for families.

Best Areas: Chesapeake (lower prices, $320,000-$380,000), Virginia Beach near Oceana Naval Air Station, and Suffolk for maximum cash flow. Avoid Norfolk city proper due to higher crime.

5. San Diego, [California](/blog/california-heloc-guide) (Naval Base San Diego, Camp Pendleton, MCAS Miramar)

Active-Duty Population: 110,000+ (across county)
Median Home Price: $825,000
BAH (E-5 with dependents): $3,069/month
BAH (O-3 with dependents): $3,780/month

San Diego represents the extreme end of military town investing—massive BAH rates but astronomical property prices. Works only for well-capitalized investors or those who bought years ago.

Reality Check: $825,000 median requires $165,000-$200,000 down. Even with $3,000+ rents, cash flow is minimal or negative. This is appreciation play, not cash flow investment.

Alternative Strategy: Buy condos or townhomes in $450,000-$550,000 range (Chula Vista, El Cajon, Oceanside) and target junior officers and senior enlisted. These properties rent for $2,400-$2,800, matching mid-level BAH.

Why It Still Works: San Diego's climate, beaches, and quality of life make it highly desirable. Military families often prefer renting to allow flexibility for PCS orders. Demand stays strong despite high prices.

6. Colorado Springs, Colorado (Fort Carson, Peterson Space Force Base, Air Force Academy)

Active-Duty Population: 45,000
Median Home Price: $465,000
BAH (E-5 with dependents): $1,836/month
BAH (O-3 with dependents): $2,388/month

Colorado Springs hosts Army (Fort Carson), Space Force (Peterson SFB, Schriever SFB), and Air Force Academy. Diverse military branches reduce risk of single-base dependence.

Mountain Premium: Rocky Mountain views and outdoor recreation drive prices higher than typical military towns. Properties work better as appreciation plays than pure cash flow investments.

Officer Market Focus: Air Force Academy and Space Force attract officers with higher BAH. Target $400,000-$550,000 properties in Briargate, Northgate, or near Academy for $2,200-$2,800 rents.

Long-Term Hold: Colorado Springs combines military stability with broader tech sector growth (cybersecurity companies cluster here). Hold 10-15+ years for appreciation.

7. El Paso, Texas (Fort Bliss)

Active-Duty Population: 35,000
Median Home Price: $235,000
BAH (E-5 with dependents): $1,341/month
BAH (O-3 with dependents): $1,800/month

Fort Bliss (air defense and armored units) creates consistent demand in affordable market. El Paso's low cost of living means BAH covers rent with comfortable margins.

Affordability King: $200,000-$260,000 properties rent for $1,300-$1,700, perfectly aligned with BAH. Positive cash flow achievable with 25% down payments.

Border Location: Some investors worry about El Paso's border location, but crime rates are actually low (safer than many inland cities). Military families feel comfortable in east El Paso neighborhoods near base.

Texas Benefits: No state income tax, landlord-friendly laws (30-40 day evictions), and prohibited rent control make El Paso operationally easy for investors.

8. Oceanside, California (Camp Pendleton)

Active-Duty Population: 38,000 Marines
Median Home Price: $750,000
BAH (E-5 with dependents): $3,033/month
BAH (O-3 with dependents): $3,771/month

Camp Pendleton (Marine Corps base) creates unique market. Marines deploy frequently (7-month cycles), creating specific housing needs.

Marine Culture: Younger demographics (Marines average age 25 vs. 29 for other services) and frequent deployments mean different tenant behavior. Expect more turnover than Army/Navy markets.

Price Challenge: Like San Diego, Oceanside's coastal location drives prices beyond most investors' budgets. Focus on condos/townhomes ($450,000-$650,000) rather than single-family homes.

Deployment Opportunity: Some landlords offer flexible terms allowing Marines to break leases during deployments (with 30-day notice). This increases turnover but attracts better tenants who value flexibility.

9. Lawton, Oklahoma (Fort Sill)

Active-Duty Population: 25,000
Median Home Price: $185,000
BAH (E-5 with dependents): $1,251/month
BAH (O-3 with dependents): $1,686/month

Fort Sill (artillery and air defense training) offers maximum affordability. Properties in $160,000-$220,000 range provide entry-level investing opportunities.

Pure Military Market: Lawton's economy depends almost entirely on Fort Sill. This creates concentrated demand but also risk if base missions change. However, Fort Sill has been active since 1869—closure is unlikely.

Cash Flow Focus: Low prices and decent BAH rates create 7-8% gross yields. Properties purchased for $180,000 renting at $1,200-$1,400 generate $250-$400 monthly cash flow.

Management Essential: Remote investors need excellent [property management](/blog/property-management-complete-guide). Lawton is 90 miles from Oklahoma City and 2 hours from Tulsa. Build strong local team before buying.

10. Jacksonville, North Carolina (Camp Lejeune)

Active-Duty Population: 47,000 Marines
Median Home Price: $265,000
BAH (E-5 with dependents): $1,584/month
BAH (O-3 with dependents): $2,052/month

Camp Lejeune (Marine Corps base) creates Jacksonville's entire economy. The town exists to serve the base. This means concentrated military rental demand.

Marine Deployment Reality: 2nd Marine Division deploys regularly to Middle East and Pacific. Plan for families staying while service members deploy, requiring lease flexibility.

Market Characteristics: Properties in $240,000-$300,000 range rent for $1,500-$1,950. Focus on neighborhoods in Sneads Ferry, Swansboro, or north Jacksonville for better tenant pools.

Hurricane Factor: Coastal North Carolina faces hurricane risk. Insurance costs $1,800-$3,500 annually depending on flood zone. Factor these expenses into cash flow calculations.

11. Tacoma/Lakewood, Washington (Joint Base Lewis-McChord)

Active-Duty Population: 55,000 (Army and Air Force)
Median Home Price: $525,000
BAH (E-5 with dependents): $2,310/month
BAH (O-3 with dependents): $2,883/month

JBLM (combined Army and Air Force base) creates enormous rental demand. Seattle's high costs push many military families to Tacoma area where BAH goes further.

High BAH Market: Generous BAH rates ($2,300-$2,900) support rents that can cover mortgages on $450,000-$550,000 properties.

Washington Concerns: Tenant-friendly laws, longer evictions (60-90 days), and potential rent control proposals create regulatory risk. Monitor state legislation closely.

Best Strategy: Buy in Lakewood, Spanaway, or Puyallup (Pierce County suburbs) where prices are 10-20% lower than Tacoma proper but still close to base.

12. San Antonio, Texas (Joint Base San Antonio - Fort Sam Houston, Lackland, Randolph)

Active-Duty Population: 80,000+ (across JBSA)
Median Home Price: $295,000
BAH (E-5 with dependents): $1,623/month
BAH (O-3 with dependents): $2,166/month

San Antonio's consolidated joint base (Army, Air Force, Navy medicine) creates Texas's largest military population. Medical training and Air Force basic training ensure permanent mission.

Diverse Markets: Different base locations (Fort Sam Houston northeast, Lackland southwest, Randolph northeast) create multiple submarkets. You can build geographically diversified portfolio within one city.

Texas Advantage: No state income tax, landlord-friendly laws, and reasonable property prices make San Antonio operationally easy. Properties in $270,000-$340,000 range rent for $1,600-$2,100.

Medical Market: Fort Sam Houston hosts Army's medical education. Military physicians and nurses (officers with high BAH) prefer nicer properties in Alamo Heights, Terrell Hills, or Stone Oak.

How to Market to Military Tenants

List on MilitaryByOwner.com: Primary site military families use to search for rentals. Listing costs $50-$75 for 6-month placement. Essential for reaching military market.

Emphasize Military-Friendly Features:

• Pet-friendly (military families often have pets from previous duty stations)
• Flexible lease start dates (PCS orders come throughout year, not just summer)
• Garage for vehicle storage (military members often have tools, deployment gear)
• Proximity to base (highlight "15 minutes to main gate")

Offer Lease Break Clauses: Military clause allows early termination with PCS orders (30-60 day notice, no penalty). This is expected in military markets. Refusing this clause eliminates 80% of potential tenants.

Accept BAH Direct Deposit: Some landlords arrange direct deposit from DFAS (Defense Finance and Accounting Service) to ensure rent payment even during deployments. Requires service member authorization.

Understand Deployment Cycles: When units deploy (6-9 months), spouses stay and maintain housing. Service members continue paying rent from deployment zones. Don't panic if tenant deploys—rent continues.

Military Lease Clauses You Need

1. Military Early Termination Clause

Standard language:

"Tenant may terminate this lease with 30 days written notice if tenant receives PCS orders, deployment orders exceeding 90 days, or separation/retirement from military service. Tenant must provide copy of official orders."

This is non-negotiable in military markets. Every military tenant expects this clause.

2. Deployment Provisions

Clarify what happens during deployments:

"If tenant deploys, rent remains due and payable. Spouse or designee may occupy property. Landlord may not enter property without spouse consent except in emergency."

3. Government Housing Allowance Acknowledgment

Protect yourself if BAH changes:

"Tenant acknowledges rent amount is independent of BAH rates. Changes to government housing allowance do not affect rent obligations under this lease."

BAH rates can decrease if Congress changes them. Make clear rent stays the same.

Common Mistakes in Military Town Investing

Targeting Only Junior Enlisted: E-1 to E-4 ranks have lowest BAH ($1,000-$1,300 often). Many live on base or with roommates. Target E-5+ (sergeants with families) for stable single-family home rentals.

Ignoring Base Mission Stability: Some bases face closure talks (BRAC - Base Realignment and Closure). Research base missions. Training bases, major headquarters, and special operations units rarely close. Small single-mission bases carry risk.

Over-Improving for Market: Military families rotate every 2-4 years. They don't pay premiums for high-end finishes. Clean, functional, and durable beats designer kitchens. Save the granite countertops for civilian luxury markets.

Refusing Military Clause: Landlords who refuse PCS early termination clauses can't compete. Military families will rent from the 50 other landlords who offer flexibility.

Forgetting Security Clearances: Use this advantage. Tell military tenants you'll verify their clearance status. People with Top Secret clearances who handle classified information aren't going to skip rent and destroy property—they'd lose their clearance and career.

Underestimating Turnover: Military turnover is predictable but constant. Budget for re-leasing every 2-3 years instead of 5-7 years in civilian markets. This means more turnover costs but also more opportunities to raise rents.

BAH Rates and Investment Analysis

Understanding BAH is critical to success:

BAH Varies by Rank: E-5 receives $1,470 at Fort Liberty while O-3 receives $1,950. Buy properties aligning with specific rank BAH rates.

With vs. Without Dependents: Married service members or those with children receive higher BAH (30-40% more). Single service members often live on base or with roommates.

ZIP Code Specific: BAH rates vary by duty station. Norfolk's E-5 BAH ($1,998) far exceeds Fort Bragg's E-5 BAH ($1,470) due to local cost of living.

Annual Adjustments: BAH rates adjust January 1 each year based on local rental market surveys. Rates generally increase 2-4% annually, protecting you from inflation.

Check Current Rates: Visit defensetravel.dod.mil/site/bahCalc.cfm to verify current BAH for any base, rank, and dependent status.

Frequently Asked Questions

Do I need to be military to invest near bases?

No. Most military housing investors are civilians. Military experience helps understand the culture but isn't required.

How do I verify someone is actually military?

Request CAC card (Common Access Card - military ID), LES (Leave and Earnings Statement showing active duty status), or call base operator to verify unit assignment. Military personnel expect this verification.

What if tenant gets orders during the lease?

They invoke military clause, provide 30-day notice with copy of orders, and terminate lease. You re-market immediately. This is normal business in military markets.

Should I require security deposits from military tenants?

Yes, standard 1-1.5 months rent. Military service doesn't exempt anyone from deposits. Some landlords waive deposits for O-4+ officers with strong credit, but most require them from all tenants.

Can I evict military tenants for non-payment?

Yes, same process as civilian tenants. Military status provides no eviction immunity. In fact, service members who get evicted face military discipline, so evictions are rare.

Do military renters damage properties more than civilians?

No. Military tenants generally cause less damage than comparable civilian demographics. Military discipline and accountability, plus security clearance concerns, create responsible tenants.

What about VA loans for investment properties?

VA loans only work for owner-occupied properties (1-4 units where you live in one). Military investors buying rentals need conventional financing like civilians.

Tax Advantages in Military Market Investing

Depreciation: Standard 27.5-year residential rental depreciation applies.

Travel Deductions: Visiting properties near bases (especially if you own multiple in different states) generates deductible travel expenses.

Turnover Costs: Higher turnover in military markets means more frequent deductions for cleaning, painting, and marketing costs.

Section 1031 Exchanges: As base missions change, exchange properties from one military town to another while deferring capital gains.

Conclusion: Military Towns Offer Stable, Predictable Returns

The 12 best military base towns for real estate investing in 2026 combine large active-duty populations, generous BAH rates, stable base missions, and reasonable property prices. Fayetteville, Killeen, and Clarksville offer the best balance of affordability and cash flow. Norfolk and San Antonio provide larger market scale and diversification.

Military tenant pools offer advantages civilian markets can't match: guaranteed government housing allowances, background-checked tenant pools, recession-resistant demand, and professional accountability. The predictable turnover and flexible lease requirements are features, not bugs—they allow regular rent adjustments and property improvements between tenants.

For investors seeking stable, predictable rental income backed by the full faith and credit of the U.S. government, military base towns deserve serious consideration.

Ready to find rental properties near major military bases and access America's most stable tenant pool? HonestCasa provides BAH rate data, base mission analysis, and property search tools for all major military markets.

Get started with HonestCasa and access detailed military town investment guides, BAH comparisons, and property listings near all major U.S. military installations.

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