Military PCS Orders: Should You Rent or Sell Your Colorado Springs Home?

Getting PCS orders is part of military life—but when you own a home in Colorado Springs, those orders bring a tough decision: do you sell your house or rent it out? For many service members stationed at Fort Carson, Peterson Space Force Base, Schriever Space Force Base, or the Air Force Academy, this isn't just a financial question. It's about your future.

Here's what makes Colorado Springs different: people come back. With over 80,000 veterans and active-duty personnel already living here, this isn't just another duty station—it's a retirement destination. Many military families who PCS out of Colorado Springs return years later after they hang up the uniform. That retirement factor changes everything about whether you should sell or hold onto your property.

Let's walk through the decision with the Colorado Springs market and military lifestyle in mind.

Understanding How Your PCS Orders Affect Your Decision

CONUS vs OCONUS: The Property Management Reality

Where you're headed matters more than you might think.

CONUS Assignments

Staying stateside means you're within a day's travel if something critical happens with the property. You can coordinate in-person walkthroughs between tenants or handle major decisions face-to-face with your property manager. If you decide to sell later, you can fly back for inspections or closing without burning leave for international travel.

Even so, don't fool yourself into thinking you'll manage it yourself—a property manager is still essential, but at least you have the option to be involved when it matters.

OCONUS Assignments

Germany, Korea, Japan, or even Hawaii means you're managing everything remotely with significant time zone gaps. A 3 AM emergency call about a burst pipe isn't just inconvenient—it's happening while you're at work on the other side of the world. Property decisions require absolute trust in your management company since in-person oversight is impossible.

The flip side: OCONUS assignments often make renting more attractive because you can't easily return to list and sell, but you can return to a home you've kept.

The Colorado Springs Retirement Factor

Here's what makes this decision different in Colorado Springs: many service members plan to come back. If you know—or even suspect—you want to retire here, that changes everything:

• Keeping your home as a rental preserves your future retirement property while building equity through tenant payments
• You lock in today's price instead of buying back into the market at retirement when prices will likely be higher
• Your rental income helps pay down the mortgage so it's paid off (or nearly paid off) when you return
• The strong military rental market here means consistent tenant demand, even if you're gone for 10-15 years through multiple duty stations

  
  

We’ve seen it happen countless times: a captain sells their Stetson Hills home when they PCS to Fort Hood, then returns as a retiring lieutenant colonel 12 years later only to find that same neighborhood has appreciated 30-40%. That $375,000 home they sold is now $520,000—and they’re priced out of the area they loved. Meanwhile, their friend who kept their home as a rental? They’re moving back into a nearly paid-off house in their preferred neighborhood. Keeping the property—even through multiple PCS cycles—often proves to be the smarter long-term play.

The 2-4 Year Assignment Window

Most PCS assignments last 2 to 4 years, creating a planning challenge for homeowners. This timeline is too short to build significant equity from appreciation if you bought recently, but long enough that you can't just leave the property vacant. It's also long enough for the market to shift—home values could rise significantly (helping you if you rent) or flatten (making selling now more attractive).

Decision Framework Based on Career Timeline:

Early Career (First or Second Assignment):

• You might PCS 4-6 more times before retirement

• Consider whether holding Colorado Springs property fits your long-term strategy

• Selling now might free up capital for your next duty station

• But if Colorado Springs is your "forever home" goal, starting the equity building now pays off

Mid-to-Late Career (15+ Years):

• Retirement is on the horizon—is Colorado Springs where you want to land?

• Keeping the home means you're building toward that retirement goal with every mortgage payment

• You've likely built more equity, making it easier to weather rental market fluctuations

Near Retirement (18-20 Years):

• Strong argument for keeping the property—you might be back in 2-4 years

• Rental income bridges the gap until you return permanently

• Selling now means competing to buy back in at retirement prices

Timeline Considerations: When Your Orders Drop

Your orders can arrive with 30 days' notice or 120 days—and that timing affects your options:

Short Notice (30-60 days):

• Selling is rushed—you might leave money on the table in a quick sale

• Renting gives you more flexibility—get a property manager lined up and find a tenant even after you PCS

• You can make the rental decision now and re-evaluate selling later if needed

Longer Notice (90-120 days):

• Time to get a proper comparative market analysis and seller's net sheet

• Ability to prepare the home properly for either sale or rent

• Can interview multiple property management companies and choose the best fit

• Opportunity to make strategic repairs that maximize rental income or sale price

The Financial Reality Check

Before you make any decision, you need to understand the real costs—not the optimistic estimates.

Cost to Sell

Selling isn't free. Between agent fees, closing costs, title insurance, and the inevitable repairs or credits that come up during inspection, you're typically looking at costs in the high single digits as a percentage of your sale price.

If you bought in 2022 or 2023 when interest rates were climbing and prices were high, you might have minimal equity. This is the "thin equity trap"—after paying agent commissions, closing costs, and inspection repairs, you could actually need to bring money to closing just to get out of the house. For example, if you owe $385,000 and your home is worth $395,000, that $10,000 difference might only net you $2,000-5,000 after selling costs. For recent buyers, this reality often tips the scale toward renting, at least until you build more equity.

Cost to Rent

Renting sounds simple until you run the real numbers. Here's what actually comes out of that monthly rent check:

• Property management fees: 8-12% of monthly rent

• Maintenance reserves: Plan for 1% of home value annually

• Vacancy costs: Even in Colorado Springs' hot market, expect some turnover gaps

• Insurance increases: Landlord policies cost more than homeowner policies

• HOA fees, property taxes, and utilities (if you cover any)

Note: While many service members initially think “rent will cover my mortgage,” remember that your BAH stops when you PCS. The rent needs to cover your actual mortgage payment plus all these additional costs—without your BAH subsidizing the difference.

Critical question: After all these expenses, does the rent truly cover your mortgage payment, or will you be writing a check every month to cover the difference?

In Colorado Springs, 3-bedroom homes typically rent for $1,800 or more, and the market is strong enough that many landlords do achieve positive cash flow or break even. But you need to run the numbers for your specific situation with a property manager before making assumptions.

Note: This is an example scenario. Your actual numbers will vary based on your specific property, mortgage, and local rental rates.

Cash Flow Analysis: The Make-or-Break Question

Get a rental analysis from a local property management company. Ask for a realistic assessment that includes:

• Expected monthly rent for your specific property

• All management fees and typical maintenance costs

• Estimated vacancy rate

• Your actual mortgage payment (including taxes and insurance)

If the numbers show you'll be writing a $200-500 check every month to cover the shortfall, you need to ask yourself: Can your budget handle that? For how long? And is the long-term equity building worth the monthly cost?

For many Colorado Springs homeowners planning to return, the answer is yes—especially when you factor in loan paydown and appreciation. But for others, especially those with thin equity or tight budgets at the next duty station, selling might be the only realistic option.

Making the Decision: Where Do You Go From Here?

By now, you should have a clearer picture of how your PCS orders, career timeline, and financial situation affect the rent-versus-sell decision. But we've only scratched the surface.

Here are the critical questions you need to answer before deciding:

1. Do you plan to return to Colorado Springs? Even if you're not certain, what's your gut feeling?

2. Can your budget handle potential negative cash flow? What if the property sits vacant for 60 days?

3. Do you need to buy at your next duty station? If so, do you have sufficient VA loan entitlement available?

4. What's your risk tolerance? Can you handle the uncertainties of long-distance property ownership?

5. Is this home suitable as a long-term rental? Is it in a desirable neighborhood for military families?

The Two Paths Forward

Now that you understand the financial realities, let's briefly outline when each option makes sense. (We'll go much deeper in future articles.)

 When Selling Makes Sense

Selling is often the right call when:

- You need immediate cash for your next location

- Your equity is thin, and you can't afford monthly rental shortfalls

- The home needs expensive repairs you can't afford before renting

- You don't want landlord responsibilities from afar

- Colorado Springs isn't your long-term retirement destination

- **You need your full VA loan eligibility for your next duty station** (we'll explain this critical factor next week)

 When Renting Makes Sense

Renting is often the smarter long-term play when:

- You plan to return to Colorado Springs after retirement

- You can afford the potential negative cash flow

- You have remaining VA loan entitlement to buy at your next location (or don't need to buy there)

- The rental numbers work based on realistic analysis

- You're comfortable with professional property management

- Building long-term wealth through real estate aligns with your goals

The decision isn't always obvious, and the VA loan entitlement issue (which we'll cover in depth next week) can completely change the equation.

In the coming weeks, we'll dive deeper into each of these paths:

• Next week: Understanding VA loan entitlement and how it affects your ability to buy at your next duty station—this is the #1 issue that catches military families by surprise
• Week 3: A complete guide to selling your Colorado Springs home on PCS orders, including timeline strategies and choosing the right agent
• Week 4: Everything you need to know about renting your home, choosing property management, and what to expect as a long-distance landlord
• Week 5: Legal protections, tax benefits, and local resources every military homeowner should know about

Don’t make this decision alone. Whether you’re leaning toward selling or renting, getting professional guidance tailored to your specific situation can save you thousands of dollars and countless headaches.

Contact Springs Homes for Rent at 719-359-8998 for a no-obligation consultation. We specialize in helping military families navigate PCS decisions in Colorado Springs—because we understand this isn’t just about real estate. It’s about your future.

Colorado Springs will be here when you’re ready to come home. Let’s make sure you’re set up for success, no matter where the military sends you.