Rachel and John Zohn are hopping from their home on an Air Force Base in Mississippi this summer to one in Montgomery, AL.
Although Montgomery has a neighborhood they like, it would cost more to live there than on base — even after they factor in their “Basic Allowance for Housing.” Landlords are often other military families who know precisely how much the local BAH is for various ranks and will charge that amount for rent, Rachel said.
Buying a home in Montgomery might make more financial sense on a monthly basis, she said, but not when you figure that, like most military families, the Zohns don’t expect to be there much longer than three years.
“I’ve been married eight years, and I have two children, and I’d love to buy a house and have a home to decorate,” Rachel said. “But it’s never worked out for us, mostly because, financially speaking, it’s not really the smart choice.”
It’s a widespread quandary for people in the military.
Nationally, service members can expect to pay 31.5 percent of their income toward mortgage payments — twice what civilians pay — according to new Zillow research. That’s all branches of the military combined and includes the BAH for those not living on base.
Renting is even more expensive. Members of the military can expect to pay 41.6 percent of their income on rent payments, compared with 30 percent for civilians nationwide, Zillow research found.
The situation varies considerably depending on where they’re based.
Service members living off base in San Diego should expect to pay a whopping 65.5 percent of their income on mortgage payments or 59.6 percent on rent. At Fort Hood, TX, they’d pay just 15.1 percent of their income toward a mortgage or 29.1 percent on rent — more in line with national averages for civilians.
Although the Zohns wanted to live in their favorite Montgomery neighborhood, they’re not fretting about the base housing. In Mississippi, their home on base has been a “standard suburban kind of home,” Rachel said — 3 bedrooms and about 2,100 square feet.
“In Montgomery, it could be even bigger, because there are historic homes on base,” she said.
For more information, check out Zillow Real Estate Research.
Related:
- Joining Forces Shines Light on Veteran Homelessness
- Rents Rising Faster Than Home Values
- Even Inexpensive Homes Too Pricey for Many Workers
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