The Best Military Towns for Investing

August 29, 2016

Investors are eyeing military towns as a great place to invest in a single-family rentals.

“Acquiring [single-family rentals] near military bases may be one of the best real estate investment strategies, for a variety of reasons,” says Don Ganguly, CEO of HomeUnion. “For example, military service members are employed by the federal government, which provides greater employment certainty than the private sector. Demand from service men and women is stable, particularly as the military limits overseas deployments following two protracted wars. In addition, the military compensates service members based on market-rate rents, rank and dependents, giving landlords incentive to lease to military personnel and their families.”

HomeUnion identified the top military towns for investing in single-family rental properties based on average cap rates. The towns must have a military base with a population of active duty personnel and their families of 15,000 or higher.

The study finds that the majority of the single-family rentals near military bases that offer the highest returns tend to be primarily located in the South and Midwest, says Steve Hovland, director of research for HomeUnion.

The following metro areas are the best places to invest in housing near military bases, according to HomeUnion’s analysis:

  • Robins AFB, Warner Robins, Ga.: $965 (military housing area rent)
  • Fort Drum, Watertown, N.Y.: $1,238
  • Fort Jackson, Columbia, S.C.: $1,145
  • Fort Sill, Lawton, Okla.: $822
  • Fort Benning, Columbus, Ga.: $914
  • Sheppard AFB, Wichita Falls, Texas: $883
  • Fort Gordon, Augusta, Ga.: $1,078
  • Fort Hood, Killeen, Texas: $1,097
  • Fort Sam Houston, San Antonio, Texas: $1,294
  • Offutt AFB, Omaha, Neb.: $1,193

Source: “The Best Military Towns Named for Investing in Rental Homes,” RISMedia (Aug. 27, 2016)