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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 BaseMetroStateMHA [1] Cap RateMHA Area RentMHA PriceActive Duty & FamilyBranch
Robins AFBWarner RobinsGA7.0%$965$9390019500Air Force
Fort DrumWatertownNY6.9%$1238$12170020100Army
Fort JacksonColumbiaSC6.3%$1145$12050015000Army
Fort SillLawtonOK6.3%$822$8700046700Army
Fort BenningColumbusGA6.1%$914$9910086800Army
Sheppard AFBWichita FallsTX5.9%$883$10090016800Air Force
Fort GordonAugustaGA5.8%$1078$11970015800Army
Fort HoodKileenTX5.8%$1097$126500151900Army
Fort Sam HoustonSan AntonioTX5.6%$1294$15250019600Army
Offutt AFBOmahaNE5.5%$1193$14080023300Air Force
Fort KnoxLouisvilleKY5.5%$968$115100100200Army
Fort StewartHinesvilleGA5.4%$1208$14600057300Army
Eglin AFBValparaisoFL5.2%$1382$17110020700Air Force
Fort BraggFayettevilleNC5.2%$940$12090055500Army
Camp LejeuneJacksonvilleNC5.0%$994$12930046100Marine Corps
Fort CampbellHopkinsvilleKY5.0%$997$13470062400Army
Twentynine PalmsInland EmpireCA4.9%$1062$13590017700Marine Corps
Mayport Naval Station and Jacksonville NASJacksonvilleFL4.8%$1251$17470076700Navy
Cherry Point MCASHavelockNC4.8%$1064$15320035200Marine Corps
Langley AFBNewport NewsVA4.7%$1378$18950018000Air 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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