HomeUnion Names the Best Military Towns for Investing in Rental Homes

Homes near military bases in the South and Texas offer the best returns for single-family rental investors (SFRs).


IRVINE, Calif., Aug. 24, 2016 – HomeUnion, an online real estate investment management firm, has released new data on the best military towns for investing in single-family rental (SFR) properties based on average cap rates, which are the relationship between an investment property’s net operating income (rents minus expenses) in the first year of ownership and the purchase price of the property. To be included in the list, military bases must have a population of active duty personnel and their families of 15,000 or higher.

SFRs near Warner Robbins, Ga., a U.S. Air Force Base which supports 19,500 active service members and family, have average cap rates of 7 percent. Meanwhile, rental housing in Watertown, N.Y., where the Fort Drum Army base is located, is also an excellent investment with cap rates of 6.9 percent on average. SFRs in Fort Jackson in Columbia, S.C., have average cap rates of 6.3 percent.

“The military bases included in this study are located throughout the United States,” explains Steve Hovland, director of research for HomeUnion. “SFRs near military bases that offer the highest returns, however, are primarily located in the South and Midwest,” he adds. One California base made the list – Twentynine Palms, a Marine Corps branch with 17,700 people in the Inland Empire.

“Acquiring SFRs near military bases may be one of the best real estate investment strategies, for a variety of reasons,” explains 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,” he adds.
“The transient nature of serving in the military also means that there is a substantial population of government workers that prefer to rent rather than buy, driving demand over the short and long term,” adds Hovland.

Here’s a complete list of the best military towns for investing in SFRs:

Military Base Metro State MHA [1] Cap Rate MHA Area Rent MHA Price Active Duty & Family Branch
Robins AFB Warner Robins GA 7.0% $965 $93900 19500 Air Force
Fort Drum Watertown NY 6.9% $1238 $121700 20100 Army
Fort Jackson Columbia SC 6.3% $1145 $120500 15000 Army
Fort Sill Lawton OK 6.3% $822 $87000 46700 Army
Fort Benning Columbus GA 6.1% $914 $99100 86800 Army
Sheppard AFB Wichita Falls TX 5.9% $883 $100900 16800 Air Force
Fort Gordon Augusta GA 5.8% $1078 $119700 15800 Army
Fort Hood Kileen TX 5.8% $1097 $126500 151900 Army
Fort Sam Houston San Antonio TX 5.6% $1294 $152500 19600 Army
Offutt AFB Omaha NE 5.5% $1193 $140800 23300 Air Force
Fort Knox Louisville KY 5.5% $968 $115100 100200 Army
Fort Stewart Hinesville GA 5.4% $1208 $146000 57300 Army
Eglin AFB Valparaiso FL 5.2% $1382 $171100 20700 Air Force
Fort Bragg Fayetteville NC 5.2% $940 $120900 55500 Army
Camp Lejeune Jacksonville NC 5.0% $994 $129300 46100 Marine Corps
Fort Campbell Hopkinsville KY 5.0% $997 $134700 62400 Army
Twentynine Palms Inland Empire CA 4.9% $1062 $135900 17700 Marine Corps
Mayport Naval Station and Jacksonville NAS Jacksonville FL 4.8% $1251 $174700 76700 Navy
Cherry Point MCAS Havelock NC 4.8% $1064 $153200 35200 Marine Corps
Langley AFB Newport News VA 4.7% $1378 $189500 18000 Air Force

[1] MHA (Military Housing Area): MHAs are a set of zip codes set aside by the government to compute BAH (Basic Allowance for Housing). BAH is an allowance determined by the U.S. Dept. of Defense prescribed by geographic duty location, pay grade, and dependency status. It provides uniformed service members equitable housing compensation based on real estate prices in local civilian housing markets when government quarters are not provided.
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About HomeUnion
HomeUnion is an online real estate investment management firm. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 18 locations. HomeUnion’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.

Media Contact:
Stacey Corso

Communications Manager, HomeUnion
stacey.corso@homeunion.com
415.672.6460

 

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