FORT CARSON — Despite a government housing allowance, Fort Carson soldiers are grappling with affordable housing challenges as the Colorado Springs housing market continues to outpace their pay.
Major General David S. Doyle, commander of the 4th Infantry Division and Fort Carson, said affordable housing is a concern of his when it comes to the army base being a part of the local economy.
“The interesting thing that's happening here in Colorado Springs is all the economic growth and development. This place is booming,” said General Doyle. “With that comes a little bit of an increase in the cost of living.”
Doyle said 26,000 personnel work on post at Fort Carson, but the base only offers 3100 family housing units.
As a result, a preponderance of soldiers live outside of the installation in the surrounding communities.
“Folks are trying to find places where they can put their kids in good schools, but they're also trying to find a place where they don't have to commute an hour-and-a-half to make it into the post,” said Doyle. “We're trying to help work both with the Army as well as with the civic leaders to make sure we address that concern.”
Military service members do receive what’s known as Basic Allowance for Housing (BAH) in addition to their base pay. But what many have found is the BAH rates aren’t high enough for the southern Colorado housing market.
According to the Department of Defense, the BAH increased an average of 5.4%in 2024. While base pay scales are the same across the country, the BAH changes from base to base. The allowance is calculated based on median market rents and average utilities. The BAH can also increase if there are dependents.
Military pay scales vary based on rank and years of experience. For example, a private, whose base pay is $24,000, can earn $1638 monthly without dependents or $2079 with dependents.
A staff sergeant, with base pay ranging from $38,000 to $51,000 depending on experience, receives $1896 without dependents and $2292 with dependents. This data is according to the Department of Defense and BAH calculator.
And it’s not just an Army issue. At the recent State of the Bases address, Col. David Hanson, Space Base Delta 1 commander, said their on-base housing is “maxed out.”
WATCH: Colonel David Hanson Address Affordable Housing
“Our junior enlisted members, they don't get a huge paycheck, but they do great work for us,” said Col. Hanson. “And a lot of them are bringing in families and spouses and children. And so finding affordable housing in a good neighborhood, near good schools is very important to us.”
Bill Craighead, director of the UCCS Economic Forum, indicated Colorado Springs rental prices might be within range based on a Fort Carson soldier’s BAH.
“The latest data we have is for February apartment list puts the median rent of a two-bedroom apartment in Colorado Springs at $1420.” said Craighead. “So it's down off that peak, but it's still quite a bit higher than it was a couple of years ago.”
In a Reddit post last year, one soldier at Fort Carson detailed how local rental units were charging above BAH rates and often required high credit scores, higher levels of income than a soldier’s pay, and plenty of applicants to choose from for a single place.
And due to the availability of VA loans and the desire to build equity, plenty of military members also opt to buy a home rather than rent.
However, Bill Craighead said the monthly payment on a median price house has gone way up since 2020, the last year that a soldier’s BAH might have been equivalent to a mortgage payment.
“Kind of a double whammy of higher home prices and higher interest rates,” said Craighead. “House prices have come down a little bit from their peak. But you're still looking at a monthly payment on the median area home–if you include estimates for taxes, insurance and the like– that's over $3,000.”
As a result, most military members seeking to live off base likely have to pay more than their monthly housing allowance, especially if they have a family and need more bedrooms.
Jason Anderson is an Army veteran and founder and managing broker for Solid Oak Realty and Veteran PCS (which stands for Permanent Change of Station). Veteran PCS is a service that helps connect moving military families with military real estate agents.
“The number one question I would say we get as real estate agents and brokers is, ‘Okay, well, how do I match up my monthly payment for a home with my allowance for housing?’” said Anderson. “What we see out here now is that it's very challenging.”
To put it in perspective, Anderson said the BAH for the most senior ranking member stationed at Fort Carson wouldn’t be enough to cover the cost of a three or four bedroom mortgage in the Colorado Springs market right now.
Anderson said it’s a tough situation where many families end up making ends meet by ensuring there’s a dual income in the household or by renting a room in the house to bring in extra money.
He said only about 10% of the homes in the local market would be in the range of the current BAH, which includes apartments, condos, and anything for sale.
“If you look at one of the more junior service members living off post, their basic pay and housing allowance could equal up to about $60,000. So call it $5,000 per month,” Anderson said. “The median home price, monthly mortgage payment would be over $3,000 per month. So it's actually more expensive for that mortgage than even just their base pay. So they’re way up into 60 or even 70% of their income would be going towards just a mortgage, which is astronomical, and just really unsustainable.”
There’s hope that the Department of Defense might reevaluate and greatly alter the BAH rates for 2025 in the Colorado Springs market, but senior military leaders are lobbying for local and state changes as well.
General Doyle, from Fort Carson, said they’re pushing support for Colorado Senate Bill 106, also known as the construction defect bill.
The bill would limit liability for contractors and make it more difficult for residents to file lawsuits for construction defects. The hope is to jumpstart the condo market and bring those builders back to Colorado. Condos are often seen as an affordable option for first-time homebuyers.
SB106 is scheduled for a hearing on March 21.
WATCH: 2024 State of the Bases Address
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Email Senior Reporter Brett Forrest at brett.forrest@koaa.com. Follow @brettforrestTVon X and Brett Forrest News on Facebook.
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