You just received PCS orders.

Now the question hits fast:
Should I rent or sell when I PCS?

If you’re an active-duty homeowner, this is one of the most important financial decisions you’ll make during your military career. Rent or sell when you PCS is a big consideration, and if you’re a first-time VA buyer wondering whether buying even makes sense, this is the exact conversation you should be thinking about before you purchase.

The answer is not emotional.
The answer is not what your neighbor did.
The answer is in the math — and in your long-term plan.

Let’s break it down clearly.

Rent or Sell When You PCS: The Two Core Options

When you own a home and receive PCS orders, you generally have two choices:

• Sell the property and walk away with your equity
• Convert the home into a rental and hold it long term

Both options are valid. The right choice depends on your numbers, your risk tolerance, and your long-term goals.

Do not let myths about the VA Loan impact your decision, you can use your VA Loan more than once.

Military families who receive new orders often have additional flexibility, which we explain in our guide on how to use your VA loan after a PCS.

Example: Running the Numbers in 2026

Let’s say:

You’ve lived in your home for a few years at your current duty station.
If you sold today, you would walk away with approximately $20,000 after the sale.

Your current mortgage payment (principal, interest, taxes, insurance) is $2,200 per month.
Market rent for similar homes in your area is approximately $2,450 per month.

That gives you a $250 per month positive cash flow before property management and maintenance reserves.

Now let’s look at what that means annually:

$250 × 12 months = $3,000 per year

That $3,000 represents income generated by keeping the home as a rental.

Now compare that to the $20,000 you could walk away with if you sold.

$3,000 ÷ $20,000 = 15% return on equity

That means, based purely on cash flow, you’re earning a 15% annual return on the $20,000 you would otherwise pull out of the property.

Important notes:

• This is before property management costs
• This assumes consistent occupancy
• This only reflects the current equity position
• It does not account for future appreciation

If you factor in appreciation over time, the return could be higher. If you add management fees, it could be lower.

The most important question becomes:

Can you take that $20,000 and invest it somewhere else that would reliably return more than what the property is producing?

If the answer is no, holding the rental may make financial sense.

If the answer is yes — and you are comfortable with that investment strategy — selling and redeploying the capital could be smarter.

This is how you remove emotion and let the numbers guide you.

What This Means for First-Time VA Buyers

If you haven’t bought yet, this is why buying strategically matters.

Owning creates optionality. Renting does not.

When you rent as a tenant, your housing payment goes entirely toward rent. You build no equity, no appreciation exposure, and no leverage for the next move.

When you own, you create the possibility of:

• Selling and walking away with equity
• Renting and building long-term value
• Reusing your VA loan strategically
• Preserving flexibility at your next base

Buying does not guarantee wealth. But it gives you options that renting simply cannot.

First, get familiar with your VA Loan Entitlement.

Tax Considerations When Selling After PCS Orders

One major factor many military families overlook is capital gains tax.

Primary residences are generally exempt from taxable gains as long as you have occupied the home for at least two of the last five years. This is commonly referred to as the “2-out-of-5-year rule.”

Under current tax law, you may be able to exclude up to:

• $250,000 of gain if single
• $500,000 of gain if married filing jointly

Military members may also qualify for extensions to that five-year window while serving on official orders.

This means timing matters.

If you convert your home to a rental and hold it long enough that you no longer meet the occupancy requirement, you could lose access to that primary residence exclusion and owe capital gains taxes on appreciation when you eventually sell.

Because of that, it’s important to re-evaluate the numbers on your home before you would cross that five-year window and potentially owe capital gains. The math that made sense in year one of renting may not make sense in year six.

This is where coordination with a qualified tax professional is critical.

The Reality of Property Management

Holding a rental is not passive.

You must consider:

• Maintenance costs
• Vacancy periods
• Tenant screening
• Lease enforcement
• Emergency repairs

If you are staying stateside, even with time zone differences, some owners choose to self-manage to preserve the full $250 monthly spread.

If you are going overseas, self-management becomes much riskier.

Serious maintenance issues often require prompt response. Delayed handling of habitability concerns can create legal exposure. When stationed overseas, having a professional property manager is typically the safer approach — but that may reduce your monthly margin by 8–10%.

Using management in our example might reduce the $250 monthly spread significantly, potentially bringing the property closer to break-even.

This is why running realistic numbers matters.

The “You Can’t Get It Back” Factor

Once you sell a home, you cannot undo that decision.

If you are uncertain, one strategic approach is:

Rent the property for one year.
Re-evaluate before making a permanent decision.

This allows you to gather real rental data instead of guessing.

You do not want regret.
You want clarity.

And often, doing the math makes the decision far less emotional.

When Selling May Be the Better Choice

Selling may make sense if:

• Your cash flow would be negative
• The rental market is soft
• You do not want landlord exposure
• You need the equity for another strategic investment
• You are nearing the end of the primary residence exclusion window

There is nothing wrong with choosing liquidity and simplicity.

When Renting May Be the Better Choice

Renting may make sense if:

• You have positive cash flow
• Your return on equity is strong
• You believe in long-term appreciation
• You are comfortable with landlord risk
• Your timeline still supports the primary residence tax exclusion

The right answer is personal — but it should be mathematical.

The Bottom Line

Asking yourself, “Should I rent or sell when I get PCS orders in 2026?”

The answer depends on:

• Your equity position
• Your monthly spread
• Your tax timing
• Your risk tolerance
• Your long-term plan

When you remove emotion and evaluate the numbers, the decision often becomes clear.

If your home is near Luke Air Force Base or anywhere in the Phoenix Metropolitan area, we can help you run your numbers carefully and develop a custom PCS plan built around your timeline. Contact CalzaCo for a consultation or start with this PCS Checklist.

And if your home is somewhere else, we can connect you with a qualified professional in your area so you can evaluate your options with confidence.

Every PCS move should build on the last — not reset it.