Rent or Buy at Your New Duty Station? Do the BAH Math First.
Jeanette Spain
21-year Air Force veteran. Central Texas Realtor.
The short answer
In several base-adjacent Texas markets, available rentals are running above the BAH floor for mid-grade enlisted and junior officer ranks. The equity column is building faster than the rent column gives back. But the math is specific to your market, your rank, and your income. Here is how to run it.
Why BAH is the wrong starting number
BAH covers median housing costs for your rank and dependency status in a given zip code. It is a baseline reimbursement, not a budget cap. In Georgetown, Round Rock, and base-adjacent Killeen markets, rents for a 3-bedroom property have been at or above the E-6 BAH floor. That gap comes out of your pocket unless you size down or shop carefully.
The three numbers to compare
- Total cost of ownership: PITI (principal, interest, taxes, insurance) plus HOA if applicable — use today's rate, not a best-case scenario
- Comparable rental cost: what an equivalent property rents for in the same neighborhood, not what you'd ideally pay
- Your BAH rate: look it up by rank, dependency status, and zip code on the DOD BAH calculator — this changes by location
In Killeen and Copperas Cove, rents and purchase prices have compressed since 2022 in a way that makes the break-even point inside 24 months in many scenarios. That's well within a typical 3-year tour — especially if you plan to keep the property as a rental when you PCS again.
Where buying typically wins
- Rental supply is thin and vacancy rates are below 4%
- Comparable rentals run 15% or more above your BAH for your rank
- You expect to stay 2 or more years and can convert to rental if you PCS again
- Property values have been stable and the market isn't in active correction
Where renting makes more sense
- Your tour is under 18 months and you have no intention of keeping the property
- The market is actively correcting and buying means absorbing near-term depreciation
- Your total buying costs exceed what rent would cost over the tour, with no rental conversion plan
I give every client a one-page comparison sheet that runs the numbers for their specific situation. It takes 15 minutes to fill out once you have your BAH rate and a target price range. If you want one, schedule a call and we'll do it together.
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