PCS and your house: what renting it out really costs and builds

Renting out your home after a PCS usually costs you something every month and builds something every month too. The question is how much of your out-of-pocket money is becoming equity in your own name, and this page shows you how to find that number.

At a glance

• Rent after the manager's cut and vacancy, minus the mortgage and a maintenance reserve, is your monthly gap or surplus.
• Part of every mortgage payment is principal. That part is equity in your name, not an expense.
• Incoming PCS families are a natural tenant market near a base.
• Rental income is taxable, your homeowner policy has to become a landlord policy, and your VA entitlement stays tied to the house while you keep it.

Who this is for: A NAS Lemoore sailor with PCS orders who owns a home in Kings County and is deciding whether to sell it, rent it out or leave it empty.

Reviewed by Theron Morgan, CEO and founder, Avidity Capital Inc., a registered investment adviser, on 2026-10-07.

Reading your result

The monthly figure is the gap you cover from your paycheck, or the surplus the house pays you, after the manager's share and the months you expect it to sit empty. The principal figure is the part of the mortgage payment that reduces what you owe in year one. Dividing the two tells you how much of your out-of-pocket money is really a transfer into equity you own, and how much is a cost.

A house that costs you something every month can still be a good decision if most of that money is principal. A house that costs you a lot every month with little principal is a decision to look at hard, especially with the vacancy and repair risk that comes with owning a home from another state.

Base housing or off base at the new station

Your BAH at the new station is set by that station's housing area and is paid whether you rent or buy there. Living in base housing means the allowance is taken for the housing; living off base means you keep the allowance and pay rent or a mortgage yourself. Which is better depends on the local market, and the keep-your-home tool in the app prices your BAH at the station and report date you pick.

Finding a tenant

Near a base, the incoming PCS crowd is a natural market: families arriving with orders, a known allowance, and a need to find a place quickly. A property manager who works that market earns part of their fee here. Screen the same way you would anywhere, and put the lease in writing.

Landlord insurance replaces your homeowner policy

A standard homeowner policy covers a home you live in. Once a tenant moves in, you need a landlord policy, which covers the structure and your liability as an owner but not the tenant's belongings. Tell your insurer before the tenant arrives, not after a claim. The tenant's own renters insurance covers their things.

Your VA loan entitlement stays tied to the house

If you bought with a VA loan, the entitlement used for that loan stays tied to the house while the loan is outstanding. You may still have remaining entitlement for a purchase at the next station. Entitlement is generally restored once the loan is paid in full and the home is sold. There is also a one-time restoration if you pay off the loan and keep the home. If a buyer assumes your VA loan, your entitlement stays tied up unless the buyer is an eligible veteran who substitutes their own. The specifics are in federal law and in your Certificate of Eligibility; the lender at the new station will read both.

Taxes: rental income, expenses and the sale later

Rental income is taxable, and the expenses of running the rental, including mortgage interest, property tax, insurance, the manager's fee, repairs and depreciation, are deducted against it on your return. Many rentals show a paper loss while still putting principal in your pocket.

When you sell, the gain on a home you lived in can be excluded from tax if you meet the ownership and use test. For members on qualified official extended duty, federal law lets you suspend that test for up to ten years, so a home you had to leave on orders can still qualify years later. One catch: the depreciation you took while the home was a rental is taxed when you sell, even if the gain itself qualifies for the exclusion. The rule has conditions, so talk to a tax professional before you count on it.

What the app does

The keep-your-home tool prices your BAH at the next station and report date you pick, compares it to the payment, taxes and insurance on your property record, and shows what the home would net as a rental: the felt cost per month, the real cost after principal, and the tax view, with every default labeled.

Questions people ask

This page is education, not individualized investment, tax, legal or insurance advice. It names no products, funds or allocations and carries no client stories. Where a document or a policy is needed, an estate attorney or a licensed insurance agent is the person who prepares it. Avidity Capital Inc. drafts no legal documents and receives no commission or referral fee from insurance, estate attorneys, mortgage lenders or real estate agents. Its compensation is the member's subscription and, for members who choose it, an advisory fee for managing assets; see Form CRS and Form ADV Part 2A. Avidity Capital Inc. is a registered investment adviser.