Military Housing: DOD Should Address Critical Supply and Affordability Challenges for Service Members
Fast Facts
Due to rising costs, service members and their families are increasingly feeling the pinch of a competitive housing market.
The Department of Defense relies on the private sector to house the majority of its service members. But it doesn't track how limited housing supply and affordability issues have affected personnel. Service members told us about challenges they face despite receiving housing allowances. For example, some have long commutes, leave families behind in other states, and work 2 jobs to afford housing.
Our recommendations to DOD include developing a comprehensive list of areas with limited affordable housing, and more.
On-Base Home in Hawaii, Managed by a Private Company
Highlights
What GAO Found
The Department of Defense (DOD) does not use its housing assessments to identify a comprehensive list of areas where service members and their families are most severely affected by housing supply or affordability challenges—or critical housing areas. DOD's policy is to rely primarily on the private sector to house service members. DOD officials provided GAO with some information about areas with limited housing availability from multiple sources within the department. However, the information provided was not comprehensive, and the analyses do not account for factors such as unavailability of units in areas with high numbers of vacation rentals. By identifying a comprehensive list of critical housing areas, accounting for the unique circumstances of various areas, DOD would be better able to make informed housing decisions.
DOD collects some information but does not routinely assess the negative financial and quality-of-life effects that limited supply or unaffordable housing has on affected service members. During GAO visits to selected DOD sites, some service members reported having to take on debt or commute long distances to afford quality housing. By consistently obtaining feedback from service members, DOD would be more aware of the extent of the effects of limited supply or unaffordable housing on its service members and be better positioned to identify critical housing areas.
DOD encourages coordination with communities near military installations on local housing issues, but DOD does not have clear guidance on how installation leadership should coordinate with local communities on housing. Accordingly, GAO found differences in the processes for and the extent to which installations had pursued coordination to address housing challenges. GAO's statistical analyses found that counties with higher military populations were associated with having higher median rents. Further, the majority of respondents (67 percent) to GAO's survey of about 150 local government officials from selected locations near military installations said they believed they had somewhat or very unaffordable housing (see figure). If DOD were to provide clearer guidance on coordination with local communities, it could lead to better partnerships that could improve housing affordability and availability for service members and other residents within local communities.
Survey Response Frequencies from Local Government Officials Regarding Overall Housing Supply and Affordability
Why GAO Did This Study
DOD's policy is to ensure that service members and their families have access to affordable, quality housing. About two-thirds of service members in the U.S. live off base in local communities. In recent years, the country has faced rising housing costs and increasingly competitive housing markets.
The Joint Explanatory Statement accompanying the National Defense Authorization Act for Fiscal Year 2022 includes a provision for GAO to review military housing in areas with limited housing supply. Among other issues, this report examines the extent to which DOD (1) assesses the availability of private-sector housing for service members; (2) assesses the potential financial and quality-of-life effects of limited supply or unaffordable housing on service members; and (3) coordinates with communities surrounding installations on local housing issues.
GAO reviewed DOD policies and documentation; interviewed DOD housing officials; held discussion groups with service members; performed statistical analyses; and conducted a survey of local government officials in areas near military installations.
Recommendations
GAO is making six recommendations, including that DOD develops a comprehensive list of critical housing areas, obtains feedback on effects on service members living in such areas, and updates guidance on coordinating with local communities. DOD concurred with these recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should ensure that the Assistant Secretary of Defense for Energy, Installations, and Environment clarifies the Office of the Secretary of Defense's (OSD) role in oversight of the military services' Housing Requirements and Market Analysis (HRMA) process in guidance to help ensure that the military services conduct HRMAs in a timely manner and that DOD submits to Congress required lists of planned HRMAs for each fiscal year. (Recommendation 1) |
DOD concurred with this recommendation. In March 2026, DOD issued guidance in a memorandum "Interim Guidance on the Housing Requirements Determination Process" that clarifies OSD's role in the HRMA process, with the Chief Housing Officer designated responsible for ensuring that the military services conduct HRMAs. The guidance also emphasizes the responsibility of the military departments to provide a list of their planned HRMAs in their budget materials each year. As this new guidance clarifies roles for oversight of and conducting the HRMA process, this recommendation has been addressed.
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| Department of Defense |
Priority Rec.
The Secretary of Defense should ensure that the Assistant Secretary of Defense for Energy, Installations, and Environment, in coordination with the Under Secretary of Defense for Personnel and Readiness, performs a structured analysis to develop a comprehensive list of critical housing areas. In conducting analysis to develop this list, DOD should consider the unique characteristics of a location, such as vacation rental areas. (Recommendation 2) |
DOD concurred with this recommendation. In response to our recommendation, DOD issued guidance in a memorandum "Interim Guidance for Designated Critical Housing Areas" in March 2026 that provides indicators of critical housing areas (CHA) that should be considered by the Chief Housing Officer. These indicators include the availability of housing, housing waitlists, and short-term vacation rentals. Officials stated they are finalizing the list of designated critical housing areas and estimate completing these actions by May 2027. We will continue to monitor steps taken by DOD to address this recommendation.
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| Department of Defense | The Secretary of Defense should ensure that the Assistant Secretary of Defense for Energy, Installations, and Environment, in coordination with the Under Secretary of Defense for Personnel and Readiness, regularly updates the list of identified critical housing areas. (Recommendation 3) |
DOD concurred with this recommendation. DOD provided a corrective action plan in March 2026 that states that the department will update, as needed, the list of identified critical housing areas by July 2027. We will continue to monitor steps taken by DOD to address this recommendation.
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| Department of Defense | The Secretary of Defense should ensure that the Assistant Secretary of Defense for Energy, Installations, and Environment, in coordination with the Under Secretary of Defense for Personnel and Readiness and the military services, obtains and uses feedback on the financial and quality-of-life effects of limited supply or unaffordable housing on service members, through the Status of Forces survey and other service or installation-specific feedback mechanisms. (Recommendation 4) |
DOD concurred with this recommendation. DOD incorporated questions concerning the physical condition, affordability, and availability of housing into the 2024 Status of Forces survey to identify and evaluate the financial and quality-of-life challenges associated with living in areas with limited or unaffordable housing, according to documentation we reviewed. Officials also stated in March 2026 that the Status of Forces survey, "Interim Guidance for Community Engagement," "Interim Guidance on the Housing Requirements Determination Process," and "Interim Guidance for Designated Critical Housing Areas" will provide DOD with mechanisms to collect feedback on the financial and quality-of-life effects of limited supply or unaffordable housing on service members. These are important steps for obtaining feedback. We have yet to see documentation of how DOD has used the feedback in developing a list of critical housing areas or for developing plans to address challenges in those areas, for example. Officials estimate completing these actions by May 2026. We will continue to monitor steps taken by DOD to address this recommendation.
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| Department of Defense | The Secretary of Defense should ensure that the Assistant Secretary of Defense for Energy, Installations, and Environment, in coordination with the Under Secretary of Defense for Personnel and Readiness and the military services, develops a plan for how the department can respond to and address the financial and quality-of-life effects in critical housing areas once those areas are identified, such as through feasible solutions to increase housing supply or through additional strategies such as alternative compensation. (Recommendation 5) |
DOD concurred with this recommendation. DOD provided a corrective action plan in March 2026 that states that the department will develop an action plan to address the financial and quality-of-life challenges associated with living in a critical housing area. In March 2026, DOD issued guidance in a memorandum "Interim Guidance for Designated Critical Housing Areas" that includes actions the Chief Housing Officer can take to address challenges in critical housing areas, such as making exceptions to housing assignment policies and accelerating military construction. The department is in the process of finalizing the list of designated critical housing areas. Officials estimate completing these actions by July 2027. We will continue to monitor steps taken by DOD to address this recommendation.
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| Department of Defense | The Secretary of Defense should ensure that the Assistant Secretary of Defense for Energy, Installations, and Environment provides updated guidance to the services on how installations should coordinate with local communities, including clearly defining the roles and responsibilities of installation commanders and military housing offices in addressing housing needs. (Recommendation 6) |
DOD concurred with this recommendation. In response to our recommendation, DOD issued guidance in a memorandum "Interim Guidance for Community Engagement" in March 2026 that asks the military departments to issue guidance clearly defining the roles and responsibilities of installation commanders and military housing offices. Further, it states that the guidance should require routine engagement with local community officials to discuss military and community housing needs and actively pursue rental partnership programs with housing developers, landlords, and owners. The guidance also requires a heightened level of coordination in housing markets that will be designated as critical housing areas. With this new guidance, this recommendation has been addressed.
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