Effectively managing basic housing expenses is a cornerstone of strong financial planning for military families. As a financial advisor with over two decades of experience supporting military households, I’ve seen firsthand how essential it is to create a realistic budget when selecting a place to live—whether you’re renting, buying a home, or residing in privatized base housing.
Many military families are often surprised by how much they actually spend every time they relocate. Hidden costs, regular maintenance, minor renovations, and new household essentials can quickly strain a budget if not anticipated ahead of time.
Key Housing Costs to Plan For
According to the Bureau of Labor Statistics, the average American household spent $21,409 per year on housing in 2020. This includes rent or mortgage payments, utilities, maintenance, furnishings, and other associated expenses. For military families who move frequently, the costs can be even more layered.
Use Your Basic Allowance for Housing (BAH) as a Starting Point
Your Basic Allowance for Housing (BAH) is an excellent benchmark for budgeting. It’s calculated based on your rank, dependency status, and location. However, remember that any housing costs that exceed your BAH—such as utilities, internet, or renters insurance—must be paid out of pocket.
To make informed decisions, use the official BAH calculator available on defensetravel.dod.mil to estimate your monthly allowance.
If You’re Renting
Renters should budget for:
- Monthly rent
- Renters insurance (required in most areas)
- Utilities (electricity, water, trash, internet, gas)
- Exterior maintenance: lawn care, snow removal, pest control
- Pet fees or deposits
- Lease-related costs: renewal fees or early termination penalties
Tip: Carefully review your lease agreement to understand what’s included and what falls under your responsibility. Some landlords may require you to handle annual maintenance tasks like HVAC servicing or pest treatments, which should be factored into your budget.
If You’re Buying a Home
Purchasing a home is a long-term investment but comes with significant financial obligations. Common expenses include:
| Cost Category | Estimated Range / Notes |
|---|---|
| Monthly Mortgage Payment | Based on loan amount, interest rate, and term |
| Property Taxes | Varies by location |
| Homeowners Insurance | Required for property protection |
| Utilities & Monthly Bills | Electricity, water, internet, gas, trash, etc. |
| Maintenance & Repairs | Average $4,000–$5,000/year from experience |
| Renovations/Upgrades | Optional but often necessary |
| HOA or Condo Fees (if any) | Required in some communities |
| Private Mortgage Insurance | If down payment <20% on conventional loans |
| Selling Costs | 5–6% of home value (real estate agent commission) |
Note: Military members may qualify for VA Home Loans, which require no down payment and no private mortgage insurance (PMI). However, VA funding fees still apply and should be budgeted.
If You Live in Privatized Base Housing
Many military families choose privatized base housing for its convenience and structure. In this setup, your full BAH is paid directly to the housing management company, which typically covers routine maintenance and sometimes utilities.
Still, be prepared for personal expenses such as:
- Additional utilities (internet, cable, electricity overages)
- Required renters insurance
- Lawn care or outdoor upkeep
- Non-covered moving-related costs
Prepare for the Unexpected: Financial Protection Strategies
Every move comes with potential surprise costs. These may include:
- Temporary lodging while waiting for housing availability
- Final utility bills from your previous home
- Service transfer or installation fees
- Move-out cleaning costs
- Transport of items not covered by the military
To avoid financial strain, I strongly recommend setting aside:
- An emergency fund of 3–6 months’ worth of basic housing expenses
- A dedicated home repair fund, ideally 1% of your home’s value annually
- Additional insurance to cover damage or liability risks
Utilize Military Financial Planning Resources
Make use of official military tools and services to plan with confidence:
- Military OneSource Budgeting Tools
- Mortgage vs. Rent Calculators
- VA Loan Eligibility Estimators
You can also schedule a free appointment with a Personal Financial Manager (PFM) at your nearest Military & Family Support Center to receive tailored guidance.
Plan Ahead, Don’t React Later
Managing basic housing expenses is not just about securing a roof over your head — it’s a vital part of your overall financial health. Whether you’re renting, owning, or living in military housing, each option carries unique financial responsibilities that require clear planning.
With a well-structured budget, awareness of your entitlements and obligations, and the readiness to handle the unexpected, you can build financial security and a stable living environment for your family—no matter where your next assignment takes you.
Need help crafting your financial plan? Visit your local Military & Family Support Center or schedule a no-cost consultation with a certified military financial advisor.
Judy McCauley 
Mae Sisco